Given persistenly high unemployment rates following the 1991-92 recession, the question of hysteresis in the Canadian economy has, once again, come to the forefront of academic and polciy debate. The paper addresses two questions. First does the inclusion of the 1991/1992 recession, and the...

This paper develops the minimal asymptotic distributions for estimators of panel data models with incidental parameters.

This paper investigates the impact of program budget size on monitoring and competitive bidding in the public sector. A sequential game is developed involving a ministry and bureau strategically interacting in the provision of a public sector good. The ministry copes with imperfect information...

We introduce an element of centralization in a random matching model of money that allows for private liabilities to circulate as media of exchange. Some agents which we identify as banks, are endowed with the technology to issue notes and to record-keep reserves with a central clearinghouse,...

Because labor quality changes over the business cycle,the cyclicality of aggregate wages cannot reflect the true cyclical behavior of the price of labor inputs. To control for changes in labor quality, many researchers have examined the cyclical behavior of the price of labor inputs using...

This paper studies the impact of the preferential tax treatment of housing capital in a model economy that includes the main housing tax provisions currently in place in the U.S. and a minimum downpayment requirement upon purchasing non-divisible houses. Distortions arise because the tax code...