This paper highlights analytical reasons why we believe trade and technology are linked to wagemovements in general, and how we should organize our examination of the recent episode of wage andemployment erosion in the OECD countries. We start with a graphic tour through the mechanics ofgeneral...

Tests for structural stability with unknown breakpoint are derived for and applied tothe efficient method of moments. Three types of tests are discerned: Wald type tests,Predictive tests and Hansen type tests. The Hansen type test for structural stabilitywith unknown breakpoint is a novelty for...

Integrated assessment models lack a microeconomic foundation in modelling environmental damages to the economy. To overcome this, damage coefficients are incorporated in standard microeconomic models. Firms and consumers take both damages and prices as given. Demand, supply, profit and...

This paper conducts the first general equilibrium analysis of the role of entry, exit and profits in industry dynamics. The benefit of our model is twofold. First, to discriminate between entrants’ role of performing the entrepreneurial function of creating disequilibrium and the conventional...

This paper examines the use of equilibrium search models in the empiricalanalysis of labor markets. We survey the literature on structural estimationof these models with micro data on wages and durations, and we discuss theadvantages of the equilibrium approach, for policy analysis and...