We develop an envelope condition method (ECM) for dynamic programming problems –a tractable alternative to expensive conventional value function iteration. ECM has two novel features: First, to reduce the cost, ECM replaces expensive backward iteration on Bellman equation with relatively...

This paper constructs a dynamic theoretical model and calibrates the model with the Australian data. The simulations provide new findings which demonstrate that skilled immigrants are not ‘job robbers’ but unskilled immigrants have the potential to become such. The result that immigrants are...

This paper investigates the current important issue in Taiwan that the impact of foreign workers on the rising unemployment by a dynamic intertemporal general equilibrium model. The results show that the introduction of foreign workers plays a complementary role and reduces unemployment rate at...

El objetivo de este trabajo es responder dos preguntas de política relacionadas con el uso de un depósito no remunerado como forma de control de capitales en una economía pequeña y abierta como la colombiana: ¿Son un instrumento efectivo para reducir el endeudamiento externo de los agentes...

The aim of this article is to analyze how financial heterogeneity can accentuate the cyclical divergences inside a monetary union that faces technological, monetary and financial shocks. To this purpose, this study relies on a two-country Dynamic Stochastic General Equilibrium model, where the...

The aim of this article is to analyze how financial heterogeneity can accentuate the cyclical divergences inside a monetary union that faces technological, monetary and financial shocks. To this purpose, this study relies on a two-country Dynamic Stochastic General Equilibrium model, where the...

In this paper we study the behavior of optimal paths in dynamic programming models with a strictly convex return function. Such a model has been investigated in Dawid and Kopel (1997) who assume that the growth of a renewable resource is governed by a piecewise linear function. We prove that in...

This paper investigates the relative cyclical behavior of the pay of piece workers and hourly paid workers. It uses a unique data set of blue-collar workers in British engineering between 1926 and 1966. The statistics are obtained from the payrolls of firms belonging to the Engineering Employers...

This study addresses the effects of macroeconomic conditions on the labour market outcomes of immigrants. It simultaneously identifies the separate effects of macro conditions at the time of entry to the labour market and at the time of the survey, while allowing for cohort effects. Also, for...

This study addresses the effects of macroeconomic conditions on the labour market outcomes of immigrants. It simultaneously identifies the separate effects of macro conditions at the time of entry to the labour market and at the time of the survey, while allowing for cohort effects. Also, for...