It is widely agreed that the natural unemployment rate recovered strongly in several OECD economies in the 1990s while not yet in the others. This paper draws on models by the authors endogenizing the path of the natural rate in order to trace the causes and apportion the credit. The results...

European policy makers may have asked too much from regional policies: to decrease inequalities between regions, to increase efficiency at the national and European levels and to decrease inequalities between countries. This paper argues that these policies face a trade-off between equity and...

Les années vingt constituent un laboratoire pour l'analyse des phénomènes monétaires. Sargent [1982] insiste sur le rôle de la crédibilité dans le succès de la politique économique. Dans un modèle centré sur le financement monétaire du déficit, la thèse selon laquelle les années...

Endogenous labor supply decisions are introduced in an equilibrium model of limited insurance against idiosyncratic shocks. Unlike in the standard case with exogenous labor (e.g. [Aiyagari, S.R., 1994. Uninsured idiosyncratic risk and aggregate saving. Quarterly Journal of Economics 109, 659–684;...

This paper examines how aversion to risk and aversion to intertemporal substitution determine the strength of the precautionary saving motive in a two-period model with Selden/Kreps-Porteus preferences. For small risks, we derive a measure of the strength of the precautionary saving motive which...

This Paper examines how aversion to risk and aversion to intertemporal substitution determines the strength of the precautionary saving motive in a two-period model with Kreps-Porteus preferences. For small risks, we derive a measure of the strength of the precautionary saving motive, which...

Our main objective here is to assess the macroeconomic incidence of this peculiar fiscal setting when countries in the Euro area face symmetric shocks. Though these shocks are more easily circumvented than asymmetric shocks – the ECB should be able to stabilise the economy without fiscal...

Les comptes des entreprises ont récemment défrayé la chronique. Il faut dire que la comptabilité peut mentir, comme le montrera l’histoire du redressement spectaculaire de l’entreprise Cacahuète S.A. Peut-elle même dire le vrai ? La comptabilité, loin d’être une science exacte, est...

The European Union (EU) should aim at providing European citizens with European public goods. In a pseudo-federal system like the EU, political deliberation should be about how to finance and produce the public goods that benefit all European citizens, and not only member states individually....

A model is developed that allows for interaction between the labor market and the housing market. A job location has an associated commuting time that may affect the job acceptance decision. Obstacles to mobility, such as regulations in the housing market will affect the reservation strategy of...