This paper investigates how the feasibility of migration affects governments' optimal fiscal policies. We assume that households migrate towards economies where their welfare is higher, governments choose taxes and public expenditures to maximize a weighted sum of the households' welfare,...

This paper assesses the contribution of monetary policy to bond returns volatility, assuming that the monetary authority controls the short-term nominal interest rate. We model exogenously the joint process for the aggregate endowment and the nominal interest rate, and we determine endogenously...

We consider a model of bribery and favoritism in a sealed-bid first-price procurement auction. The auctioneer can award the contract to a dishonest supplier at the low bid of an honest supplier. We examine the equilibrium bidding functions of both suppliers when it is common knowledge that the...

This paper studies an exchange economy with a finite number of agents in which each agent is initially endowed with a finite number of (personalized) indivisible commodities. We observe that the core equivalence theorem may not hold for this economy when the coalitional form game is generated in...

One of the most sustained uses of economic warfare by the United States, at least judged by the variety of means used and the issue at stake, occurred in Spain and Portugal during WWII. We provide an overview of this episode by weaving together findings from the secondary literature and from new...

The speed at which immigrants assimilate is the subject of debate. Human capital formation plays a major role in this discussion. This paper compares the educational attainment of second generation immigrants to those of natives in the same age cohort. Evidence using a large German data set...

In this paper we develop a unified framework for the study of additive cost sharing methods. We show that any additive cost sharing method satisfying the dummy axiom can be generated by a (possibly infinite) convex combination of path generated methods. We also show that the set of scale...

This paper examines the differential effects of mother's schooling and father's schooling on the acquisition of schooling by their offspring. It does this in a "cross-cultural" context by comparing results across three countries: Germany, Hungary and the Former Soviet Union. It looks within...

Several papers have recently adopted the segmented markets model as a framework for monetary analysis. The characteristic assumption is that some households never participate in financial markets. This paper proves the existence of an equilibrium for segmented markets models where monetary...

The U.S. economy had experienced the "jobless recovering" after the 1990-1991 and 2001 recessions, which has been constantly puzzling the economists, market analysts, and policymakers. This paper uses a simple hiring game in an efficiency wage model framework to resolve that puzzle. Our...