We illustrate the model with an example motivated by catastrophe insurance contracts. In a particular market, at each of the event times of a Poisson process J with a constant intensity η, a catastrophe occurs that causes losses throughout a population of consumers who are potential buyers of protection. Each of a continuum of consumers in the given insurance market has a property that experien...

The twin starting points for this paper are recent discussions in economic theory concerning the normative foundations for indices of intergenerational mobility, and the development of a human capital score intended (in conjunction with a parallel measure of individual wealth) to act as an indicator of social class. The paper specifies an intergenerational Gini-type mobility index, based on the...

Krol (1996) reports estimates of the saving-investment correlation, based on panel regressions, that are much lower than commonly found in the literature. This note argues that this low estimate is not related to the panel estimation technique, as Krol claims, but largely to the inclusion of Luxembourg in the sample. Panel estimation only reduces the correlation’s estimate by about 0.12. Octobe...

The movement of personnel between firms has been shown to have important implications for firms, yet there has been little direct investigation of the underlying mechanisms. We propose that in addition to their human capital, mobile individuals carry social capital, affecting the outcomes of the firms they join and leave by altering the patterns of interaction between firms. In this study, we e...

The issue of the interaction between trade and labor mobility has become a major topic in the context of economic integration and trade liberalization. The main purpose of this study is to investigate the issue of international labor mobility from the standpoint of new developments in trade theory, by asking the following question: does trade liberalization result in the substitution or complem...

Why does ethnicity have varied effects on socioeconomic outcomes, such as educational achievement, for different national-origin groups, even after holding constant key socioeconomic and contextual factors? Why do the children of Chinese and Korean immigrants in the United States, regardless of socioeconomic backgrounds, excel and succeed in the educational arena in disproportionately large num...

Openness appears to have a strong impact on economic growth especially in DCs, which typically exhibit a high share of physical capital in factor income and a low share of labor. In the neoclassical growth model with partial capital mobility, physical capital's share in factor income determines the difference in the predicted convergence rates for open and closed economies. With a 60 percent sh...

In this paper, we provide a comprehensive assessment of the role of coworker-based networks in the labor market. Using Danish register data, we first analyse how such social networks shape workers' inter-firm mobility patterns, considering both job-to-job and unemployment-to-job movements. We then assess which dimensions of worker-pair-specific social capital are the main drivers of individual ...