Henning Bunzel

Equilibrium Search with Human Capital Accumulation

The homogeneous search equilibrium model of Mortensen (1990) and Burdett and Mortensen (1998) is extended to allow on-the-job wage growth. The extension allows an improved empirical fit to the cross-section wage distribution. The estimation problem is nonregular but tractable. Estimated parameters are sensible and interpretable. The fit to the wage distribution is improved relative to homogeneous model but still not entirely satisfactory.

Seasonality in dynamic regression models: A comparative study of finite sample properties of various regression estimators including band spectrum regression

Abstract Monte Carlo methods are used to compare the finite sample properties of several seasonal adjustment procedures when the objective is to estimate coefficients in a dynamic regression equation with autocorrelated errors and the available data contaminated by seasonal noise. The methods compared are methods applying dummy variables, moving average corrections, band spectrum regression, and an iterative instrumental variable band spectrum regression estimator, developed as an iterative instrumental variable approach to an exact maximum likelihood estimator.