In this paper, we develop an empirical strategy based on the treatment evaluation model to show (i) that sunk entry costs exist for French firms and (ii) that firms? productivity significantly affects their level of sunk costs. Given our empirical results, we extend the basic Melitz [2003] model...

This paper analyses the convergence process of inequality in income among five Balkan countries in the 1989-2005 period. This study is carried out in comparison with the situation in the European Union of 27 countries. The originality of our approach is to consider the convergence of country...

This article highlights the strict association met in the literature between the adaptive expectations assumption and the correct running of the monetary model of hyperinflation. A complete resolution of the model is carried out under the adaptive expectations hypothesis. It is shown that the...

This article questions the nature of the foreign direct R&D investments in Central Europe. Do the affiliates of the multinationals still undertake adaptive R&D? Have they recently engaged in innovative R&D activities in their Central European affiliates? We assess the nature of the R&D...

A la fin des années 2000, les taux d’emploi des personnes ayant des incapacités en France étaient de 46% contre 72% pour les personnes sans incapacités. Si l’on sait évaluer le coût de l’indemnisation de l’incapacité temporaire de travail pour maladie pour l’Assurance maladie...

In Keynes’ beauty contest, agents have to choose actions in accordance with an expected fundamental value and with the conventional value expected to be set by the market. In doing so, agents respond to a fundamental and to a coordination motive respectively, the prevalence of either motive...

Using a two-country DSGE model, we analyze the spillover effects of fiscal policy in a monetary union. Based on a non-Walrasian labor market and a detailed fiscal sector, our analysis focuses on the relative cross-border effects of different kinds of fiscal instruments (expenditure side and...

In this article, we propose to view the firm as a locus of socialization in which employees with heterogeneous work attitudes can be motivated and coordinated through adherence to a social ideal of effort. We develop an agency model in which employees have both a personal and a social ideal of...

Crucial to the analysis in this paper is the Coasian insight that external costs result from conflicting uses of scarce resources and that responsibility for these costs should not be attributed exclusively to polluters as required by the polluter pays principle (PPP). The paper argues that the...

We build an analytical model to understand dynamic interlinkage between volatility in economic growth and stochastic demographic dynamics. The time series properties of the model are exploited to offer introspective understanding of the existence of persistence of endogenous and exogenous growth...