This paper focusses on the reallocation of labour resources in a New Keynesian environment with labour market search and endogenous separations. We show that introduction of variation in hours per worker alters the incentives for intertemporal substitution in a way that generates a more steeply...

An important theme of modern contract theory is the role contracts play to protect parties from the risk of holdup and thereby encouraging their relationship specific investments. While this perspective has generated valuable insights about various contracts, the underyling models abstract from...

We analyze a continuous-time bilateral double auction in the presence of two-sided incomplete information and a smallest money unit. A distinguishing feature of our model is that intermediate concessions are not observable by the adversary: they are only communicated to a passive auctioneer. An...

Many production processes yield both good outputs and undesirable ones (e.g. pollutants). In this paper, we develop a generalization of a stochastic frontier model which is appropriate for such technologies. We discuss efficiency analysis and, in particular, define technical and environmental...

We point out that Bayesian inference on the basis of a given sample is not always possible with continuous sampling models, even under a proper prior. The reason for this paradoxical situation is explained, and linked to the fact that any dataset consisting of point observations has zero...

This paper documents cydical asymmetries in the aggregate activity of Uk industrial and commerical companies. It then investigates teh ability of a model of aggregate activity based on heterogenous actions under coc-convex adjustment at the individual level to account for thsi feature. Aggregate...

This paper compares the trading costs for institutional investors who are subject to liquidity shocks, of trading in auction and dealer markets. The batch auction restricts the institutions' ability to exploit informational advantages because of competition between institutions when they...