This paper shows that state control of some industries may have contributed to the increase in European unemployment from the 1970s to the early 1990s. We develop a simple model with both publicly-run and privately-run enterprises and show that when economic turbulence increases, higher...

We examine the distribution of hours of work across industrial sectors in OECD countries. We find large disparities when sectors are disaggregated into those that produce goods (a) with no home substitutes, (b) in health and social care, or (c) with close home substitutes. We attribute the...

What factors underlie industry differences in research intensity and productivity growth? We develop a multi-sector endogenous growth model allowing for industry-specific parameters in the production functions for output and knowledge, and in consumer preferences. We find that long run industry...

We study the impact of three different types of policy on the sectoral composition of employment and on the overall level of market employment: (1) regulations that reduce the efficiency of market production, such as administrative burdens on companies, (2) income transfers across population...

We study the interactions between aggregate growth and structural change. Our economy has many sectors characterized by different rates of total factor productivity growth and producing differentiated products. All sectors produce consumption goods but one sector, labelled manufacturing, also...

The majority of transactions in housing market involve moving from one house to another. This process entails a listing (putting up for sale) of an existing house and the eventual purchase of another house. Existing models of the housing market have focused solely on buying and selling...

The rise in female participation to the labor market and the labor reallocation from manufacturing to services are two of the most remarkable stylized facts of the post-war period. Motivated by these facts, we propose a model of labor allocation across three sectors: goods, services and home...

Every year during the second and third quarters (the "hot season") housing markets in the U.K. and the U.S. experience systematic above-trend increases in both prices and transactions. During the fourth and first quarters (the "cold season"), housing prices and transactions fall below trend. A...

This paper studies the design of a recommender system for organizing social learning on a product. To improve incentives for early experimentation, the optimal design trades off fully transparent social learning by over-recommending a product (or “spamming”) to a fraction of agents in the...

We examine a repeated interaction between an agent, who undertakes experiments, and a principal who provides the requisite funding for these experiments. The repeated interaction gives rise to a dynamic agency cost—the more lucrative is the agent’s stream of future rents following a failure,...