We offer a unified framework to analyze the determination of employment, employee effort, wages, profit sharing and capital structure when firms face stochastic revenue shocks.We apply a generalized Nash bargaining solution, which extends the wage bargaining literature by incorporating...

We study the role of labour and credit market imperfections for the determination of equilibrium unemployment.In the credit market loan contracts are negotiated between financiers and firms, both possessing bargaining power, while the firms and organized labour bargain over the base wage.The...

We study employment, employee effort, wages and profit sharing when firms face stochastic revenue shocks and when base wages and profit shares are determined through collective bargaining.The negotiated profit share depends positively on the relative bargaining power of the trade union and has...

The study looks at the implications of product market competition and investment for price setting, wage bargaining and thereby for equilibrium unemployment in an economy with product and labour market imperfections.We show that intensified product market competition will reduce equilibrium...

This study demonstrates that the common view, whereby an increase in competition leads banks to increased risk taking, fails to hold in an environment where consumers can choose in which bank to make a deposit based on their knowledge of the riskiness incorporated in the banks' outstanding loan...

The purpose of the paper is to revisit the demand for money specifiections by using U.S. quarterly data over the sample period 1951:1 - 1983:4. Utilizing the so-called threshold models suggested by Tong and Lim (1980) we first demonstrate the unsatisfactory performance of standard linear partial...

In a recent paper, John Graham (1987) has argued that the life cycle approach. performs rather well in accounting for intercountry differences in household saving rates so that the negative evidence sometimes reported i s not warranted. This comment presents pieces of evidence against this view....

This paper analyzes aggregate household saving under the capital market imperfection, which is characterized by the wedge between the borrowing rate and the lending rate. Under these circumstances the assumption of a representative household is unlikely to hold and consumers are distributed into...

Keeping the finding of Feldstein and Horioka (1980) - that countries investment rates are highly correlated with their national saving rates - as a starting point this paper examines the possibility that . monetary policy reactions to target the current account mi.ght explain saving-investment...

This paper presents a simple model of aggregate demand in current market prices, in which public sector employment affects aggregate (and private) demand via the total output, the lump-sum taxes and the valuation of public sector production. Whlle the last effect is positive for aggregate...