The Solow condition is examined in an intertemporal model that blends the shirking and the turnover models of efficiency wages with managerial supervision. It is shown that the Solow condition does not hold when shirking and turnover costs are considered. The Solow condition can be a possible...

Several empirical studies report the existence of declining terms of trade between commodities and manufactures, supporting the Prebisch-Singer hypothesis. As globalisation leads to greater integration of markets, we ask if in a fully integrated economy the terms of trade will display the same...

Work ethics affect labour supply. This idea is modelled assuming that work is habit forming. We introduce working habits in a neoclassical growth model and compare its outcomes with a model without habit formation. In addition, we analyse the impact of different forms of technical progress. The...

This paper develops a game where the government pursues an optimal monetary policy, monopolistic trade unions set nominal wages, and firms (domestic and multinationals) choose the levels of employment and output in the economy. Employment, output, and nominal wages are affected by the nominal...

High-skill immigrants form networks that facilitate subsequent low-skill immigration. To minimize the effects of low-skill immigration on unemployment, a strict lean-against-the-wind strategy or a flexible lean-against-the-wind strategy that is supported by, and takes into account the effect of,...

Witchcraft is one of the manifestations of envy. It has disruptive effects on team work. A fold catastrophe is shown to exist between the degree of envy and the productivity of the witch's victim. The big eye effect is the discontinuous dip in productivity, driven by an increase in envy. There...

This note presents wide evidence on the relationship between population and income for 125 countries for which data was available for the period 1950-2000. The main result is that there is a weak but negative relationship between population growth and per capita GDP, as income increases...