We analyze the effects of the unemployment benefit system on the economy. In particular, we focus on both the tax structure and the unemployment benefits composition. We show that if the unemployment benefit system is only paid by firms, then employment and production are maximized. Moreover,...

The purpose of this paper is to analyse the impact of the unions' bargaining power on production and wages. In our model a competitive final good is produced from two substitutable intermediate goods. One of them is produced in a unionized unskilled sector and the other in a unionized skilled...

We analyze a pure bargaining problem when decisions require simple majority and self interested players make unilateral demands. In contrast to the case where proposals consist of complete sharing profiles, this content of proposals prevents implicit side-payments inside the committee, and so...

We analyze a multi-issue bargaining model where the joint production of public goods is budget-constrained. The players must decide the part of the budget that is dedicated to produce any public good. We model the decision process as an alternating offer bargaining game with random proposers....

The goal of this paper is to study the effects of centralized and decentralized bargaining patterns on wage inequality when there are two different types of labor, skilled and unskilled. We present two models where labor is specialized between firms, that is, there are two types of firms, each...

In this paper we explore the proposition that in economies with imperfect competitive markets the optimal capital income tax is negative and the optimal tax on firms profits is confiscatory. We show that if the total factor productivity as well as the measure of firms or varieties are endogenous...

This paper analyzes the welfare effects of altruism on the optimal fiscal policy. The existence of positive bequests links present and future generations in the economy. We show that these altruistic links provide a new role for indirect taxation (consumption and estate taxes) with important...

This article examines the properties of the optimal fiscal policy in an economy with warm-glow altruism (utility interdependence) and heterogeneous individuals. We propose a new efficiency concept, D-efficiency, that considers an implicit constraint in the act of giving: donors cannot bequeath...