(1) and (2) and receives salary from the private sector agent (if she is working) or receives benefits from the government agent (if she is retired), depending on the age of this cohort, following the budget constraint (3).
The multi-agent system created to simulate the effects of pension system reform consists of three different types of agents, representing various elements of the domain government agent, private sector agent, and multiple subcohorts, i.e., heterogeneity within a single cohort.
If the government then used this (short-run) relationship to try to achieve a lower unemployment/higher inflation outcome than private sector agents had been expecting as the norm, then, after some lag, expectations would adjust upwards.
New incentive structures put in place by private sector agents that take over outsourced tasks have also had adverse effects on accountability.
"There is nothing wrong with governments employing private-sector agents abroad in support of their interests"; hiring mercenaries is "a cost- effective way of procuring services which would once have been the exclusive preserve of the military" and "a strong and reputable private military sector might have a role in enabling the UN to respond more rapidly and more effectively in crises".
Recall, there is some additional friction (if κ<1) in looking for a job while employed by a large firm, relative to being in unemployment, λ 1=κ λ 0. The arrival rate of job offers from private sector firms to unemployed agents is then given by lambda_{0} = frac{N h^{f}}{N_{u} + kappa {N_{e}^{f}}} (25).
Then one realizes that the increased cost of collection benefits the much admired private sector whereas hiring more agents, even though economically efficient, has the lamentable side effect of increasing the size of the much disliked (by Republicans) federal bureaucracy.
But to be effective in Sierra Leone's post Ebola economic development, the private sector has to become an agent of change, opening itself up to innovation, adopting standards and practices that encourage international competitiveness.
In the private sector, depending on the local agent or manufacturer, the cost of antiretrovirals can exceed 32.5% more than the discounted price obtained through the Accelerated Access Initiative (AAI).
These endorsed products were commonly branded under the name Zuia Mbu, literally meaning "Prevent mosquitoes" in Kiswahili, and distributed through a range of contracted private and public sector agents chosen by the communities themselves.
In the model, there are two types of agents, large private sector firms who vary in their productivity and ex ante homogeneous workers who are exposed to innovative ideas which arrive at an exogenous Poisson rate that is dependent on their labor market status.
