We analyze how frictions in the labour market influence the accumulation of general human capital. We find that investments in human capital benefits future employers, and that this positive externality leads to under-investments in human capital, and possibly top multiple, Pareto rankable...

In many regulated industries labour uions are strong and there is clear empirical evidence of labour rent-sharing. We study optimal regulation in a model in which wages are determined endogenously by wage bargaining at the firm level. Compared to the case in which wages do not depend on the...

We introduce strategic wage bargaining in a search equilibrium model. We find that wages respond more an employment and output less to aggreagte shoks than when wages are determined by conventional Nash bargaining. Expectations about the stocks increase the volatility of wages even more.

We show how increased competition in a media market may have implications for the competition between firms that are advertising in that medium. We apply a simple model of a product market with network externalities where firms buy advertising space in a media market and find that there is more...

We develop a framework for analyzing national income accounting using a revealed welfare approach that is sufficiently general to cover, e.g., both the standard discounted utilitarian and maximin criteria as special cases. We show that the basic welfare properties of comprehensive national...

The present study applies a particular econometric framework which allows for complex non-convex budget sets, highly non-linear labor supply curves and imperfect markets with institutional constraints. A married couple version of the model is estimated on Italian microdata. The empirical results...