We estimate the macroeconomic benefits and international spillovers of an increase in competition using a general-equilibrium simulation model with nominal rigidities and monopolistic competition in product and labor markets. We draw three conclusions after calibrating the model to the euro area...

Interest in economic policy and performance in Iran under the Islamic Republic remains vigorous two decades after the Revolution. Since 1979, Iran has undergone important socio-economic and institutional changes and has been affected by significant economic and political upheavals. This paper...

In this paper, the author separates the economic from the psychological aspects of labor market behavior and argues that the psychological ones deserve careful study.

Experimental psychology provides a drastically different picture of human abilities, motives, and behavior from that which predominates economic analyses. Individual preferences are normatively assumed to be well-ordered and consistent, but descriptively shown to be inconsistent and malleable....

An explanation of how irreversible investment and the techniques associated with pricing real options can apply to a broad range of problems in finance, macroeconomics, and trade policy.

Economic policymakers attempt to improve the welfare of their citizens, based on assumptions about how people think, feel, and behave, and on what they view as welfare-improving. Economists usually describe economic agents as fully informed and model them as striving to maximize a set of stable...