We study the effects of labour market imperfections and the capital stock on equilibrium unemployment. With an exogenous capital-labour ratio, stronger labour market imperfections promote equilibrium unemployment. However, the relationship between the long-run unemployment and the capital stock...

This survey emphasizes innovation-intensive competition, strong technological scale economies, switching costs, network effects and complementarity between system components as characteristic features of the core industries in the information economy. With reference to these features the study...

We address the question of whether competition makes loan markets more fragile in the sense of increasing the equilibrium bankruptcy risk of firms. This is done using a model of the interaction between the concentration of the banking sector and the investment strategies of imperfectly...