In a two-sided search model, where the matching function is characterized by ex post match-specific heterogeneity and variable search intensity, the relative performance of search and hiring subsidies in terms of both cost effectiveness and aggregate efficiency is assessed.

This paper contains a model of waste elimination through design. It argues for the importance of managing design complexity in improving cost, quality, variety, and time-to-market performance varaibles. Management of design complexity is identified with creation, choice, and application of...

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates by fitting econometric models to data. Agents are uncertain about which model to fit and can choose from a class of models. Only some of the models in this class are consistent with...

Time-inconsistency can arise when a government attempts to convince private sector to use a particular alternative energy (gas, green electricity...) rather than petroleum products. By introducing taxes and feed-in prices, a government would encourage firms and households to switch to an...

The paper proposes a model to study the conditions under which complex networks emerge (or not) when agents are involved in a dynamic coordination setup. The focus, however, is not on the classical issue of equilibrium selection - instead, our aim is to shed light on how agents' efforts to...

This paper studies the effect of production volatility on the duration of temporary contracts. A simple theoretical model is developed, in order to depict the choice of contract duration made by a firm recruiting temps to deal with activity peaks. Assuming that the hiring of a new temp is...

The role of expectations for economic fluctuations has received considerable attention in recent business cycle analysis. We exploit Markov regime switching models to identify shocks in cointegrated structural vector autoregressions and investigate different identification schemes for bivariate...

Using panel structural VAR analysis and quarterly data from four industrialized countries, we document that an increase in government purchases leads to an expansion in output and private consumption, a deterioration in the trade balance, and a depreciation of the real exchange rate (i.e., a...

This paper evaluates the economic returns to improved households access to infrastructure, public services and land in the context of a large landmineclearance program in post-war Mozambique. The International Campaign to Ban Landmines production and use estimates that there are more than 80...