Based on differences in production costs, McLaren (1999) [“Supplier relations and the market context: a theory of handshakes”, Journal of International Economics 48, 121-138] demonstrates that informal ‘handshake’ arrangements foster cooperation in buyer-supplier relationships, compared...

The difficulty to allocate the right workers to the right jobs is an important source of market frictions. With the expansion of atypical jobs in the mid-1980’s, the idea that screening and flexibility could be complementary motivations arose. The purpose of this paper is twofold : (i) First,...

In this paper, we feature the optimal unemployment benefits financing scheme when the economy is subject to labor market failures characterized by search frictions and wages rigidity. We show how policy instruments should interact with labor market imperfections. The US unemployment insurance...

The aim of this paper is to study the properties of an optimal unemployment benefit financing scheme in the US and in France. We wonder if firms should be taxed in proportion of their layoffs and if such a tax should correspond to a part or all of the fiscal cost induced by a dismissal. The...

Standard small open economy models are often unsuitable to deal with the specific economic characteristics of emerging markets. In this paper we lay out a dynamic general-equilibrium model of an emerging small open economy in order to analyze the performance of alternative monetary policies. Our...