A matching model with labor/leisure choice and bargaining frictions is used to explain (i) differences in GDP per hour and GDP per capita, (ii) differences in employment and hours worked (per capita and per worker), (iii) differences in the proportion of part-time work across countries. The...

This paper is an attempt to explain differences in economic performance between a subset of OECD countries. We classify countries in terms of their degree of rigidity in the labor market, and use a matching model with labor/leisure choice, bargaining frictions, and labor income taxation to...

How and why does the firm size distribution differ across countries? This paper documents that features of the firm size distribution are strongly associated with income per capita. Richer countries have fewer entrepreneurs and fewer small firms. The average, dispersion and skewness of firm size...

Recent empirical research has documented the importance of shocks to firmspecific productivity, but has provided only limited evidence on their sources. This paper proposes and analyzes purposeful experimentation by firms as a source of such shocks and models industry dynamics in such a setting....

Long run economic growth goes along with structural change. Recent work has identified explanatory factors on the demand side (non-homothetic preferences) and on the supply-side, in particular differential productivity growth across sectors and differences in factor proportions and capital...

Why do some people become entrepreneurs, how do institutions affect this choice, and how does this affect the firm size distribution and aggregate productivity? This paper addresses this question using a matching model with occupational choice and heterogeneity in both ability as a worker and ex...

Why do some people become entrepreneurs (and others don't)? Why are firms so heterogeneous, and many firms so small? To start, the paper briefly documents evidence from the empirical literature that the relationship between entrepreneurship and education is Ushaped; that many entrepreneurs start a...

In this paper we study jointly optimal ¯scal and monetary policies in a small open economy framework with capital and sticky prices. We consider the case of distor- tionary taxes on labor and capital, and no public debt. As in a closed economy set{up, in the steady state, the optimal in°ation...

Cet article propose une extension du cadre de travail théorique proposée par Bilbiie, Ghironi et Melitz [2007] en économie ouverte afin d'étudier les effets de la politique monétaire sur marges intensives et extensives sur l'activité économique. Deux régimes de politique monétaire sont...

This paper proposes a conceptual framework to investigate the impact of military conflicts on business cycles, as well as defense policies through enrolment mechanisms. Our framework is a variation of a Real Business Cycle model first proposed by Hercowitz and Sampson (1991) that admits explicit...