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nothing if it loses. We study a model of war with such an asymmetric payoff structure, and private information about military … win the war unless its expected military technology is considerably worse. Our model may thus explain why defending …
Persistent link: https://www.econbiz.de/10010668476
international conflict. In this paper, we investigate whether this motive is sufficiently important for war to persist in … Immanuel Kant (1795, 1991) always exists. The reason is that in the absence of the threat of war, leaders are unable to divert … exist with a positive war frequency. Third, if multiple equilibria exist, the perpetual peace equilibrium may be unstable in …
Persistent link: https://www.econbiz.de/10005765879
This study proposes an analytical framework towards behavioral political economy of institutional change. It considers institutional changes as central government’s choices under uncertainty, which are largely driven by the strategic outcomes in a behavioral coordination game between local...
Persistent link: https://www.econbiz.de/10010948883
This paper investigates the effect of labor immigration on public pensions when wage setting by a centralized trade union leads to unemployment. It is shown that immigration improves the financial soundness of pay-as-you-go pensions if and only if it diminishes total employment. This occurs if...
Persistent link: https://www.econbiz.de/10005765645
This paper explores the effects of high skilled immigration to a host country with unionized low skilled labor and an unemployment insurance scheme. We show that such immigration can create a negative immigration surplus due to adverse effects on low skilled employment, provided that fiscal...
Persistent link: https://www.econbiz.de/10005406111
A trade union whose purpose is to raise wages above the competitive level may foster economic growth if it succeeds in shifting income away from the owners of capital to the workers and if the workers' marginal propensity to save exceeds the one of capitalists. We make this point in an...
Persistent link: https://www.econbiz.de/10005406167
Status considerations with respect to consumption give rise to negative externalities because individuals do not take into account that their decisions affect the relative consumption position of others. Further, status concerns create incentives for excessive labour supply in competitive...
Persistent link: https://www.econbiz.de/10010676265
This paper examines the interaction between productivity growth, firms’ monopolistic market power, and workers’ wage bargaining power. Our study contributes to several strands of literatures. First, we examine a monopolistic framework which accounts for wage bargaining. In addition to the...
Persistent link: https://www.econbiz.de/10011210785
Historically, worker movements have played a crucial role in making workplaces safer. Firms traditionally oppose better health standards. According to our interpretation, workplace safety is costly for firms but increases the average health of workers and thereby the aggregate labour supply. A...
Persistent link: https://www.econbiz.de/10009351471
We analyse how different labour market institutions - employment protection versusflexicurity - affect technology adoption in unionised firms. We consider both trade unions’ incentives to oppose or endorse labour-saving technology, and firms’ incentives to invest in such technology. We find...
Persistent link: https://www.econbiz.de/10005765710