Skip to content

Commit ece13f0

Browse files
jstacclaude
andauthored
Standardize notation: Use capitals for random variables in Job Search I-V (#704)
* Standardize notation: Use capitals for random variables in Job Search I-V Updated notation in Job Search lectures I-V to use uppercase letters for random variables and lowercase for realizations: - Job Search I (mccall_model.md): w_t → W_t in wage offer sequences - Job Search II (mccall_model_with_separation.md): w_t → W_t for wage offers - Job Search III (mccall_model_with_sep_markov.md): (s_t, w_t) → (S_t, W_t) for state variables - Job Search IV (mccall_fitted_vfi.md): Already using correct notation - Job Search V (mccall_persist_trans.md): w_t → W_t, z_t → Z_t, y_t → Y_t for wage components Lowercase notation remains for realizations in sums (e.g., sum_w v(w) q(w)) and for standard normal shocks (zeta_t, epsilon_t). 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude <noreply@anthropic.com> * Clarify utility function notation to avoid confusion with unemployment compensation Changed utility function parameter from 'c' to 'x' to distinguish between: - The consumption argument of the utility function u(x) - The unemployment compensation parameter c This prevents confusion when we write expressions like u(c), where c is the specific value of unemployment compensation being passed to the utility function. Updated in: - Job Search II: def u(c, γ) → def u(x, γ) - Job Search III: def u(c, γ) → def u(x, γ) - Job Search IV: def u(c, γ) → def u(x, γ) - Job Search V: u(c) = ln(c) → u(x) = ln(x) 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude <noreply@anthropic.com> * Improve Job Search IV: Add explanations, simulation, and cross-sectional analysis Major improvements to Job Search IV (Fitted Value Function Iteration): 1. Notation and clarity: - Changed utility function from u(c, γ) to u(x, γ) to avoid confusion with unemployment compensation parameter c - Fixed random variable notation: w → W_t in model description - Changed z_i → Z_i in Monte Carlo formula - Updated Model constructor from named to positional arguments - Renamed variables in T and get_greedy: accept → v_e, reject → continuation_values - Standardized naming: h_star → h, w_star → w_bar 2. Added explanations: - Explained the explicit form of (Pv_u)(w) with derivation - Changed "From the equation above" to "Recall that we have" - Added explanation before Bellman operator about Monte Carlo integration 3. Updated plot styling: - Simplified plot to match Job Search III style - Show only continuation value h and employment value v_e - Updated labels and explanation text 4. Added Simulation section: - Implemented update_agent function with job separation logic - Added simulate_employment_path function - Created three-panel plot showing employment status, wage path, and cumulative unemployment rate - Properly handles Markov wage dynamics with separation 5. Added Cross-Sectional Analysis subsection: - Vectorized update function for parallel agent simulation - JIT-compiled simulation using lax.fori_loop - Cross-sectional unemployment histogram - Comparison of time-average vs cross-sectional unemployment rates 6. Added missing import: from functools import partial 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude <noreply@anthropic.com> --------- Co-authored-by: Claude <noreply@anthropic.com>
1 parent f572fcf commit ece13f0

File tree

5 files changed

+365
-52
lines changed

5 files changed

+365
-52
lines changed

0 commit comments

Comments
 (0)