Showing 1 - 4 of 4
This paper considers the optimal contract when the current (hidden) action of an agent has a persistent effect on the future outcome. In this setting, the current outcome is not only a signal of the current action taken by the agent, but also conveys information about his past actions. The...
Persistent link: https://www.econbiz.de/10005346032
This paper reconsiders the cost of business cycles under market incompleteness. Primarily, we focus on the heterogeneity in the cost among different skill groups. Unskilled workers are subject to a much larger risk of unemployment during recessions than are skilled workers. Moreover, unskilled...
Persistent link: https://www.econbiz.de/10008671546
This paper constructs a general equilibrium search-matching model with heterogeneous workers. Workers choose whether to invest in general human capital or specific human capital when they enter the labor market. We analyze how unemployment benefits affect the choice of the type of human capital...
Persistent link: https://www.econbiz.de/10008671563
This paper formulates Rosenberg's (1982) "learning by using" as a stochastic process. The producer of machines learns from the experience of users. Due to this learning, the quality of machines improves over time. It turns out that the process of this improvement approximately takes an...
Persistent link: https://www.econbiz.de/10008671567