Monthly Archives

December 2019

Consumer Good Search: Theory and Evidence

Dr. Saman Darougheh

Researcher at the Danish Central Bank


I develop a model of the consumer good market where the individual’s search decision is consistent with balanced-growth preferences. Here, optimal search is independent of income but increases with the time endowment. I characterize the potentially multiple equilibria and test whether the model can replicate differences in observed shopping behavior across employed and unemployed individuals. Using the American Time Use Survey, I show that
unemployed individuals have… MORE>>