Starting a firm with expansive potential is an option for educated and high-skilled workers. this option serves as an insurance against unemployment caused by labor market frictions and hence increases the incentives for education. We show within a matching model that reducing the start-up costs...

This paper models asset markets as a game where assets pay according to an arbitrary payoff matrix,investors decide on fractions of wealth to allocate to each asset,and prices result from market clearing. The only pure-strategy Nash equilibrium is to split wealth proportionally to the...

A distinguishing feature among households is whether adult members work or not, since the employment status a?ects a household’s available time for home activities. Using a survey method in two countries, Belgium and Germany, we provide household incomes that retain the level of well-being...

The paper studies the core-Walras equivalence problem in the commodity space framework of Banach spaces, allocations being defined as Pettis integrable functions. In particular, a core-Walras equivalence result for a certain class of commodity spaces is established, without requiring that the...

We incorporate a wage bargaining structure in a dynamic general equilibrium model and show how this feature changes short and long-run properties of equilibria compared with a perfectly competitive setting. We discuss how employment, capital, and income shares respond to wage setting shocks and...