This paper demonstrates that factors which impede labour market adjustments can have first-order impacts on aggregate output and social welfare. While several studies find that individual workers can face large and persistent sectoral reallocation costs, this paper shows that these costs are...

This paper develops an equilibrium search and matching model to jointly study the aggregate, sectoral, and distributional impacts of labour adjustment. The model extends Pissarides (2000) to include multisector production and search and "innovation" from investments that can potentially improve...

This paper studies the fiscal rules used by Canadian provincial governments during 1981-2007, by employing various empirical approaches including panel regressions, instrumental variables, and difference-in-difference estimators. The results suggest that the type of fiscal rule matters, as...