This paper reviews a new approach to the design of unemployment policies. It focuses on polciies that have become an increasingly popular weapon against long-term unempoloyment, namely, policies that subsidize the hiring of the long-term unemployed. Whereas the existing literature usually...

The message of this paper can be summarized in two simple points: (i) A wide range of labor market institutions - including unemployment benefits, job security legislation and payroll taxes - have complementary effects on unemployment, (ii) Thus a correspondingly wide range of labor market...

This paper considers extension of the standard cobweb model in a market with local externalities. In contrast with the standard cobweb model, firms must forecast both prices and local quantities; Fourier analysis is shown to lead to new constructive stability and existence conditions for...

We develop a theory of contracts with competing agencies under symmetric information and under moral hazard. In contrast to much of the literature, we allow the agencies to choose from a general contract space. Under the assumption of supermodularity, we show that in both cases the equilibria in...