This paper aims to unravel the competing effects of the health investment. It explores, both analytically and numerically, the equilibrium shift and transitional dynamics after a one-time policy of health investment. We find that such a policy improves health status in the long run, but harms...

Two macro models - one for a closed economy and the other for a small open economy - are used to examine the scope for income redistribution and employment creation. In particular, the introduction of both a guaranteed annual income (basic income) and an employment subsidy are examined, and...

We analyze some macroeconomic implications that follow from the fact that people tend to consume higher-quality goods as their incomes rise. The model involves two sectors: one producing a homogeneous good and the other producing a product with variable levels of quality. Both sectors use...

'... the volume constitutes an important collection, which portrays the evolution of the Phillips Curve and the potency of policy debates in a single canvas in an elegant and comprehensive manner. The gaps that seem to have remained may be remedied by the editors in the form of a companion...

We extend the study of efficiency‐wage environments via laboratory experiments in three ways. First, we introduce exogenous shocks that increase the opportunity for rejection of the gift‐exchange outcome. These additional tests emerge since we carefully derive a series of theoretical...

This important textbook offers a comprehensive look into the two main traditions in contemporary macroeconomics – New Classical and Keynesian – and examines the work of economists who have drawn on principles from both traditions to form a new, integrated approach known as New Neoclassical...

Blinder has suggested that wages be partially tied to a firm's own price change, so that the key feature behind Weitzman's profit-sharing proposal might be created without the same need for fundamental institutional change. We examine whether this proposal for labor's remuneration yields the...

Concern about globalization has rekindled interest in a longstanding issue--the implications for macroeconomic stability of alternative monetary/exchange-rate policies. This paper re-examines the issue, and it assesses the robustness of several recommendations by comparing the results of a...