This paper develops a general equilibrium model with safe and risky jobs where unemployment is concentrated in a highly productive but volatile sector. Frictional unemployment arises in the process of job creation, firing and retraining for alternative employment. The paper derives an optimal...

Abstract I take seriously the hypothesis that the wealthy lack time to consume to explain empirical evidence on old age asset decumulation and rich savings rates. Basic life-cycle theory predicts that households run down their assets toward the end of their life but evidence shows they do it at...

This paper considers the role of flexicurity when jobs must be reallocated from a declining, traditional sector to a skill intensive expanding sector. Workers initially decide whether to acquire qualifications for skill-intensive tasks or to accept a less demanding traditional job. Unemployment...

Albania is one of the Eastern European countries that has done some radical changes, in their way through the reform, toward market economies. Many branches of the economy are involved in the processes of privatization, restructuring and deregulation. The reform, sooner or later, will go through...

In economics, politics, business and statistics time distance concept can provide new insights from existing data. A novel statistical measure S-distance (expressed in time) is generalised to complement conventional static measures in time series comparisons, regressions, models, forecasting and...

The results of the presidential elections in Ukraine in June-July of 1994 could be considered as influenced not only by the ethnic structure of the Ukrainian society but by the structure and regional differences of the Ukrainian economy, especially the Ukrainian industry. The paper shows that...

We develop a simple integrated framework to assess consistency between fiscal policy, monetary reform and inflation. The framework is designed to be applicable in transition economies, where reliable data are at a premium and the financial sector in a state of flux. The model is applied to...

The paper investigates the role of social cohesion in economic development. We capture 'social cohesion' as society's willingness to accept lower wages to increase employment, and as its willingness to offer benefit payments to the unemployed. The lower the minimum wage rate and the higher the...