We develop a simple model of the interbank market where banks trade a long term, safe asset. We show that when there is a lack of opportunities for banks to hedge aggregate and idiosyncratic liquidity shocks, the interbank market is characterized by excessive price volatility. In such a...

In countries such as Germany, the legal system is such that firms are necessarily stakeholder oriented. In others like Japan social convention achieves a similar effect. We analyze the advantages and disadvantages of stakeholder-oriented firms that are concerned with employees and suppliers...

A comprehensive study of the linkages between demographic and economic variables should not only account for vintage specificity but also incorporate the relevant economic and demographic decisions in a complete optimal control set-up. In this paper, a methodological set-up allowing to reach...

I extend DeGraba's model of buying frenzies. I identify conditions under which buying frenzies are the only possible equilibrium and under which rationing occurs in equilibrium

Technological knowledge and organizational knowledge are distinguished in order to define economic competence formally. This definition is made operational in the simplest possible linear model of production. Productivity gains are shown to originate from changes in organizational capabilities...

This paper considers the dynamic evolution of algorithmic (recursive) learning rules in a normal form game. It is shown that the system - the population frequencies - is globally stable for any arbitrary N-player normal form game, if the evolutionary process is algorithmic and the "birth...

I analyze the reallocation of labor and human capital from the state sector to the nonstate sector and nonemployment in Russia. I use a nationally representative household data set, the Russian Longitudinal Monitoring Survey, to study sectoral mobility in two periods of transition using...

The effects of competition on growth are analyzed in the recent literature by comparing economies with the same market structure but different degrees of substitutability. In this note, we show that in a general equilibrium model with monopolistic competition à la Dixit-Stiglitz the effect of...

Using data from a large, U.S. federal job training program, we investigate whether enrolment incentives that exogenously vary the ‘shadow prices’ for serving different demographic subgroups of clients influence case workers’ intake decisions. We show that case workers enroll more clients...

While economists usually resort to redistribution between individuals of different skill levels and majority voting when explaining migration policies, the present political economy model of preferential trade and migration agreements suggests an alternative approach based on the following two...