Chair of Macroeconomics. Computational Macroeconomics 2025
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Chair of Macroeconomics. Computational Macroeconomics 2025
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The McCall search model (McCall, 1970) helped economists’ way of thinking about labor markets.
To clarify vague notions such as involuntary unemployment, McCall modeled the decision problem of unemployed agents directly, in terms of factors such as current and likely future wages, impatience, unemployment compensation.
To solve the decision problem he used dynamic programming.
As we will see, McCall’s model is not only interesting in its own right but also an excellent vehicle for learning dynamic programming