This paper focuses on the transitory relationship between output level and Income inequality. As a result of either permanent or transitory sectoral technological shocks the economy will adjust to a new steady state equilibrium, but during the transition the dynamics of wages and workers will...

This paper uses the technology adoption general equilibrium model developed by Moscoso Boedo (2006) to analyze the transition for the countries of the former USSR and Eastern Europe. There the real output displayed a U-shapped pattern together with increases in inequality, which are features...

Skill intensive technologies seem to be adopted more often by rich countries rather than poor ones. Related to that observation, the ratio of wages of skilled to unskilled workers - the skill premium - shows two important features over time and across countries. In the US the skill premium...

This paper analyzes the effects of entry regulations and firing costs on cross-country differences in income and productivity. We construct a general equilibrium industry- dynamics model and quantitatively evaluate it using the cross-country data on entry costs and firing costs. Entry costs...

productivity differences between the US and developing economies.

In this paper we document the relationship between idiosyncratic risk and non productive expenditures at the rm level from the Kauman Firm Survey. We then propose a model of entrepreneurial activity subject to nancial constraints where rms engage in borrowing to nance capital and wages, but also...

This is a theory of endogenous volatility over the business cycle based on firm-level intangible expenditures. We propose a firm dynamics model with endogenous market participation. Firms that incur higher intangible expenses are able to serve more markets and diversify market-specific demand...

Skill intensive technologies seem to be adopted by rich countries rather than poor ones. Related to that observation, the ratio of wages of skilled to unskilled workers - the skill premium - shows two important features over time and across countries. In the US the skill premium decreased during...