This paper looks at a general equilibrium model in a setting with indivisible consumer goods, product market power and a labor market distortion. The labor market distortion is due to wages being independent of ability in the indivisible good sector. This independence could be due to a...

In this paper, we show that lumpy consumer durables and market power can generate endogenous cycles consistent with the facts. Past sales determine the current market size of durable goods. Larger past sales, ceteris paribus, thus, naturally, result in a smaller current market size and income....

This paper develops a model with three key features: a factor market distortion, monopoly power in the product market, and indivisibilities in consumption. We show that in this setting, there are multiple equilibria: one with high and the other with low equilibrium wages, incomes and output....

This paper shows that lumpy consumer durables and market power can generate endogenous cycles consistent with the facts. Past sales determine the current market size of durable goods. Larger past sales, ceteris paribus, thus naturally result in a smaller current market size and income. In this...

This paper develops a model with three key features: a factor market distortion, monopoly power in the product market, and indivisibilities in consumption. We show that in this setting, there are multiple equilibria: one with high and the other with low equilibrium wages, incomes and output....

We develop a model with three key features: a factor market distortion, monopoly power in the product market and indivisibilities in consumption. In this setting, multiple equilibria arise, one with high and the other with low equilibrium wages, incomes and output. It is also shown that even in...

This paper shows that lumpy consumer durables and market power can generate endogenous cycles consistent with the facts. Past sales determine the current market size of durable goods. Larger past sales, ceteris paribus, thus naturally result in a smaller current market size and income. In this...

In this paper we provide some evidence that repeat taking of competitive exams may reduce the impact of background disadvantages on educational outcomes. Using administrative data on the university entrance exam in Turkey we estimate cumulative learning between the first and the nth attempt...

What do applicants care about when choosing a school in Turkey? Are their preferences vertical or horizontal? Which school attributes seem to matter? Do selective schools con-tribute to their students' success, or is their performance attributable to the higher ability of the students they...

This paper explains the differential impacts of trade on countries in terms of institutional differences which result in factor market distortions. We modify the Ricardian, Specific Factor and Hecksher Ohlin models of trade to capture these. Trade has both terms of trade effects and output...