This paper investigates the relevance of the No-Ponzi game condition for public debt (i.e. the public debt growth rate has to be lower than the real interest rate, a necessary assumption for Ricardian equivalence) and of the transversality condition for the GDP growth rate (i.e. the GDP growth...

The role of macroeconomic policy in the different varieties of capitalism has been largely ignored. Recent contributions to the literature have argued that nonliberal economies should be expected to have less accommodating (i.e., less countercyclical) macroeconomic policies than liberal...

According to Efficiency Wage Theory, firms should devote resources to increase their workers' productivity either by allocating to employees efficiency wages or by using managerial staff in order to monitor workers. Drawing on the Shapiro-Stiglitz setting, we propose a theoretical model that...

Recent contributions to the Variety of capitalism literature have argued that nonliberal economies should be expected to have less accommodating macroeconomic policies than Liberal Market Economies (LMEs). Using Time Series Cross Section data on 16 OECD countries between 1980 and 2002, we test...