This paper analyses how job security policies, which in practice result in higher firing costs, affect long-run employment and investment in a two country model with free trade in goods and capital. The effects turn out to depend crucially on the preferences of trade unions, and in particular on...

This paper is a first attempt to analyse the consequences of establishing the internal market when taking account of labour market effects of product market integration. Our main focus is on market power, and we show that both labour unions and firms may lose market power when product markets...

This paper addresses the question of the possible real side effects of exchange rate devaluation in a small dependent economy, with a specific empirical application to Jordan. A macroeconomic model is constructed on the basis of a number of stylized facts which characterize the Jordanian...

In this paper, the authors analyze how job security policies, which in practice result in higher firing costs, affect long-run employment and investment in a two-country model with free trade in goods and capital. The effects turn out to depend crucially on the preferences of trade unions and,...

This paper analyzes the real and monetary effects of a shift in the exchange-rate policy in an economy where the private sector is uncertain about the true intentions of the government. In a finitely repeated game of incomplete information, the authors show that a shift towards a tight, fixed...

This paper analyzes whether, and to what extent, the Danish 1, 5 and 10-year equity premia <p> are predictable. We examine the predictive power of a comprehensive list of financial ratios, <p> interest rates and so forth. The results show that the 5-year premium is predictable in the <p> sense that the...</p></p></p>

Until 1989 the economic policy strategy of Jordan was inward looking with emphasis on import substitution facilitated by a high tariff wall. Since then, the strategy has been changed in the direction of a more outward looking strategy characterized by attempts to stimulate exports, by cuts in...