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A microfoundation for production functions: assignment of heterogenous workers to heterogenous jobs

Dupuy, Arnaud - 2008

In very different fields of economics, economic inference and policy evaluation require economists to parametrize a production function that links measures of input factors to measures of output. While doing so, strong assumptions are implicitly made about microeconomic variables governing the...

Persistent link: https://www.econbiz.de/10010268825

The effects of labour tax progression under nash wage bargaining and flexible outsourcing

Koskela, Erkki - 2008

outsourcing, wage tax and tax exemption in an imperfectly competitive labour markets when labour unions and firms negotiate wages …

Persistent link: https://www.econbiz.de/10010268838

Using firm optimization to evaluate and estimate returns to scale

Gorodnichenko, Yuriy - 2008

At the firm level, revenue and costs are well measured but prices and quantities are not. This paper shows that because of these data limitations estimates of returns to scale at the firm level are for the revenue function, not production function. Given this observation, the paper argues that,...

Persistent link: https://www.econbiz.de/10010268849

Relative performance pay, bonuses, and job-promotion tournaments

Kräkel, Matthias; Schöttner, Anja - 2008

Several empirical studies have challenged tournament theory by pointing out that (1) there is considerable pay …

Persistent link: https://www.econbiz.de/10010268856

On reputation: a microfoundation of contract enforcement and price rigidity

Fehr, Ernst; Brown, Martin; Zehnder, Christian - 2008

We study the impact of reputational incentives in markets characterized by moral hazard problems. Social preferences … have been shown to enhance contract enforcement in these markets, while at the same time generating considerable wage and … rigidities arising from social preferences. Thus, in markets characterized by moral hazard, reputational incentives unambiguously …

Persistent link: https://www.econbiz.de/10010268857

Origins and consequences of child labor restrictions: a macroeconomic perspective

Doepke, Matthias; Krueger, Dirk - 2007

We investigate the positive and normative consequences of child-labor restrictions for economic aggregates and welfare. We argue that even though the laissez-faire outcome may be inefficient, there are usually better policies to cure these inefficiencies than the imposition of a child-labor ban....

Persistent link: https://www.econbiz.de/10010268858

A theory of military dictatorships

Acemoglu, Daron; Ticchi, Davide; Vindigni, Andrea - 2008

We investigate how nondemocratic regimes use the military and how this can lead to the emergence of military dictatorships. Nondemocratic regimes need the use of force in order to remain in power, but this creates a political moral hazard problem; a strong military may not simply work as an...

Persistent link: https://www.econbiz.de/10010268860

Formality, informality, and social welfare

Bennett, John - 2008

An industry is modeled in which entrepreneurs, who are heterogeneous in ability, may produce formally or informally. It is shown how the formal-informal mix depends on the distribution of ability, product demand and various parameter values. The industry equilibrium is compared to one in which...

Persistent link: https://www.econbiz.de/10010268865

Ideology

Bénabou, Roland - 2008

the proper scope of governments versus markets. In processing and interpreting signals of the efficacy of public and …

Persistent link: https://www.econbiz.de/10010268866

Management compensation and firm-level income inequality

Frederiksen, Anders; Poulsen, Odile - 2008

general equilibrium model. Empirical estimation, of the model's key parameters show that the rising management premium is …

Persistent link: https://www.econbiz.de/10010268874