Showing 1 - 10 of 62
We present a model of the labor market with asymmetric information in which the equilibrium of the' market generates unemployment and job queues so that wages may serve as an effective screening device. This happens because more productive workers -- within any group of individuals with a given...
Persistent link: https://www.econbiz.de/10013225948
This paper explores the implications for less developed countries the hypothesis that workers' productivity depends on the wages they receive. In particular, we show that this hypothesis may explain the high urban wages and unemployment found in many such countries. The market equilibrium is...
Persistent link: https://www.econbiz.de/10013226192
The optimal income taxation problem has been extensively studied in one- period models. When consumers work for many periods, this paper analyzes what information, if any, that the government learns about abilities in one period can be used in later periods to attain more redistribution than in...
Persistent link: https://www.econbiz.de/10012760230
This paper describes the role that informational imperfections in capital markets are likely to play in business cycles. It then developes a simple illustrative model of the impact of adverse selection in the equity market and the way in which this may lead to large fluctuations in the effective...
Persistent link: https://www.econbiz.de/10012760340
essential to a theory of international lending is that of enforcement. The difficulty is one of ensuring that the two sides of a …
Persistent link: https://www.econbiz.de/10012763435
This paper presents a simple, general equilibrium macroeconomic model incorporating financial constraints, both credit and equity rationing, as well as other informational imperfections in labor and product markets, such as efficiency wage effects. A formulation somewhat analogous to the...
Persistent link: https://www.econbiz.de/10012763490
We study the Rothschild-Stiglitz model of insurance markets, introducing endogenous information disclosure about insurance sales and purchases by firms and consumers. We show that a competitive equilibrium exists under unusually mild conditions, and characterize the unique equilibrium outcome....
Persistent link: https://www.econbiz.de/10012862863
We study the Rothschild-Stiglitz model of competitive insurance markets with endogenous information disclosure by both firms and consumers. We show that an equilibrium always exists, (even without the single crossing property), and characterize the unique equilibrium allocation. With two types...
Persistent link: https://www.econbiz.de/10012916614
, but aggregate consumption experiences significant changes. We present a theory of pseudo-wealth—individuals' perceived …
Persistent link: https://www.econbiz.de/10012978852
Modern technology provides the basis of an efficient low-cost electronic payments as an alternative to the current system where fiat money is the medium of exchange. This paper explores possible macro-economic implication, showing how such a financial system might enhance government's ability to...
Persistent link: https://www.econbiz.de/10012965440