-
作者：Liu, Qing; Shi, Shouyong
作者单位：University of Toronto; Tsinghua University
摘要：We integrate a monetary search model into open-economy macro to analyze the gains from coordinating on inflation. Search frictions and local congestion lead to a determinate exchange rate between two currencies. Relative prices deviate from the law of one price. Because the deviations depend on the cross-country differential in money growth, each country is tempted to inflate to exploit the deviations. Policy coordination reduces inflation and improves welfare for all countries. In contrast to...
-
作者：Hochman, Gal; Segev, Ella
作者单位：University of California System; University of California Berkeley; Ben-Gurion University of the Negev
摘要：This article illustrates the importance of imperfect information in self-enforcing trade agreements. It shows that expected welfare is higher with current period uncertainty, and a high level of uncertainty may even undermine the need for a safeguard clause. These results were derived by extending the seminal paper by Bagwell and Staiger (The American Economic Review 80 (1990), 779-95) to account for current period uncertainty.
-
作者：Gall, Thomas
作者单位：University of Bonn
摘要：This article analyzes the effects of intrafirm bargaining on the formation of firms in an economy with imperfect capital markets and contracting constraints. In equilibrium, wealth inequality induces a heterogeneous distribution of firm sizes, allowing for firms both too small and too large in terms of technical efficiency. The findings connect well to empirical facts such as the missing middle of firm-size distributions in developing countries. The model can encompass a nonmonotonic relations...
-
作者：Damiano, Ettore; Li, Hao; Suen, Wing
作者单位：University of Toronto; University of Hong Kong
摘要：Though individuals prefer high-quality peers, there are advantages to being high up in the pecking order within a group. In this environment, sorting of agents yields an overlapping interval structure in the type space. Segregation and mixing coexist in a stable equilibrium. With transfers, this equilibrium corresponds to a competitive equilibrium where agents bid for relative positions and entails less segregation than the efficient allocation. More egalitarianism within organizations induces...
-
作者：Sullivan, Paul
作者单位：United States Department of Labor
摘要：This article examines career choices using a dynamic structural model that nests a job search model within a human capital model of occupational and educational choices. Wage growth occurs in the model because workers move between firms and occupations as they search for suitable job matches and because workers endogenously accumulate firm and occupation specific human capital. Simulations performed using the estimated model reveal that both self-selection in occupational choices and mobility ...
-
作者：Linnemann, Ludger; Schabert, Andreas
作者单位：Dortmund University of Technology
摘要：We study the consequences of nonneutrality of government debt for macroeconomic stabilization policy in a sticky-price model. Ricardian equivalence fails because debt has a negative impact on its rate of return and on private savings, which is induced by assuming transaction services of bonds. Under aggressive monetary policy regimes, macroeconomic fluctuations tend to be stabilized if nominal budget deficits are low. A smooth debt path limits inflation expectations, such that inflation varian...
-
作者：Dreher, Axel; Fischer, Justina A. V.
作者单位：University of Gottingen; Organisation for Economic Co-operation & Development (OECD); Stockholm School of Economics
摘要：Using panel data for a maximum of 109 countries over the years 1976-2000 we empirically analyze the impact of decentralization on the occurrence of transnational terror Our results show that expenditure decentralization reduces the number of transnational terror events in a country while political decentralization has no impact These results are robust to the choice of control variables and method of estimation
-
作者：Townsend, Robert M.; Ueda, Kenichi
作者单位：International Monetary Fund; Massachusetts Institute of Technology (MIT)
摘要：Financial liberalization has been a controversial issue, as empirical evidence for growth enhancing effects is mixed. Here, we find sizable welfare gains from liberalization (cost to repression), although the gain in economic growth is ambiguous. We take the view that financial liberalization is a government policy that alters the path of financial deepening, whereas financial deepening is endogenously chosen by agents given a policy and occurs in transition toward a distant steady state. This...
-
作者：Desmet, Klaus; Parente, Stephen L.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：This article proposes a novel mechanism whereby larger markets increase competition and facilitate process innovation. Larger markets, in the sense of more people or more open trade, support a larger variety of goods, resulting in a more crowded product space. This raises the price elasticity of demand and lowers markups. Firms, therefore, become larger to break even. This facilitates process innovation, as larger firms can amortize R&D costs over more goods. We demonstrate this mechanism in a...
-
作者：Choi, Jay Pil; Kristiansen, Eirik Gaard; Nahm, Jae
作者单位：Korea University; University of New South Wales Sydney; Yonsei University
摘要：It is a widely adopted practice for firms to announce new products well in advance of actual market availability, especially in the computer industry. In this article, a firm makes pre-announcements on its product, which are cheap talk. We develop a reputation model of vaporware where the product pre-announcement can partially convey information about the product's quality. We discuss its implications for social welfare.
