Using panel data of public unemployment expenditure as a percentage of GDP of 34 OECD nations across year 1980-2010, I explore the effect of this ratio on three unemployment outcomes: total unemployment rate, long-term unemployment rate and youth unemployment, as well as labor participation rate...

This study uses a two-way fixed effect model for panel data of all OECD nations, which includes most of the determinants of growth in previous empirical growth studies for either cross section or panel data as control variables and carefully checks possible endogeneity of the key variables of...

Using a dynamic panel model and two estimators: Arellano-Bond estimator and Arellano-Bover/Blundell-Bond system estimator, this paper provides empirical evidences to support the hypothesis that expenditure on entitlement programs increases voluntary and involuntary unemployment, decreases labor...

To examine the interaction between buyer power and competition intensity in a downstream market, we construct a model in which oligopolistic retailers compete in quantity in the downstream market and one of them is a large retailer that has its own exclusive supplier. We demonstrate that an...

This paper tests economic impacts of labor market institutions on employment of OECD nations from the perspective of long-term unemployment rate (LUR) in order to alleviate endogeneity bias existed in the current literature on this topic, which is the root of the long-lasting debate over...

This paper studies the econometric relationship between labor productivity and tax wedge by using two-stage least square (TSLS) fixed effect model on two panel data of OECD countries to address endogeneity problem. I use two response variables, i.e., the growth rate of GDP per hour worked and...

Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this hypothesis in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant and...

We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the...

This paper reports data from a laboratory experiment on two-period moral hazard problems. The findings corroborate the contract-theoretic insight that even though the periods are technologically unrelated, due to incentive considerations principals can benefit from offering long-term contracts...

We study a continuous-time game of strategic experimentation in which the players try to assess the failure rate of some new equipment or technology. Breakdowns occur at the jump times of a Poisson process whose unknown intensity is either high or low. In marked contrast to existing models, we...