Showing 61 - 70 of 121
We analyze an overlapping generations model which explicitly includes a secondary asset market. The economy is affected by a onetime shock which causes some of these assets to become toxic. As a response the government may intervene by buying these assets at market value and removing them from...
Persistent link: https://www.econbiz.de/10013128979
The Jewish and the Arab sectors in Israel differ widely in every aspect of their respective socio-economic status. In particular, investment in education is much lower in the Arab sector and so is the educational attainment. To explain these differences, we construct a simple model which allows...
Persistent link: https://www.econbiz.de/10012731851
What determines the direction of technological progress is one of the central questions that economics needs to answer. By introducing a small but fundamental generalization of Acemolgu (2002) the current paper points out the key determinants of that direction. The extended model argues that...
Persistent link: https://www.econbiz.de/10012954671
Based on a general growth model, this paper finds that the steady-state direction of technological progress is determined by the scale return of the production function and the relative factor supply elasticities. A specific version of that model extends Acemoglu (2002) to provide the underlying...
Persistent link: https://www.econbiz.de/10012860272
Persistent link: https://www.econbiz.de/10012658964
The article is concerned with understanding the impact of social preferences and wealth inequality on aggregate economic outcomes. We investigate how different manifestations of societal other-regarding preferences affect labor relationships and incentive contracts at the microeconomic level and...
Persistent link: https://www.econbiz.de/10013233935
The article is concerned with understanding the impact of social preferences on the optimal organizational design of firms. We consider a moral-hazard environment with inferiority averse workers. The integration of workers in one organizational unit yields productive complementarities but also...
Persistent link: https://www.econbiz.de/10013290457
We model the design of labor market institutions in an economy characterized by moral hazard and irreversible investment. In this setting the institutional design affects the bargaining power of labor. At the optimum, the allocation of bargaining power balances the aforementioned frictions. We...
Persistent link: https://www.econbiz.de/10012718833
Persistent link: https://www.econbiz.de/10012792467
The article is concerned with understanding the impact of social preferences and wealth inequality on aggregate economic outcomes. We investigate how different manifestations of other-regarding preferences affect incentive contracts at the microeconomic level and how these in turn translate into...
Persistent link: https://www.econbiz.de/10012421506