This paper examines the preferences of a foreign firm and awelfare-maximizing host country government over two modes of foreigndirect investment (FDI): de novo entry by the foreign firm andacquisition of the domestic incumbent. Two crucial features of the modelare the presence of network...

We incorporate a wage-bargaining structure in a dynamic general equilibrium model and show how this feature changes short- and long-run properties of equilibria compared with a perfectly competitive setting.We discuss how employment, capital and income shares respond to wage-setting shocks and...

This paper analyses the emergence of the informal economy in the environment characterised by non-competitive labour markets with wage bargaining. We develop a simple extension of the standard search model à la Pissarides (2000) with formal and informal sectors to show how a government’s...

This paper analyses information from survey data collected in the framework of the Eurosystem’s Wage Dynamics Network (WDN) on patterns of firm-level adjustment to shocks. We document that the relative intensity and the character of price vs. cost and wage vs. employment adjustments in...

The thesis analyzes monetary and labor policies under different market frictions. In the first part several versions of a microfounded dynamic general equilibrium model with monopolistic competitors in the product and/or labor market are derived and simulated. First of all, the monetary...

This paper examines the justifications, history, and practice ofregulation in the US telecommunications sector. We examine the impact oftechnological and regulatory change on market structure and businessstrategy. Among others, we discuss the emergence and decline of thetelecom bubble, the...

We propose a general model of imperfect competition among multi-productfirms, the consumption of whose goods yields externalities from oneconsumer to another. We extend the allocation approach of Weyl (2010)'smonopoly model, proposing a solution concept, Insulated Equilibrium,that allows for...

This paper investigates the results of competition between two profit-seeking telecommunications carriers, as might occur when cable TV providers compete with local exchange carriers. Each firm has a fixed capacity that it can use to offer two different services, such as telephony or video. We...