these firms is an integral part of the structural transformation of the economies of East-Central Europe (ECE). Data for … Hungary on changes in the size distribution of firms and their importance for output and employment indicates that industry … market demand and international price signals. Disaggregated industry data from Hungary support the propositions that …

the special case in which prices are sticky and wages are perfectly flexible. When the model is calibrated to exhibit an …

This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a … global economy. It builds on the models of Davis (1998a, b) of trade between a flexible-wage America and a rigid-wage Europe …

nominal wages. This finding contrasts with results obtained using standard sticky-wage models, which employ Walrasian labor … tolerate large fluctuations in real wages that would otherwise not be tolerated in a standard model with Walrasian labor … markets; as a result, any concern for stabilizing nominal wages does not translate into a concern for stabilizing nominal …

utility calculations. There is a stabilization problem because there are one-period nominal contracts for wages, or prices, or …