workers have the same probability of being hired. We argue that selective hiring crucially affects welfare analysis. Our model … predictions of the model change very little, but the welfare costs of unemployment are much larger because unemployment risk is … distributed unequally across workers. As a result, optimal unemployment insurance may be higher and welfare is lower if hiring is …

-run output effects of the different consolidation strategies, but also regarding the welfare effects and the distributional … of credit-constrained households who cannot smooth consumption has a large impact on the overall output and welfare …

, through a comparison of social welfare given the strategies chosen by the locals governments, that whatever the quality of the …

as the consumption-wealth ratio, the growth rate of wealth, and welfare, in a two-country world, based on a portfolio …-wealth ratio, and welfare should be higher in an open economy due to a higher productivity and/or less volatility through risk …

. Persistently increasing those costs, reduces the welfare in the model economy but increases employment. The reason for the …

costs. This creates a new trade off for firms between a low tax-burden and the exercising of market power. Welfare for …

is welfare improving for the foreign country, but welfare declining for the domestic country. If only multinational firms … are competitive, the impact on market structure and the welfare of the domestic country is indeterminate, whereas the … welfare of the foreign country improves. By contrast, if the oligopolistic industry is located in both countries' then FDI …