We consider a model of on-the-job search where firms offer long-term wage contracts to workers of different ability. Firms do not observe worker ability upon hiring but learn it gradually over time. With sufficiently strong information frictions, low-wage firms offer separating contracts and hire all types of workers in equilibrium, whereas high-wage firms offer pooling contracts designed to re...

The link between trade liberalization and poverty reduction has played a crucial role on economic policy in developing and least developed countries, particularly in sub-Saharan Africa. Academic research shows a remarkable lack of consensus and no clear effects in the direction of these linkages. This study presents an overview of the impact of trade liberalization on poverty in Sub-Saharan Afr...

Proof of Proposition 4.1. We begin allowing a MPE in mixed strategies. When the leader meets follower i in state m, she makes an offer p(m) with probability γm ∈ [0, 1]. The follower accepts the offer with probability αm ∈ [0, 1]. Note that the follower i meeting the leader in state m accepts only if δwout(m−1)+p(m) ≥ δw(m), and accepts with probability one if this inequality holds strictly. No...

Previous papers have modelled the behaviour of populations which are subject to kleptoparasitism, and found those ecological situations in which kleptoparasitism should occur. Individuals were considered to be in one of several states, and an equilibrium distribution for the population was found. It was then assumed, for analytical purposes but without proof, that the population was actually in...

I construct the life-cycle model with equilibrium default and preferences featuring temptation and self-control. The model provides quantitatively similar answers to positive questions such as the causes of the observed rise in debt and bankruptcies and macroeconomic implications of the 2005 bankruptcy reform, as the standard model without temptation. However, the temptation model provides cont...

This paper examines the phenomenon of training teachers of Physical Education and Sports (PES) in Turkey with respect to its dimensions of student quotas, graduates, and employment; and performs analytical evaluations through the numeric data. In the last five years, the number of labor force participants in PES teaching posts was 14,459 on average and the average employment volume was 10.29%, ...

Maynard-Smith (1974) has presented a game of attrition model for animal conflict. He assumed that the penalty function, giving the cost in terms of fitness, of displaying for a given time period, is a linear function of the time of display. Under this assumption he shows that an evolutionary stable strategy (ESS) always exists: one such is a mixed strategy for which display times have a negativ...

We employ a simple two-period model to show that the use of confidential settlement as a strategy for a firm facing tort litigation leads to lower average product safety than that which would be produced if a firm were committed to openness. Moreover, confidentiality can even lead to declining average product safety over time. We also show that a rational risk-neutral consumer’s response to a m...

Perturbation analysis is a powerful tool to study population and community dynamics. This article describes expressions for sensitivity metrics reflecting changes in equilibrium occupancy resulting from small changes in the vital rates of patch occupancy dynamics (i.e., probabilities of local patch colonization and extinction). We illustrate our approach with a case study of occupancy dynamics ...

These notes analyze the production of financial services in general equilibrium. 1 Real Economy 1.1 Households The finance industry provides credit as well as liquidity and payment services to households (and savers more generally). In addition, household debt has an important life-cycle component (i.e., mortgages). The model must therefore incorporate these features. To do so, I consider a set...