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This paper shows that labor market search frictions do not explain fluctuations in the labor wedge per se. However, the introduction of extensive and intensive margin clarifies that measuring the MRS in terms of total hours artificially introduces procyclicality in the MRS. When the MRS is...
Persistent link: https://www.econbiz.de/10013123923
This paper assesses whether labor market frictions, in the form of searching and matching, can help explain movements in the labor wedge - the gap between the marginal rate of substitution (MRS) and the marginal productivity of labor in a perfectly competitive business cycle model. Results...
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This paper shows that labor market search frictions do not explain fluctuations in the labor wedge per se. However, the introduction of extensive and intensive margin clarifies that measuring the MRS in terms of total hours artificially introduces procyclicality in the MRS. When the MRS is...
Persistent link: https://www.econbiz.de/10014399358
We present evidence that more ethnically fragmented communities spend, all else equal, more on police services than … less fragmented communities. We introduce a model of spending on police services which we use to interpret the data. In … spending on police services reduces the attractiveness of committing a crime. We also assume that being a victim of crime …
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