We develop a partial equilibrium stochastic job matching model of the labor market to examine whetherthe counseling of unemployment workers displaces unemployed workers not offered the counseling. Inthis model, the improvement of the reservation utility of counseled job seekers induces them to...

This paper develops a framework to analyze the relationship between the diffusion ofnew technologies and the decentralization decisions of firms. Centralized controlrelies on the information of the principal, which we equate with publicly availableinformation. Decentralized control, on the other...