The purpose of this paper is to study the influence of the elasticity of capital-labour substitution and of the labour supply elasticity on the existence of multiple Pareto-ranked stationary eqilibria, local indeterminacy, bifurcations and expectations driven fluctuations in economies with...

We analyze the effects of simple stylized economic policy rules, or stabilization principles, when fluctuations in economic activity are created endogenously by self_fulfilling volatile expectations. We study a simple monetary competitive model with intertemporally optimizing agents and a...

In this paper we conduct an analysis of the effects of firing costs in models that consider simultaneously worker heterogeneity, imperfect information on their productivity and union power. We consider an OLG model where heterogeneous workers participate in the labour market both when young and...