In this paper we conduct a Monte Carlo study to determine the power of Pearson’s overall goodness-of-fit test as well as the “Pearson analog” tests (see Anderson (1994)) to detect rejections due to shifts in variance, skewness and kurtosis, as we vary the number and location of the...

This paper estimates the impact of the introduction of the UK minimum wage on the working hours of low-wage employees using difference-in-differences estimators. The estimates using the employer-based New Earnings Surveys indicate that the introduction of the minimum wage reduced the basic hours...

We use a model of sequentialduop oly to examine the effect of verticalo wnership structure on firms’ outputs and profit shares in the internationalmark et for raw and processed tropicaltim ber products. The modelpro vides insights that can be applied to the Indonesian logging and plywood...

This paper studies a strategic aspect of profit-sharing in an oligopolistic industry with a monopoly union. Whenever a uniform profit share exists in the industry, we show that a union that values the per worker remuneration positively, may have incentives to reduce industry employment,...

This study intends to provide an empirical answer to the question of whether Maastricht and SGP fiscal rules have affected growth of European Union countries. A growth equation augmented with fiscal variables and controlling for the period in which fiscal rules were implemented in Europe is...

The basic theorem of welfare economics tells us that, under standard assumptions, the first best can be achieved as a competitative equilibrium with zero taxes on commodities and the appropriate lump sum tax for each individual. the calculation of the appropriate set of lump sum taxes requires...

Monopsony Power in the labour market is shown to have important consequences for comparisions between Illyrian labour-managed firm (LMF) and a profit maximising capitalist firm (CF) operating in the same markets with the same technology. If the CF earns positive profits then workers earn more in...

The paper studies the theory of optimal intervention in an economy with trade unions. It is shown that the traditional remedy, a flat employment subsidy in the union sector, cannot produce a first-best welfare optimum. But non-linear wage and employment subsidies can generate a full social...