The paper theoretically examines the relationship between variable labor effort (also labeled efficiency wages), effective demand, and involuntary unemployment.

This paper accounts for work sharing and unemployment in an efficiency wage model.The Solow condition holds when working hours are exogenous. Under the assumption of endogeneity and using general forms for the effort and cost functions, we prove that work sharing may have a reducing impact on...

The importance of high salaries to circumvent bureaucratic corruption has been widely recognized in the policy debate. Yet, there appears to be much reluctance when it comes to the implementation. In this paper, we argue that deterring corruption through wage incentives may become prohibitively...

We consider a dual labor markets model in which the primary sector requires the presence of efficiency wage, while the secondary sector is competitive. We show that the Solow condition does not hold in a Stackelberg equilibrium where the primary sector acts as a leader and the secondary one as a...

The efficiency wage theory developed by Akerlof (1982) assumes observability of effort and the ability of firm and worker to commit on their effort/wage decisions. We show that, from a game theoretical point of view, we have to understand the firm/worker relationship as a repeated Prisoner's...

Formation of SEZ using agricultural land to promote industrialization has recently been one of most controversial policy issues in many developing economies including India. This paper critically theoretically evaluates the consequences of this policy in terms of a three-sector Harris-Todaro...

China has experienced several episodes of inflation in recent years. Popular arguments attribute these episodes to relatively high growth rates of money, which were then primarily explained by China’s accumulation of foreign exchange reserves and the undervaluation of RMB. We attempt to...

The aim of the paper is to analyze the functional transformation of the main Warsaw shopping streets in 1996-2010 in terms of their retail and services offer. The analysis was based on data on business entities of selected branches located in Warsaw downtown. The analyzed period was a time of...

Two important, increasing trends for those concerned about climate change to consider are urbanization/the importance of cities and energy used in transport—particularly energy used to achieve personal mobility. While national urbanization levels are not a good indicator of urban transport...

The quintessence of the Isobenefit Urbanism presented here, is to offer fair, walkable and green cities. Its three cornerstones are Modernity, Humanity and Naturality, which are exposed by five principles. The latter, rather then describe The ideal city, which doesn’t exist outside our own...