We reexamine the association between poverty, the middle class, and institutional outcomes using a newly developed cross-country panel dataset containing detailed information on the distribution of income and expenditure. When the size of the middle class increases (measured as the proportion of...

A monopoly that sells to brand-name loyal customers and to price-sensitive customers must decide whether to carry both name-brand and private-label products and how much to charge. The monopoly may charge either more or less for the brand name if it carries a private label, and the price...

In this paper we investigate the relationship between the intensity of the recent global economic crisis and the current economic position of EU countries on the one hand and relative poverty and/or inequality on the other. Using data from the 27 EU member states we find a link between economic...

This paper examines the effects of a budget-neutral public spending allocation between public investment and private investment subsidy on inequality dynamics and intergenerational mobility in an environment with heterogeneous households and incomplete capital market.

We characterize and compare equilibrium pricing strategies in a marketing channel in two scenarios. In the first scenario, the manufacturer chooses the wholesale prices of the two versions of a product, i.e., tangible and digital. and the retailer their prices to consumer. In the second...

The upper tail of the size distribution of websites follows a power law with slope close to one (Zipf’s law). This finding is robust to measuring website size by unique visitors and page views, and holds for the United States, Germany, and the world. Web traffic in China has less support for a...

This paper contains a proof that under one testable condition a measure of economic mobility formed by the ratio of permanent to total variance employing the methods of Gottschalk and Moffitt (1994) is equivalent to the Shorrocks R constructed with a Theil General Entropy Index.

We empirically test the positive relationship between market access and wages stated by New Economic Geography. Contrary to most estimations in other countries, we find evidence of significant spatial heterogeneity of this elasticity across Chilean communities.

We model unemployment duration, reservation and expected wages simultaneously for individuals not in work, where wage expectations are identified via an exogenous policy shock. The policy shock increased expected wages, which were found to be positively associated with reservation wages.

We use longitudinal data from an Irish household survey to measure the union wage premium. A subsample in which the worker’s payslip was seen by the interviewer is unlikely to have measurement error for the union variable. The results support the finding that measurement error leads to a large...