We develop and analyze a structural model of effciency wages founded on reciprocity. Workers are assumed to face an explicit trade-off between the disutility of providing effort and the psychological benefit of reciprocating the gift of a wage offer above some reference level. The model provides...

We construct a dynamic competitive model with futures markets where price volatility comes from information arrival and noise trading. In this model, we address three issues: What does informational efficiency mean in a multi-period setting? How do information arrival and noise trading interact...

P A R T 1 - Introduction -- C H A P T E R 1 On the Role of Financial Markets and Institutions -- 1.1 Finance: The Time Dimension -- 1.2 Desynchronization: The Risk Dimension -- 1.3 The Screening and Monitoring Functions of the Financial System -- 1.4 The Financial System and Economic Growth --...