We propose a framework for assessing the existence and quantifying the effect of threshold effects in cross-country growth regressions in the presence of model uncertainty. The method is based on Bayesian model averaging tech- niques and generalizes the Bayesian Averaging of Classical Estimates...

This paper analyzes whether in institutional structures on capital markets contribute to explaining why some OECD-countries, in particular the Anglo-Saxon countries, have been much more successful over the last two decades in producing employemt growth and in reducing unemployment than most...

This paper shows that the double marginalization problem signicantly underestimates the ineciencies arising from vertical relations in markets where consumers who are uninformed about the wholesale arrangements be- tween manufacturers and retailers search for the best retail price. Consumer...

Sender–receiver models in the style of Lewis (1969), Hurford (1989), or Nowak and Krakauer (1999) can be used to explain meaning of signals in situations of cooperative interaction. Importantly, meaning here is not an ex–ante concept, but arises as an equilibrium property of a game. A...

The core-Walras equivalence problem for an atomless economy is considered in the commodity space setting of Banach lattices. In particular, necessary and sufficient conditions on the commodity space in order for core-Walras equivalence to hold are established. In general, these conditions can be...

Much empirical lierature dealing with the competitive environment hypothesis tends to find nonstationary behaviour and very high persistence in time series of company profits. We model profit time series using a simple time series model that allows for nonstationary behavior over subsamples, but...

A distinction between individual and communal aspects of social capital is introduced, and their roles in production explored. Contacts are required to transact. contact formation and replacement are mediated by either market institutions or, less efficiently, by informal networks. Replacement...