This paper derives an optimal investment function that combines Tobin's q with Goodwin's nonlinear accelerator. It provides microfoundations to the backward looking behaviour of investment in Goodwin's model, and simultaneously allows the study of Tobin's q into a business cycle model.

This paper studies a differential game between authors and editors. Authors maximize the number of publications seeking to increase the impact of their work in the literature. Editors maximize the quality of papers they publish in order to increase the reputation of their journals. The game is...

This article examines the behaviour of a consumer diagnosed with diabetes. It is shown that the medical treatment of the disease creates incentives that make diabetic's consumption and wieght display cyclical patterns. One implication is that labour supply can be cyclical as well.

This paper presents productivity rankings of economics departments and economists in Brazil. The results are: 1) At individual level, only 9 out of 497 economists managed to publish at least one paper in the top journals of economics, and 52 economists published at least one paper in a wide list...

The paper discusses how the Peter and Dilbert Principles can occur and what are the consequences for a profit maximizing firm. A competence frontier is constructed as a linear combination of the maximum levels of technical and social skills that are difficult to measure and evaluate. The Peter...

We adapt the (Sidrauski, 1967) monetary model to study the hypothesis of anticipation of future consumption. We assume that anticipation of future consumption affects an agent's instantaneous utility and that all effects of future consumption on current wellbeing are captured by the stock of...

This paper studies the expulsion of Jews from Spain in 1492. This forced migration process is addressed with a model that blends demographic, religious and macroeconomic features. The optimal migration path is derived. It is shown that a large portion of the Sephardim community fled the country...

The purpose of this paper is to contribute a new model of the Gold Standard, focusing on the interaction between resource scarcity and demographics. In a dynamic micro-founded model we find that: i) prices and equilibrium gold holdings increase with population (a scale effect), but decrease with...

Following the Arab-Spring protests, we examine macroeconomic interactions between a productive firm and a rent-seeking government characterized by a continuous probability of regime shift. The model is able to rationalize the early growth leaps witnessed in many Arab economies (the “Social...

The Dominican Republic and Haiti share one island but display different economic and environmental paths. Policy decisions in the Dominican Republic aimed at protecting environmental resources help in explaining its better economic and environmental performance as compared to Haiti. The paper...