This study investigates how the trade duration-based intensity modifies the first-order autocorrelation and the transitory variance of the trade process. Because prices are conditional expected values, a structural model in which the trade duration represents the rate at which prices incorporate...

Temporary layoffs are an important feature of North American and European labor markets. This article presents an asymmetric information model of layoffs that explicitly considers the possibility of recall. In this model, high-productivity workers are more likely to be recalled to their former...

The effect that time spent caring for childrenhas on the probability of continued self-employment in Europe is examined. Thisis a subject of interest for policy makers concerned with encouragingself-employment by women. It is commonly argued that one reason persons, andespecially women, choose...

A notable feature of post-World War II civil wars is their very long average duration. We provide a theory of the persistence of civil wars. The civilian government can successfully defeat rebellious factions only by creating a relatively strong army. In weakly-institutionalized polities this...

This paper estimates the return to education using two alternative instrumental variable estimators: one exploits variation in schooling associated with early smoking behaviour, the other uses the raising of the minimum school leaving age. Each instrument estimates a 'local average treatment...

In early 2004, we published a paper which described a simple model of asset allocation for pension plans that incorporated the concept of equity duration. We believe that a diversified portfolio of equities and bonds can be immunized and lower the risk of deficits.Akin to the well-known concept...

A semi-Markov model of turnover, resulting from optimizing behavior on the part of workers, is developed. Duration dependence in the transition out of employment is modelled as resulting from a layoff probability which decreases with tenure. Some preliminary results, based on DIME data, are...

This paper investigates whether cannabis use leads to worse mental health. To do so, we account for common unobserved factors affecting mental health and cannabis consumption by modeling mental health jointly with the dynamics of cannabis use. Our main finding is that using cannabis increases...

This paper theoretically studies and empirically estimates (1) how spousal labor supply affects bargaining between the husband and wife over their private consumption, and (2) the impact of this intrahousehold bargaining on their reservation wage and unemployment duration. We consider a model of...

The paper explores the impact that equity duration has on the observed cross section of realized returns by decomposing standard market wide BE/ME into two separate components; stationary and time varying. Separation is achieved though grouping firms into their appropriate industries and...