This paper generalizes the original random matching model of money by Kiyotaki and Wright (1989) (KW) in two aspects: first, the economy is characterized by an arbitrary distribution of agents who specialize in producing a particular consumption good; and second, these agents have preferences...

In this paper we estimate wage equations for the Spanish industry using time series data on 85 industrial sectors, which allows us to distinguish between aggregate and sector specific effects in wage determination. Industry wages respond mainly to economy wide labour market conditions and to a...

This paper illustrates the philosophy which forms the basis of calibration exercises in general equilibrium macroeconomic models and the details of the procedure, the advantages and the disadvantages of the approach, with particular reference to the issue of testing ``false'' economic models. We...

This paper extends existing insurance results on the type of insurance contracts needed for insurance market efficiency to a dynamic setting. It introduces continuosly open markets that allow for more efficient asset allocation. It also eliminates the role of preferences and endowments in the...

We study the earnings structure and the equilibrium assignment of workers when workers exert intra-firm spillovers on each other. We allow for arbitrary spillovers provided output depends on some aggregate index of workers' skill. Despite the possibility of increasing returns to skills,...

This paper formally examines the implications of international consumption risk sharing for a panel of industrialized countries. We theoretically derive the international consumption insurance proposition in a simple setup and show how it should be modified in more complicated models. We...

The Person Trade-Off (PTO) is a methodology aimed at measuring the social value of health states. The rest of methodologies would measure individual utility and would be less appropriate for taking resource allocation decisions. However few studies have been conducted to test the validity of the...

For most of the post-war period, Europe’s capital markets remained largely closed to international capital flows. This paper explores the costs of this policy. Using an event-study methodology, I examine the extent to which restrictions of current and capital account convertibility affected...