This paper determines the optimal level of firm-specific training and the optimal level of layoffs when some workers are unreliable in that they may receive and accept offers from outside the firm; more specifically, the paper determines the evolution of firm-specific training and layoffs as a...

One traditional argument in favor of bank reserve requirements holds that since a b ank and its depositors are asymmetrically informed as to the bank's reserve position and its portfolio, the bank will hold too few reserves and too risky a port folio. This being the case, presumably a central...

This paper investigates a model of military conflict between two regimes in which each may initiate combat in order to confiscate resources from the other. Conflict, or the potential for same, results in wasteful military spending which lowers growth for each regime. Equilibrium military...