This paper shows how idiosyncratic shocks, macro-economic complementarities and a reallocation timing effect, can lead to multiple cyclical output equilibria. When reallocating labor from low productivity plants to high productivity plants takes time and effort which cannot be used for normal...

One of the main obstacles for successful economic development is the formation of institutional traps, inefficient yet stable norms of behaviour. Domination of barter exchange, arrears, corruption and black market activities are examples of institutional traps that have hampered reforms in...

We develop, both theoretically and experimentally, a stereotypical environment that allows for coordination breakdown, leading to a bank run. Three depositors are located at the nodes of a network and have to decide whether to keep their funds deposited or to withdraw. One of the depositors has...

Workers are embedded within a network of social relationships and can communicate through word-of-mouth. They can find a job either directly or through personal contacts. From this micro scenario, we derive an aggregate matching function that has the standard properties but fails to be...

We propose a theoretical framework for analyzing the problems associated to unilateral immigration policy in receiving countries and for evaluating the grounds for reform of international institutions governing immigration. We build a model with multiple destination countries and show that...

We study fiscal and monetary policy in a monetary union with the potential for rollover crises in sovereign debt markets. Member-country fiscal authorities lack commitment to repay their debt and choose fiscal policy independently. A common monetary authority chooses inflation for the union,...

This work is comprised of three essays that attempt to contribute to the task of reviewing the prevailing (solely market-based) contractual approach for sovereign debt restructuring. These essays particularly focus on aspects of intra-creditor coordination. Although the content of these essays...

This paper presents a small-scale agent-based extension of the so-called neo-Kaleckian model. The aim is to investigate the emergence of Harrodian instability in decentralized market economies. We introduce a parsimonious microfoundation of investment decisions. Agents have heterogeneous...

We build an agent-based model to study how coordination failures, credit constraints and unequal access to investment opportunities affect inequality and aggregate income dynamics. The economy is populated by households who can invest in alternative projects associated with different...

This paper presents a counterexample to the Miyagiwa (1991) claim that discriminatorygovernment procurement policy is ineffective as a protectionist device, when the goods are alsoconsumed by the private sector. The procurement sector is a homogeneous product Cournot-Nashduopoly, with a home and...