This paper provides the proofs to the analysis of a continuous time matching model with saving in Bayer and Wälde (2010a). The paper proves the results on consumption growth, provides an existence proof for optimal consumption and a detailed derivation of the Fokker-Planck equations.

We propose a dynamic model that explains why individuals may be reluctant to pick up work although the wage is above their reservation wage. Accepting low paid work will put them in an adverse position in future wage bargaining, as employers could infer the individual's low reservation wage from...

This paper develops a tractable dynamic microeconomic model of migration decisions that is aggregated to describe the behavior of interregional migration. Our structural approach allows us to deal with dynamic self-selection problems that arise from the endogeneity of location choice and the...

This paper provides a cross-country comparison of life-cycle and business-cycle fluctuations in the dispersion of household-level wage innovations. We draw our inference from household panel data sets for the US, the UK, and Germany. First, we find that household characteristics explain about...

Using a German firm-level data set, this paper is the first to jointly study the cyclical properties of the cross-sections of firm-level real value added and Solow residual innovations, as well as capital and employment adjustment. We find two new business cycle facts: 1) The cross-sectional...

COVID-19 is spreading and has reached the state of a worldwide pandemic and health systems are or will be tested in how they can deal with it. So far, during this early phase of the pandemic, outcomes in terms of case-fatality rates (CFR) differ widely across countries. We explore how...

Nach dem Einmarsch Russlands in die Ukraine haben viele westliche Länder Sanktionen gegen Russland verhängt, insbesondere gegen die Finanzwirtschaft. Doch zu einer Sanktion konnten sich die EU und auch Deutschland bisher nicht durchringen: ein Embargo auf den Import russischer Energieträger....

In diesem Artikel werden die wirtschaftlichen Auswirkungen eines möglichen Stopps russischer Energieimporte auf die deutsche Wirtschaft diskutiert. Wir zeigen, dass die Auswirkungen wahrscheinlich substanziell, aber handhabbar sein werden. Kurzfristig würde ein Stopp der russischen...

When employers face a trade-off between growing large and paying low wages—that is, when they have monopsony power—some productive employers will decide to acquire fewer customers, forgo sales, and remain small. These decisions have adverse consequences for aggregate labor productivity....

When employers face a trade-off between growing large and paying low wages—that is, when they have monopsony power—some productive employers will decide to acquire fewer customers, forgo sales, and remain small. These decisions have adverse consequences for aggregate labor productivity....