This paper studies a model of the distribution of income under bounded needs. Utility derived from any given good reaches a bliss point at a finite consumption level of that good. On the other hand, introducing new varieties always increases utility. It is assumed that each variety is owned by a...

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and balanced budget rules cause a complementarity between capital and employment capable of explaining the existence of multiple equilibrium paths. Hysteresis is viewed as the result...

Angesichts der gegenwärtigen Finanzmarkt- und Wirtschaftskrise überbieten sich die Anbieter von Prognosen derzeit in immer neuen Schreckenszenarien und pessimistischen Konjunkturvorhersagen. Prognosen beeinflussen Verhalten und Stimmungen und sind deshalb in Krisenzeiten von besonderer...

Wirtschaftspolitische Entscheidungen sollten durch eine sorgfältige Beratung vorbereitet und begleitet werden. Kompetente Beratung seitens der unabhängigen Wissenschaft ist nötig, um einen nachhaltigen Politikansatz zu fördern und tendenziell kurzatmigen Lösungsversuchen entgegen zu wirken....

We study fiscal devaluation in a small-open economy with labor market search frictions. Our analysis shows the key role of both dimensions in shaping the optimal tax scheme. By reducing labor market distortions, the tax reform is welfare-improving. Yet, as it makes imports more expensive, fiscal...

This paper offers a reappraisal of the impact of migration on economic growth for 22 OECD countries between 1986-2006 and relies on a unique data set we compiled that allows us to distinguish net migration of the native-born and foreign-born by skill level. Specifically, after introducing...

In this paper we show that vocational training is an important determinant of productivity growth. We construct a multi-country, multi-sectoral dataset, and quantify empirically to what extent vocational training has contributed to increase the growth rate of labor productivity in Europe between...

We examine economic growth, inequality and education when the wellspring of growth is the formation of human capital through a combination of the quality of child-rearing and formal schooling. The existence of multiple steady states is established, including a poverty trap, wherein children work...