This chapter reviews the literature on the theory of relational incentive contracts.  It motivates the discussion by the classic applications of relational contracts to the GM-Fisher Body relationship and the relationships between Japanese automobile manufacturers and their subcontractors.  It...

We consider an observer who makes a finite number of observations of an industry producing a homogeneous good, where each observation consists of the market price and firm specific production quantities.  We develop a revealed preference test (in the form of a linear program) for the hypothesis...

Productivity is high in cities partly because the urban environment acts as a self-selection mechanism.  If workers have imperfect information about the quality of workers with whom they match and matches take place within cities, then high-ability workers will choose to live and work in...

Although a general unrestricted model may under-specify the data generation process, especially when breaks occur, model selection can still improve over estimating a prior specification.  Impulse-indicator saturation (IIS) can 'correct' non-constant intercepts induced by location shifts in...

This paper incorporates Nash bargaining, credible bargaining and efficiency wages as special cases of an over-arching model of wage determination in a matching model that is used to assess econometrically how well each fits US data.  With Nash bargaining, estimates for worker bargaining power...

The new-Keynesian Phillips curve (NKPC) includes expected future inflation as a major feedforward variable to explain current inflation.  Models of this type are regularly estimated by replacing the expected value by the actual future outcome, then using Instrumental Variables or Generalized...

In models with a representative infinitely lived household, modern versions of tax smoothing imply that the steady-state of government debt should follow a random walk.  This is unlikely to be the case in OLG economies, where the equilibrium interest rate may differ from the policy-maker's rate...

This paper is largely motivated by the empirical observation that GP visits per person under the NHS have increased in England since the mid-1970s, while list sizes have decreased over the same period  A hypothesis consistent with this observation is that larger list sizes are associated with...

A windfall of natural resource revenue (or foreign aid) faces government with choices of how to manage public debt, investment, and the distribution of funds for consumption, particularly if the windfall is both anticipated and temporary.  Standard policy advice follows the permanent income...

Fragmentation of stages of the production process is determined by international cost differences and by the benefits of co-location of related stages.  The interaction between these forces depends on the technological relationships between these stages.  This paper looks at both cost...