The aim of the project was to develop a novel mathematical method that will facilitate the introduction of heterogeneity of economic agents into otherwise standard macroeconomic general equilibrium models. The method was rather flexible and it was possible to use it to study a wide array of problems, ranging from changes in income inequality in the business cycle to  the role of liquidity contraints in the financial sectore in the propagation of recessions.  In the context of the project, we developed a heterogeneous firm model with on-the-job search and financial frictions which will be used to analyze labour market flows.

 

This project has received funding from the National Science Centre under decision no DEC-2011/03/B/HS4/05895

main investigator: Marek Antosiewicz

main investigator: Jacek Suda

project lead: Marek Góra

contact : marek.antosiewicz@ibs.org.pl

persons from IBS