Question: Write down the dynamic programming recursion that characterizes the optimal behavior of an unemployed worker. Be specific about he assumptions you are making in

Write down the dynamic programming recursion that characterizes the optimal behavior of an unemployed worker. Be specific about he assumptions you are making in writing this recursion (and justify these assumptions). Derive an expression for the value of an unemployed worker, u.

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To characterize the optimal behavior of an unemployed worker we can use dynamic programming to derive a recursion known as the value function The valu... View full answer

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