The shirking model of efficiency wages has been thought to imply that monitoring and pay are substitute instruments for motivating workers. We demonstrate that this result hinges critically on restrictive assumptions regarding workers' choice of effort - for example that there are only two...

: In many countries, governments grant different capital subsidies to the business sector in order to promote growth. Also the EU, provides this type of subsidies. As De Long and Summers (1991) suggest there might be market failure justifications for public subsidisation of firms. However,...

Economic growth in Cambodia came to an abrupt halt in 1997 as the home made political crisis and the external financial crisis took their toll. However, Cambodia has been comparatively mildly affected by the Asian crisis and provided that political stability can be achieved there are good...

In September 1931, Sweden became the first country to make the stabilization of the domestic price level the official goal of its monetary policy, actually the only country that so far has adopted such an explicit price level target. Starting from the issues and concepts familiar from research...

The incidence and duration of work absence spells for a sample of Swedish blue collar workers in 1991 are analyzed using the Kaplan-Meier estimator, discrete time hazard regression as well as stratified Cox regression. The main interest is directed towards the effect of economic incentives. The...

This paper develops an adverse selection model of mixed bundling. By packaging its product with a competitively produced good unrelated in demand, a monopolist can induce self-selection of different types of consumers into buyers of the bundle and of the separate components. Private and social...

This paper is concerned with the estimation of an employment relationship and employment efficiency under production risk using a panel of Zimbabwe's manufacturing industries. A flexible labour demand functions are used and consist of two parts: the traditional labour demand function and labour...

People go to school and firms do R&D. These activities result in human capital accumulation and new ideas and technologies which make economies grow. We try to capture the interaction between human capital and R&D by allowing for endogenous human capital accumulation in an economy where the...

Vietnam has witnessed a dynamic restructuring of its non-state enterprises since the initiation of market reforms in the late 1980s. Based on the results of 371 private sector enterprises surveyed in 1991 and 1997, this paper analyses the transformation of one category of resurveyed enterprises...

The purpose of this paper is to quantitatively evaluate the impact on electricity prices of deregulation and free trade in the Nordic countries. The analysis is focused on the impact of increased competition on market power and the degree of monopolistic pricing. The major tool for our analysis...