We study the role of endogenous healthcare choices by households to extend their expected lifetimes on economic growth and welfare in a decentralized overlapping generations economy with the realistic feature that households' savings are held in annuities. We characterize healthcare spending in...

The standard motivation for unemployment compensation is consumption smoothing and most papers in the literature have analyzed trade-offs involving consumption smoothing and moral hazard. This paper shows how such policy can increase output by enhancing the assignment of workers to jobs in the...

Optimal R&D and technology adoption is modeled when an agency is present. Shareholders collectively acting as a board take decision about R&D investment. The outcome of R&D efforts is a new cost of production and it is a private information to the manager. Managers will have to expend some...