A labor market is considered that is characterized by job competition over job ladders. Firms paying more for comparable jobs can attract workers with better background characteristics (with general human capital) and will lose fewer trained workers (with general and firm-specific human...

We review the continuous{time literature on the so{called direct approach to bond option pricing. Going back to Ball and Torous (1983), this approach models bond price processes directly (i.e. without reference to interest rates or state variable processes) and applies methods that Black and...

A firm may reduce its turnover and the entailed turnover costs by raising wages. A rise in unemployment reduces turnover and turnover costs in a similar way. The interaction of these effects leads – in presence of perfectly flexible wages – to a stable equilibrium in the labor market which...

This note, published in 1995, assesses the problems that might be entailed by the introduction of the European monetary union. It is argued that wage pressure will not be diminished by forming the union, and the stagflation problem that lies at the root of the rising trend in unemployment will...

The industrialization process of a country is often plagued by a failure to coordinate investment decisions. Using the Global Games approach we can solve this coordination problem and eliminate the problem of multiple equilibria. We show how appropriate information provision enhances efficiency....

Am 28. Oktober 2011 wurde in Berlin der 8. Familienbericht an die Bundesministerin für Familie, Senioren, Frauen und Jugend übergeben. Er beschäftigt sich mit dem Thema »Zeit für Familie« und mit den Notwendigkeiten und Möglichkeiten einer Familienzeitpolitik. Für die Erstellung des...

Am 28. Oktober 2011 wurde in Berlin der 8. Familienbericht an die Bundesministerin für Familie, Senioren, Frauen und Jugend übergeben. Er beschäftigt sich mit dem Thema »Zeit für Familie« und mit den Notwendigkeiten und Möglichkeiten einer Familienzeitpolitik. Für die Erstellung des...

We analyze the incidence and welfare effects of unit sales tax increases in experimental monopoly and Bertrand markets. We find, in line with economic theory, that firms with no market power are able to shift a high share of the tax burden to consumers, independent of whether buyers are...