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Market Distortions and Local Indeterminacy: A General Approach

Lloyd-Braga, Teresa; Modesto, Leonor; Seegmuller, Thomas - Institute for the Study of Labor (IZA) - 2011

We provide a methodology to study the role of market distortions on the emergence of indeterminacy and bifurcations … classes of distortions responsible for indeterminacy. Our methodology consists in introducing general specifications for the … distortions influence the range of values for the elasticity of inputs substitution under which local indeterminacy and …

Persistent link: https://www.econbiz.de/10008922965

Can Taxes Stabilize the Economy in the Presence of Consumption Externalities?

Lloyd-Braga, Teresa; Modesto, Leonor - Institute for the Study of Labor (IZA) - 2012

taxes under a balanced-budget rule in the presence of consumption externalities of the "keeping up with the Joneses" type … eliminating belief-driven cyclical fluctuations. Moreover, for higher values of consumption externalities, saddle path stability …

Persistent link: https://www.econbiz.de/10010578209

Employment Dynamics and Redistributive Policies under Workers' Social Norms

Dos Santos Ferreira, Rodolphe; Lloyd-Braga, Teresa; … - Institute for the Study of Labor (IZA) - 2014

multiplicity of equilibria and somewhat facilitate the emergence of indeterminacy and flip bifurcations, constituting therefore a … source of business cycles driven by self-fulfilling volatile expectations, i.e. sunspots. We also find that, in the presence …

Persistent link: https://www.econbiz.de/10010884212

Seemingly Irrelevant Events Affect Economic Perceptions and Expectations: The FIFA World Cup 2006 as a Natural Experiment

Dohmen, Thomas; Falk, Armin; Huffman, David; Sunde, Uwe - Institute for the Study of Labor (IZA) - 2006

Prominent economic theories have emphasized the role of commonly held perceptions and expectations for determining macroeconomic outcomes. A key empirical question is how such collectively held beliefs are formed. We use the FIFA World Cup 2006 as a natural experiment. We provide direct evidence...

Persistent link: https://www.econbiz.de/10005703189

Human Capital Externalities with Monopsonistic Competition

Kaas, Leo - Institute for the Study of Labor (IZA) - 2008

This paper provides a novel microeconomic foundation for pecuniary human capital externalities in a labor market model …

Persistent link: https://www.econbiz.de/10005233728

Boon or Bane? Others' Unemployment, Well-being and Job Insecurity

Clark, Andrew E.; Knabe, Andreas; Rätzel, Steffen - Institute for the Study of Labor (IZA) - 2009

The social norm of unemployment suggests that aggregate unemployment reduces the well-being of the employed, but has a far smaller effect on the unemployed. We use German panel data to reproduce this standard result, but then suggest that the appropriate distinction may not be between employment...

Persistent link: https://www.econbiz.de/10005015501

Learning Unethical Practices from a Co-worker: The Peer Effect of Jose Canseco

Gould, Eric D.; Kaplan, Todd R. - Institute for the Study of Labor (IZA) - 2008

This paper examines the issue of whether workers learn productive skills from their co-workers, even if those skills are unethical. Specifically, we estimate whether Jose Canseco, one of the best baseball players in the last few decades, affected the performance of his teammates. In his...

Persistent link: https://www.econbiz.de/10005761622

Is There Too Little Immigration?

Bandyopadhyay, Subhayu; Wall, Howard J. - Institute for the Study of Labor (IZA) - 2007

This paper presents a model of legal migration from one source country to two host countries, both of which can control their levels of immigration. Because of complementarities between capital and labor, the return on capital is positively related to the level of immigration. Consequently, when...

Persistent link: https://www.econbiz.de/10005761831

Interactions Between Workers and the Technology of Production: Evidence from Professional Baseball

Gould, Eric D.; Winter, Eyal - Institute for the Study of Labor (IZA) - 2007

This paper examines how the effort choices of workers within the same firm interact with each other. In contrast to the existing literature, we show that workers can affect the productivity of their co-workers based on income maximization considerations, rather than relying on behavioral...

Persistent link: https://www.econbiz.de/10005762125

Using Happiness Surveys to Value Intangibles: The Case of Airport Noise

Praag, Bernard M. S. van; Baarsma, Barbara E. - Institute for the Study of Labor (IZA) - 2004

Inhabitants of houses near Amsterdam Airport are complaining of noise nuisance, caused by aircraft traffic. The usual assumption is that the effect of the externality will be perfectly reflected by house price differentials. This is based on the implicit assumption that there is a...

Persistent link: https://www.econbiz.de/10005762138