Voucher privatization implies a significant wealth transfer from state to private agents who, in turn, would increase consumption. This paper investigates the consequences of this wealth effect on the macroeconomic equilibrium in a high unemployment economy. The model builds on a two-stage...

At the end of the nineties, many developing countries featured an open capital market and relied heavily on dollar-debt financing of their private sector. This paper analyses whether, in this context, adopting a clean floating exchange rate regime can be a sustainable policy choice. In the...

This article argues that in Euro-area economies, where the European Central Bank (ECB) cannot bail out financially distressed governments, the spending multiplier is adversely affected by the amount of public debt. A regression model on a panel of 26 EU countries over the last 16 years shows...

Humans often lie strategically. We study this problem in an ultimatum game with an informed proposer and an uninformed responder, where the former can send an unverifiable statement about his endowment. A simple message game with heterogenous players with respect to lying costs shows that in...

This paper introduces an experiment aiming to investigate the contribution of illiquidity risk to the total risk of a collective investment project. If implemented, the project succeeds with a known probability. Yet the project fails if the quota of investors is not reached in the first place....

This paper provides a dynamic analysis of the market for academic publications. Given imperfect information about journals' editorial line, authors can sometimes target a wrong journal; in turn, the editor will desk-reject their paper. An equilibrium is defined as a situation where both editors...

Many observers argue that one of the major causes of the 2007-2009 recession was the abnormal accumulation of risk by banks. This paper provides a signaling explanation for this race for risk. If banks' returns can be observed while risk cannot, the less efficient banks can hide their type by...

In this paper, we argue that firms' firing strategies and the judicial strategy of dismissed employees depend to a large extent on labor judges' ability to shed light on the various cases. The model is cast as a sequential game with imperfect information featuring firms, employees and labor...

This paper analyses the risk of default on public debt within a repeated game between the governement and private investors. The government has only an imperfect control over the stream of future revenues. In this case, a long sequence of adverse budgetary shocks may push the debt over its...