There are basically three stories about the globalisation-welfare state nexus. The first story argues that globalisation is the cause of the chronic crisis of the welfare state. As national economies open to the international market, governments are forced to adapt to the imperatives of global...

In this paper, we present a simple but rigorous model of the dynamics of output and unemployment in transition. We consider a worker-entrepreneur, who is "locked in" to her current production technique, with a choice of continuing to work with it or search for a better technique. If she...