A shift in the correlation structure of U.S. macroeconomic series has been documented by Galí and Gambetti (2009) with corresponding changes in the dynamic responses to shocks. We provide an explanation of these findings based on the observed change in the structure of labor compensation and,...

Keynes’s dynamic, open-end approach to money-wage flexibility is contrasted with the subsequent rehabilitation of the static analysis of the problem, which has led to the ‘closure’ of the Keynesian system and the vindication of the economy’s capacity for...

The contribution of this paper to the social capital literature is twofold. Drawing on the Italian data, it firstly develops a new framework for measurement, allowing to build indicators for five different components of the multidimensional concept of social capital. Secondly, it provides a...

During the last forty years, general equilibrium theorists have been especially concerned with the analysis of economies in which forward markets for commodities are limited in number or nonexistent and trade takes place sequentially over time. Many distinguished scholars approached the study of...

This paper describes a price game in which buyers’ decisions about how much and where to buy are based on different information and/or preferences. Such consumers’ behavior is likely when demand comes from public agencies and state-owned firms. Consumers in this case are said to be...

Modern economies devote a relevant share of their resources to education. However, even among industrialised countries, there are di􀀞erences in the traits of the education system and in its outcome in terms of human capital composition. The question we pose in this paper is why the...

The empirical literature using large international students’ assessments tends to neglect the role of school composition variables in order not to incur in a misidentification of peer effects. However, this could lead to an error of higher logical type since the learning environment...

This paper proposes a stylized two-period two-country OLG model illustrating the potential role played by the nationality of investors on the incentives for a government to renege on its domestic debt. The two countries belong to a Monetary Union where monetary policy is decided by the...

It is suggested that individual behavior under ambiguity, or knightian uncertainty, may represent an alternative explanation for contractual incompleteness with respect to the traditional approach in terms of transactions costs. This paper aims at showing that the introduction of ambiguity in...

We analyze the role of risk aversion and intertemporal substitution in a simple dynamic investment model. Our main finding is that risk aversion cannot by itself explain a negative relationship between aggregate investment and aggregate uncertainty, as the effect of increased uncertainty in...