This paper presents a simple efficiency wage model to explain the transmission from exogenous productivity shocks to levels of economic activity. Higher real wages and rising unemployment induce workers to increase their effort. The disciplining effect of unemployment on the effort level has an...

Abstract This paper considers optimal unit root tests for a Gaussian cross-sectionally independent heterogeneous panel with incidental intercepts and heterogeneous alternatives generated by random perturbations. We derive the (asymptotic and local) power envelope for two models: an auxiliary...

In this paper we introduce the class of simple combinatorial optimisation cost games, which are games associated to {0, 1}-matrices.A coalitional value of a combinatorial optimisation game is determined by solving an integer program associated with this matrix and the characteristic vector of...

Do people follow up on their intentions? In this paper we confront the emigration intentions formed by inhabitants of the Netherlands during the year 2004-2005 and the emigration steps they took in the subsequent two years. Three results stand out. First, it appears that intentions are good...

This paper presents a discrete choice static neo-classical labor supply model for married or cohabiting couples in the Netherlands. The model simultaneously explains the participation decision and the desired number of hours worked. Due to its discrete nature, institutional details of the tax...

The paper examines the payout policy of UK firms listed on the London Stock Exchange during the 1990s.We complement the existing payout literature studies by analyzing jointly the trends in dividends and share repurchases.Unlike in the US, we find that, in the UK, firms do not demonstrate a...

Numerous works in the last decade have analyzed the question of how to compare opportunity sets as a way to measure and evaluate individual freedom of choice.This paper defends that, in many contexts, external procedural aspects that are associated to an opportunity set should be taken into...

Asymmetric information models predict comovements among trade characteristics such as returns, bid-ask spread, and trade volume on one hand and the trading intensity on the other hand.In this paper we investigate empirically the two-sided causality between trade characteristics and trading...