job centers. In a decentralized economy job-seekers do not internalize a composition externality they impose on all the …

externality in a specific parametric case. In particular, we characterize the shape of imbalance effects in this model. Our … investigation tends to show that these findings are robust to the presence of the Lucas externality as long as a unique equilibrium …

case). The decentralization of the optimal solution aims at correcting the inter-generational externality by use of an …