Comparing groups with respect to hypothetical constructs requires that the measurement models are equal across groups. Otherwise conclusions drawn from the observed indicators regarding differences at the latent level (mean differences, differences in the structural relations) might be severly...

Despite the empirical relevance of advertising strategies in concentrated markets,the economics literature is largely silent on the effect of persuasive advertisingstrategies on pricing, market structure and increasing (or decreasing) dominance.In a simple model of persuasive advertising and...

Advanced market economies are characterized by a continuous process of creativedestruction. Market forces and technological developments play a major role in shaping thisprocess, but institutional and policy settings also influence firms´ decision to enter, to expandif successful and to exit if...

In this paper, I present a theory of dynamic economic growth, business cycles, and asset pricing that integrates (1) Marx's idea (and emphasized by Klein) of a two-class heterogeneity of the ownership structure of physical capital and human capital in a capitalist society, (2) Keynes' idea of...

We study cross-country differences in the aggregate production function whenskilled and unskilled labor are imperfect substitutes. We find that there is a skill biasin cross-country technology differences. Higher-income countries use skilled labormore efficiently than lower-income countries,...

This paper introduces various sources of consumer heterogeneity in one-sector representative consumer (RC) growth models and develops tools to study the evolution of the distribution of consumptions, assets and incomes.[...]

Building a model with three imperfect markets – goods, labor and credit – representing aproduct’s life-cycle, we find that goods market frictions drastically change the qualitative andquantitative dynamics of labor market variables. The calibrated model leads to a significantreduction in...

Unemployment may depend on equilibrium in other markets than the labor markets. Thispaper adresses this old idea by introducing search frictions on several markets: in a model ofcredit and labor market imperfections as in Wasmer and Weil (2004), I further introducesearch on the goods market. The...

Rejuveniles are "grown-ups who cultivate juvenile tastes in products and entertain-ment". In this note, we study a standard AK growth model of overlapping gener-ations populated by rejuveniles. For our purposes, rejuveniles are old agents whoderive utility from "keeping up" their consumption...