New estimates for West Germany indicate overall productivity differentials of 20-30 percent in favor of firms practicing profit sharing. These compare with estimates of 3-8 percent for comparable British firms reported in a recent issue. Like the U.K. results, they reveal important interactions...

This paper reports productivity differentials of 3-8 percent in favor of profit-sharing firms in the U.K. engineering industry. The estimates come from equations in which profit sharing interacts with factor input levels and the firms' technological, organizational, and labor-force...

This article examines whether subjective expectations of unemployment are reliable indicators of the probability of becoming unemployed and investigates their association with wage growth. We find that workers' fears of unemployment are increased by their previous unemployment experience and by...

This paper examines the impact of housing equity and occupational pension scheme membership on job tenure. Using job duration data from the 1985 General Household Survey, appropriate hazard functions are constructed and estimated. Housing equity data is constructed from the General Household...

The authors reexamine the basic investment problem of deciding when to incur a sunk cost to obtain a stochastically fluctuating benefit. The optimal investment rule satisfies a trade-off between a larger versus a later net benefit; they show that this trade-off is closely analogous to the...

Given a policy rule of the common central bank of a monetary union, member countries with different preferences about inflation and facing asymmetric shocks have different incentives to secure political intervention in the bank's operation and achieve the temporary benefit of surprise inflation....

We extend the theory of common agency to the situation where the principals' payoffs are affected by their "ex ante" expectations of the agent's "ex post" choice. We show how the usual truthful schedules must be modified to account for the rational expectations constraint. We apply the model to...