learning model with the theory of rational inattention introduced by Sims (2006). In the model firms optimally allocate … attention (=information processing capacity) to learning about the productivity of different worker groups. I find that firms …

agents, we find that the effect of inequity aversion strongly depends on the information structure. When contributions are …, agents exert higher efforts in the first period and adjust their efforts according to the interim information in the second …

and benefit schedule and an information policy in a Norwegian welfare reform facilitate our study. The presence of notches … locations of benefit phase-out regions allows us to pin down the role of information. Our analysis delivers two main findings … attenuated by at least 70%. Second, the observed elasticity among those who receive the information letter is at least twice as …

contributions to the latter's decisions. Both a shift from national to international regulation and a decrease in trade costs …

This paper analyzes the effect of labor and product market regulation in a dynamic stochastic equilibrium with search …-and-firing (intensive) margin. We characterize analytically how both margins depend on regulation before we calibrate the model to the US … through firm selection. Finally, the opposite effect of product and labor market regulation on job turnover rationalizes the …

We contribute to the growing literature which aims to link product market regulation and competition to labor market … moving from the US low regulation-individual bargaining economy to the EU high regulation-collective bargaining economy leads …

This paper analyzes the effect of Product Market Regulation (PMR) on unemployment in a search model with heterogeneous …