taxes under a balanced-budget rule in the presence of consumption externalities of the "keeping up with the Joneses" type … eliminating belief-driven cyclical fluctuations. Moreover, for higher values of consumption externalities, saddle path stability …

selection. Building on their framework we demonstrate that externalities between agents - an agent's utility upon accepting a … when the size of the externalities is arbitrarily small. Our result highlights the degree of control a principal has over …

We show that downsizing has substantial externalities on the health of workers who remain in the firm. To this end, we … health externalities due to downsizing imply non-negligible cost for firms, and that wage cuts may have similar effects …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities … externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others …

This paper provides a novel microeconomic foundation for pecuniary human capital externalities in a labor market model …

We present evidence on social incentives in the workplace, namely on whether workers' behavior is affected by the … presence of those they are socially tied to, even in settings where there are no externalities among workers due to either the … are paid piece rates based on individual productivity, social incentives can be quantified in monetary terms and are such …

endogenized. We show that graduate taxes reduce work incentives but provide incentives to improve teaching quality. Yet if tax …