We introduce a joint model of labor market search and firm size dynamics to explain the differential in labor market and productivity outcomes between the U.S. and the European Union. At the core, our model is a hybrid of the labor market search model by Mortensen and Pissarides (1994) and the...

The purpose of this paper is to study how progress in home production technologies and in medical technologies influences gender differences in labor market outcomes and the household division of labor, in an economy with endogenous gender roles. We consider a model in which incentive problems...

This paper studies optimal taxation of entrepreneurial capital and financial assets in economies with private information. Returns to entrepreneurial capital are risky and depend on entrepreneurs' effort, which is not observed. The presence of idiosyncratic risk in capital returns implies that...