We compare the performance of markets and tournaments as allocative mechanisms in an economy with borrowing constraints … constraints are present, however, tournaments dominate markets in terms of aggregate output and, for sufficiently powerful … different qualities). With perfect capital markets both mechanisms achieve the efficient allocation, though markets generate …

. Exams dominate markets in terms of matching efficiency. Whether aggregate consumption is greater under exams than under …This paper examines the properties of exams and markets as alternative allocation devices under borrowing constraints … markets depends on the power of the exam technology; for a sufficiently powerful test, exams dominate markets in terms of …

. Exmas dominate markets in terms of matching efficiency. Whether aggregate consumption is greater under exams than under …This paper examines the properties of exams and markets as alternative allocation devices under borrowing constraints … markets depends on the power of the exam technology; for a sufficiently powerful test, exams dominate markets in terms of …

This paper develops a tractable extension of a Mortensen-Pissarides style matching model that allows for risk averse … optimal long-term contracts to attract risk averse workers facing limited access to asset markets. A simple analytic …

) displays an inverted U-shape as a function of the borrowing limit. In infinite horizon economies with incomplete markets we …

) displays an inverted U-shape as a function of the borrowing limit. In infinite horizon economies with incomplete markets we …

stochastic investment opportunity set and incomplete financial markets, when agents have power utility over both intermediate …

) displays an inverted U-shape as a function of the borrowing limit. In infinite horizon economies with incomplete markets we …

of job search with aggregate productivity shocks, where i) workers face incomplete markets, and ii) wages are determined … a simple representation as a small system of differential equations. Incomplete markets amplify fluctuations in …