We model empirically the role of labor market institutions in affecting the response of inflation to labor market and exchange rate shocks in the EU. We adopt a simple Phillips curve framework, treating separately the sectors producing traded and non-traded goods. Our results show that labor...

Durante la década de los 90 ocurren en Colombia diversos acontecimientos de importanciaa nivel social y económico, que inciden en muchos sentidos para la crisisy la recesión que nos agobia en los comienzos del siglo XXI.La introducción de la apertura, la aprobación de una nueva...

The Phillips Curve (hereafter PC) is widely viewed as dead, destined to the mortuary scrapyard of discarded economic ideas. The coroner's evidence consists of the small standard deviation of the core inflation rate in the past two decades despite substantial volatility of the unemployment rate,...

This paper considers the meaning of full employment and attempts to gauge the appropriate level of "sustainable" full employment. The second section of the paper reviews the various theories of employment that have been applied to gain an understanding of the concept of full employment. The...

In a path-breaking but largely overlooked study, published in a festchrift thirty years ago (1975), Herman Van der Wee provided a comparison of prices and real wages of building craftsmen in the regions of Antwerp and south-eastern England, from 1400 to 1700. To do so, he constructed a composite...

In this paper we study the relationship between labour market institutions and monetary policy. We use a simple macroeconomic framework to show how optimal monetary policy rules depend on labour institutions (labour adjustment costs, and nominal and real wage rigidity) and social preferences...

In this paper it is argued that the domestic division of labor and trade is organized according to the same principle as the international division of labor and trade – the Ricardian comparative advantages. After all, the ultimate source of these comparative advantages is the individual. The...

This empirical study suggests that, far from ensuring assets are put to their best use, Chapter 11 encourages small-business entrepreneurs to remain too long with failed businesses before trying to start (or work for) new ones. Small entrepreneurs open and close a number of businesses over the...

A firm hiring new workers has a choice: it can either hire permanentquot; workers, which means entering into a quot;life-time employmentquot; (long term) contract with them, or quot;temporaryquot; ones, who can be hired and fired according to current needs. We assume that the latter are less...

This paper uses a vertical differentiation duopoly framework to analyze firms` relocation decisions, when the removal of trade barriers or restrictions on capital outflows or inflows (globalization) allows them to serve the domestic market through foreign plants in low-wage countries. The...