Bayesian inference in models based on equilibrium search theory

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)


The equilibrium search model represents a substantial advance over previous models of job search, but its empirical performance fails in some crucial ways. Hence, flexible extensions are called for. In this paper, we consider three such extensions in areas where Bayesian methods can be used to great advantage. These are: (i) a specification where Bayesian priors are used to center a model over the restrictions implied by economic theory; (ii) a model involving a nonlinear production function where a closed form expression for the likelihood function does not exist; and (iii) a model which allows for unobserved heterogeneity. We show how posterior simulation methods can be used for empirical analysis for all three models. The paper includes an empirical exercise involving the school-to-work transitions of Canadian and US school leavers.
Original languageEnglish
Pages (from-to)311-338
Number of pages27
JournalJournal of Econometrics
Publication statusPublished - 2001


  • bayesian models
  • search theory
  • econometrics
  • economics
  • statistics

Fingerprint Dive into the research topics of 'Bayesian inference in models based on equilibrium search theory'. Together they form a unique fingerprint.

Cite this