A group of firms issuing equity claims on its capital stock have all capital as an exhaustible resource. We introduce such firms into the set of n firms who have issued equities in the Capital Asset Pricing Model (CAPM) and observe how the interaction of demand for oil by users and demand for...

In this paper we provide new and convincing evidence on the presence and magnitude of feedback effects associated with 'make work pay' policies currently under consideration in the US, Canada, the UK and other developed countries. We build a general equilibrium model of the labor market and use...

An environment capable of generating both counter- and procyclical movements in markups through the interaction of opposing factors is considered. This framework can account for observed variations in the cyclical behavior of markups across industries. Technology shocks and endogenous labor...

We employ a sample of Ontario paid workers from the 1981 Survey of Work History to compute three alternate sets of wage function coefficient estimates for four groups: unionized and nonunionized private sector workers, and unionized and nonunionized public sector workers. The derived estimates...

It is remarkably easy to test for structural change, of the type that the classic F or "Chow" test is designed to detect, in a manner that is robust to heteroskedasticity of possibly unknown form. This paper first discusses how to test for structural change in nonlinear regression models by...

This paper reports an endeavour to bring together two strands of research on the migration of population within countries. The identification and measurement of differentials in migration among population groups of varying characteristics has received considerable attention from demographers....

This paper studies the effect that a labour market for older workers will have on the ratchet effect. Even though we assume that the information on worker type that a firm obtains will not be transmitted to the other firms, the presence of the ex post labour market eliminates the ratchet effect....

This paper derives optimal commodity taxes in a two-class economy, based on Chaudhuri (1986) and Diamantaras and Thomson's (1990) λ-equitability. An allocation is λ-equitable if no agent envies a proportion λ of the bundle of any other agent. We examine the properties of Pareto undominated...

This research considers the positive theory of monetary integration in a general equilibrium monetary model of the world economy. The analysis demonstrates that, in the face of uncertainty and incomplete asset markets, participation in a monetary union may be welfare improving since it...