. By focusing on the right-to-manage wage bargaining we assume that wage is negotiated after the capital stock decision …. With Cobb-Douglas utility and production functions the steady state is unique and the steady state capital stock depends … state equilibrium is a saddle. -- Overlapping generations economy ; capital accumulation ; flexible wage negotiation …

two distinct distortions: i) taxes on capital and labour are the only available tax instruments for raising revenues, and … broad assumptions the two distortions create conflicting demands on the wage tax, while calling for a zero capital tax. By … combining the two distortions, we arrive at the conclusion that both instruments should be used, implying that the zero-capital …

two distinct distortions: i) taxes on capital and labour are the only available tax instruments for raising revenues, and … broad assumptions the two distortions create conflicting demands on the wage tax, while calling for a zero capital tax. By … combining the two distortions, we arrive at the conclusion that both instruments should be used, implying that the zero-capital …

The current extensive literature on irreversible investment decisions makes the assumption of constant interest rate … investment project. Given the generality of the considered valuation problem, we first provide a thorough mathematical … interest rate variability may have a profound decelerating or accelerating impact on investment demand depending on whether the …