We show that adjustment cost models with labor supply can explain both asset returns and business cycle facts when adjustment costs penalize the changes of investment. This conclusion stands in contrast to results obtained in the literature with adjustment costs that penalize the changes of capital.

La crise mondiale et celle, plus récente, dans la zone euro ont eu tendance à raccourcir l’horizon prévisionnel et décisionnel de nombreux agents économiques. Dans le même temps, les incertitudes (sur l’emploi, les retraites…) poussent plutôt à la remontée du taux d’épargne des...

The effect of debt on private investment is theoretically undetermined. Indeed, according to the theory, the relation between debt and private investment can either be negative (debt overhang) or positive (accelerator effect on economic growth, hence on private investment). Our study consists in...

We analyze the relationship between inequality and economic growth from two directions. The first part of the survey examines the effect of inequality on growth, showing that when capital markets are imperfect, there is not necessarily a trade-off between equity and efficiency. It therefore...

Using the structural unobserved component (UC) modeling, this study will analyze the Senegalese economic growth path after 5 decades of independence by focusing on the potential output, the GDP cycle, and the type of shocks on the GDP. Empirical evidence suggests that an inventory cycle mainly...

Although the impact was less dramatic than in other Asian countries, Vietnam has been affected by the international crisis which started in 2008, resulting in a significant slowdown of economic growth. This paper aims at assessing the impact of this economic crisis on employment, unemployment...

For many centuries, forms of Islamic charity such as zakat (i.e. "obligatory" alms) and waqf (i.e. endowment or philanthropic foundation) have proven to be essential tools for economic and human development. Both of these schemes aim to reduce income inequality and to encourage productive...

This paper analyses the impact of public infrastructure on the competitiveness and growth of the Senegalese economy within the framework of a computable general equilibrium model. Latreille and Varoudakis (1996) demonstrated, in partial equilibrium, that the absence of competitiveness within...