In the perpetual youth overlapping-generations model of Blanchard and Yaari, if leisure is a normal good then some agents will have negative labour supply. We suggest a solution to this problem by using a modified version of Greenwood, Hercowitz and Huffman's utility function. The modification...

This paper contributes to the understanding of the linkages between exporting, labour demand, and wages in South Africa. We disentangle labour market differences between exporters and non-exporters and find that exporters employ more people and pay higher wages. Given these higher wages we...

We present field experimental evidence that limited information about workseekers' skills distorts both firm and workseeker behavior. Assessing workseekers' skills, giving workseekers their assessment results, and helping them to credibly share the results with firms increases workseekers'...

We present field experimental evidence that limited information about workseekers' skills distorts both firm and workseeker behavior. Assessing workseekers' skills, giving workseekers their assessment results, and helping them to credibly share the results with firms increases workseekers'...

A macromodel is constructed based on risk-averse, dynamically-optimising, wage-setting households. The money is set one period in advance, so that randomness in future fiscal policy causes randomness in future output. The mechanism is through increasing the demand for money and thence the...

A monetary overlapping generations model with oligopolistic imperfect competition is constructed. In general, output and employment are below their full employment levels. Three alternative expectations hypotheses are used - 'adaptive', 'monetarist' and 'pure rational' - all of which ensure no...

A stochastic two-period model of a small open economy with optimizing consumption and portfolio choice is constructed. Exchange rate risk means domestic-currency bonds are imperfect substitutes for foreign-currency bonds. Expectations are rational, i.e. subjective probability distributions equal...

We analytically examine output persistence from monetary shocks in a DSGE model with staggered prices or wages under a Taylor Rule for monetary policy. The best known such model assumes Calvo-style staggering of prices and flexible wages and is known to yield no persistence under a Taylor Rule....

We analytically examine output persistence from monetary shocks in a DSGE model with staggered prices or wages under a Taylor Rule. Surprisingly, while Taylor-style staggering never yields persistence, Calvo-style staggering of wages does generate persistence under decreasing returns to labour.