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Fitting A Complex Markov Chain Model For Firm And Market Productivity, Julia Ruth Valder
Fitting A Complex Markov Chain Model For Firm And Market Productivity, Julia Ruth Valder
Theses and Dissertations
This thesis develops a methodology of estimating parameters for a complex Markov chain model for firm productivity. The model consists of two Markov chains, one describing firm-level productivity and the other modeling the productivity of the whole market. If applicable, the model can be used to help with optimal decision making problems for labor demand. The need for such a model is motivated and the economical background of this research is shown. A brief introduction to the concept of Markov chains and their application in this context is given. The simulated data that is being used for the estimation is …