This paper tests for the existence of market power in banking, using data on demand deposit rates of households and corresponding market rates in five euro area countries. An implicit measure for market power is based on a partial adjustment model that also allows for an asymmetric response of...

Most models of labor markets and (un)employment neglect how competition among firms or sectors of the economy affects their hiring of workers and working times. Our approach pays special attention to such effects by proposing a complex stage game where firms invest in capital equipment before...