The purpose of this paper is to answer the question: is it in the best interest of firms to introduce profit-sharing as an incentive for wage-earners to work harder? A theoretical model is developed, its results are compared with those of an empirical work, using a panel of 700 industrial firms....

In this paper, several models (perfect or imperfect competition, flexible or fix-price models) for the determination of the level and of the price of exports of manufactured goods are developed and estimated. A special interest is given to the link between the situation (price level and level of...

We discuss the effects on fiscal policies of monetary unification. We analyze the size of the inefficiencies due to the lack of coordination between fiscal authorities, and the interactions with monetary policies. We question the efficiency of the implementation of a maximum deficit rule like...

Endogenous cycles cannot emerge in one-sector monetary overlapping generations models when there is intertemporal substitutability, even if returns to scale are increasing. In this article, we show that the conclusions are different when there are two sectors. Considering a two-sector monetary...

In that article, a dynamic model for an open economy with flexible exchange rates is developed and used to study the efficiency of an increase in public expenditures in the long run, according to the way it is financed, as was as its long term effect on prices. The stability of the economy in...

A three country model (Germany, France, rest of the world) is used to evaluate the effects on the balance of payments, foreign debt, activity, prices and also interest rates and exchange rates of the economic and monetary unification of Germany and of its probable consequences: increase in money...

This article presents the foundations and the estimation of two models describing how firms determine the optimal expected paths of employment and of the capital stock when they face adjustment costs on both production factors. In the first model, firms are assumed to be always constrained on...

A theoretical model of the behavior of firms and employees focusing on demand expectations and profitability is built. This model is based on the existence of uncertainty concerning the level of future demand, and generalizes existing work on that subject by explaining consistenly prices,...

Stabilisation policies are seldom analyzed taking into account their effects on portfolio choices and capital accumulation and on the level of risk (bearing on interest rates, inflation...) in the economy. A vicious circle might indeed appear: stabilizing more the economy means more volatility...

Using simple theoretical models of endogenous growth, we analyze the effect of an increase in the minimum wage paid to unskilled workers on the optimal level of education (i.e., on the number of skilled workers), on the structure of production between traditional industries and those employing...