In this paper, the authors evaluate certain challenges put forth by Mukesh Eswaran and Ashok Kotwal (1984) and Eric Rasmusen (1987) concerning the legitimacy of Bengt Holmstrom's (1982) proposed solution for the problem of moral hazard in teams. They demonstrate that the argument put forth by...

In this paper we explore the link between technological change and the dynamics of employment, production, and the distribution of earnings. Technological change not only advances society's collective capability but also changes the relative productivities of its members. The latter effect...

A number of recent empirical studies have identified the presence of a cyclical asymmetry in unemployment rate fluctuations. In particular, during a recession the unemployment rate increases sharply, while during an expansion the unemployment rate declines only gradually. The purpose of this...

Kocherlakota (2003) provides an example of a monetary economy where efficiency is enhanced with the introduction of a nominally risk-free bond that is specifically designed to be illiquid. The societal benefit of an illiquid bond in his example, however, is transitory, and he does not...