Quit Turnover and the Business Cycle: A Survey The focus of this chapter is to consider new developments in the search and matching literature where wages, quit turnover and unemployment are endogenously determined in economies with aggregate shocks. The aim of the discussion is not only to highlight possible market failures but also to explain how on-the-job search and employee turnover fundam...

We study the stabilitywith respect to the introduction of opportunitybased inequity aversion a la Dufwenberg et al. (2011) of three welfare properties satisfiedbycompetitive equilibria in self-regarding economies: (i) Pareto efficiencymay not be a stable property; (ii) undomination with respect to income redistribution is a stablepropertywhenever themarginal indirect utility of income has no ex...

While compensation accounts for roughly 90% of K-12 instructional costs, there is little evidence of rational design in these systems. This chapter reviews the nature of teacher compensation systems in developed economies and research on their performance effects. Since these compensation schemes typically arise out of collective negotiations, this chapter also surveys the smaller literature on...

We present a General Equilibrium model with incomplete markets in which assets pay in units of a single good. In our model, agents are constrained to negotiate the same amount of assets at different states of the world. Differently from the standard result of economies with real assets, our model shows the existence of real indeterminacy. The presence of multiple equilibria raises issues relate...

This article reexamines the problem of labor exploitation in advanced capitalist economies, especially the United States. The article specifies the concept of labor exploitation by using both the Marxian and marginalist notions and measures. The implicit neoclassical presumption of no or little labor exploitation in a capitalist economy is rejected by the results. The alternative heterodox argu...

Benhabib and Rustichini [Optimal taxes without commitment, J. Econ. Theory 77 (1997) 231–259] study the properties of optimal capital taxes in economies without commitment and no government debt. They find that capital taxes may be different from zero at steady state. This note shows that, once governments have the possibility of issuing debt and smoothing taxes over time, optimal steady state ...

This paper examines convergence of real GDP per capita in the selected East Asian countries and this relationship with selected Middle East countries during the period 1950-2009. The reason behind this refers to the fact that East Asia countries (including China, Hong Kong, Singapore, Malaysia, Indonesia, Thailand, Japan and South Korea) have been involved in achieving success arising from regi...

In this paper we extend the results of recent studies on the existence of equilibrium in finite dimensional asset markets for both bounded and unbounded economies. We do not assume that the individual’s preferences are complete or transitive. Our existence theorems for asset markets allow for short selling. We shall also show that the equilibrium achieves a constrained core within the same fram...

For the case of smooth concave exchange economies, we provide a characterization of the inner core as the set of feasible allocations such that no coalition can improve on it, even if coalitions are allowed to use some random plans. For the case of compactly generated games, we discuss Myerson’s definition of the inner core, and we characterize it using lexicographic utility weight systems.  2...

I show that the “consumption variation” approach, commonly used in infinitely lived agent models to measure the welfare impact of a policy, is not accurate in overlapping generations environments. While in an infinitely lived agent environment the consumption variation can be shown to be equivalent to a measure based on the Hicks compensation principle, this is not true in overlapping generatio...