This paper estimates a DSGE model with many types of shocks and frictions for both the US and the euro area economy over a common sample period (1974-2002). The structural estimation methodology allows us to investigate whether differences in business cycle behaviour are due to differences in...

Empirical studies on information communication technologies (ICT) typically aggregate the informationʺ and communicationʺ components together. We show theoretically and empirically that these have very different effects on the empowerment of employees, and by extension on wage inequality. If...

There is a widespread sense that over the last two decades firms have been decentralizing decisions to employees further down the managerial hierarchy. Economists have developed a range of theories to account for delegation, but there is less empirical evidence, especially across countries. This...