In a seminal study Hodrick et al. (1991) evaluate the ability of a simple cash-credit model to produce realistic variability in consumption velocity while at the same time successfully explaining other key statistics. Sufficient variability in the latter is found to be associated with far too...

This paper examines the effectiveness of monetary aggregates through various nominal interest rates by integrating the financial sector into the Cash-in-Advance (CIA) economy. The model assumes that there are two types of representative agents in the financial sector, which are: productive banks...

A positive joint two-sector productivity shock causes Rybczynski (1955) and Stolper and Samuelson (1941) effects that release leisure time and initially raises the relative price of human capital investment so as to favor it over goods production. This enables a basic RBC model, modified by...

We assess whether the probability of a sample member participating at a particular wave of a panel survey is greater if the same interviewer is deployed as at the previous wave. Previous research on this topic mainly uses non-experimental data. Consequently, a) interviewer change is generally...

This paper identifies a data-consistent, equilibrium model of unemployment, wage dispersion, quit turnover and firm growth dynamics. In a separating equilibrium, more productive firms signal their type by paying strictly higher wages in every state of the market. Workers optimally quit to firms...

The Work Capability Assessment governs entitlement to the Employment and Support Allowance - the social security benefit for people who are incapable of work. It is based on rules which decide entitlement according to the combination of impairments experienced by the claimant. This paper...

Models-in-the-minds about the proper and right way to be a true friend or to do family behaviour may not necessarily fit lived experience, especially in cases where relationships become fused and distinctions between family and friend become blurred.. We suggest the idea of a personal community...

In an influential article Tornell and Lane (1999) considered an economy populated by multiple powerful groups in which property rights in the formal sector of production are not protected. They obtained conditions under which the groups appropriate output from the formal sector in order to...

The output multiplier turns negative before a deficit spending program expires. We show the generality of this unpleasant finding for the standard real business cycle model. We then calibrate an extended model for the US and demonstrate how fiscal stimulus slows down economic recovery from...