This paper develops a lean-against-the-wind rule for setting low-skill immigration quota. The construction of this rule takes into account the factors governing the supply of and demand for low-skill immigrants, illegal immigration, border enforcement and the host-country's level of unemployment.

The paper analyzes the effects of the minimum wage over the other wages in Brazil using a bargaining framework. The key result is that the minimum wage precedes the market wage in the period 1980-85 while there is simultaneous determination in the period 1986-93.

This paper studies the controversy around the readmission of the Jews to England in 1655-6. Only the economic argumens are considered. They are constrasted with the mercantilist model of Breams (1986). It is shown that some of the arguments in favour and against the readmission are according to...

This paper analyses the dynamic relationship between the degrees of indexation of wages and public bonds in Brazil. A simple model is constructed to show that both degrees of indexation are determined simultaneously. We apply cointegration techniques and estimate error-correction representations...

This paper adapts the Ethics of Spinoza into the Ramsey growth model and shows that the way people conceive and understand life, related to emotions of joy and sorrow, affects economic performance. The model has multiple equilibria: The Spinoza solution, optimism, leads to greater capital...

A smaller than 1 Tobin's q has been frequently observed for the postwar U.S. economy. In theory, Tobin's q less than 1 would discourage investment. However, actual capital stock has grown during this period. This paper proposes inflation besides Schumpeterian innovation as an explanation for...

This paper studies the effects of capital and labor mobility on real wages across Mexican states for the period 1997-2006. Employing dynamic panel data methods, we find: (1) strong positive effects on real wages from foreign direct investment (FDI) and from migration; (2) domestic and foreign...

This paper represents the first attempt to formalise the relationship between remittances inflow and social violence by developing a model which predicts that migrants’ remittances would lead to the reduction of social conflict in the recipient economy under the condition that remittances...

We adapt the (Sidrauski, 1967) monetary model to study the hypothesis of anticipation of future consumption. We assume that anticipation of future consumption affects an agent's instantaneous utility and that all effects of future consumption on current wellbeing are captured by the stock of...

This note shows that introducing into the economy a few number of agents who do not support sunspots theories magnifies endogenous business cycles fluctuations when the current state of the economic system is sensitive enough to traders' forecasts, or equivalently, in presence of indeterminacy.