Calvo-style models of nominal rigidities currently provide the dominant paradigm for understanding the linkages between wage and price dynamics. Recent empirical implementations stress the idea that these models link inflation to the behavior of the labour share of income. Galí, Gertler, and...

This paper analyses procurement when contractors have limited liability and when the sponsor cannot commit to any specific form of future negotiation. It shows that introducing limited liability enhances competition and thus the likelihood of bankruptcy. Among efficient auctions in which only...

This paper analyzes the evolution of an economy where growth is driven by increased specialization caused by the geographical expansion of markets. It proves that such Smithian growth exhibits generic threshold behavior. Below a critical density of transport linkages, the economy is split into...

Teachers and peers are believed to have a strong influence on student achievement, but the specific characteristics that affect student achievement are hard to identify. This paper utilizes teacher survey data to investigate teacher characteristics that are not usually available in...

We use rich brand level retail data to demonstrate that the firm size distribution in Carbonated Soft Drinks is mainly an outcome of the degree to which firms own a portfolio of brands across segments of the market, and not from performance within segments. In addition, while the number of firms...