In recent times the employment effects of technical progress raised much intention. Will recent productivity gains lead to technological unemployment or to a new prosperity? In our paper it is shown formally that under general and standard preconditions the price elasticity of demand on product...

One of the key issues in economics is the explanation of unemployment and its variation across different economies. Modern mainstream macroeconomics refers to the effects of financial crises and to institutional structures and their variation across countries. However, unemployment within the...

In recent times the employment effects of technical progress raised much intention. Will recent productivity gains lead to technological unemployment or to a new prosperity? In our paper it is shown formally that under general and standard preconditions the price elasticity of demand on product...

The United States labor market has become less dynamic over the past three decades. This paper explores the contribution of housing market regulation towards these declines. First, a 1sd rise in housing market regulation is associated with a 0.11-0.22sd decline in the turnover rate. Second,...

We exploit the staggered and discontinuous changes in interest rates among adjustable rate mortgages to identify the effects of foreclosures independently of housing prices. First, interest rate resets predict foreclosure, accounting for up to 18% of the change in foreclosures. Second, a 10%...

This study examines how the changing composition of adult educational attainment in cities affects the distribution of wages and rents in those cities. We extend the Rosen-Roback spatial equilibrium model to show that as the share of college graduates increases, the impact of this change on the...

Literature acknowledges various reasons for the natural resources curse, i.e., the tendency of countries that are abundant in natural resources to be relatively poor. However, all these reasons relate to the wealth effect created by natural resources, i.e., the increase in the income of a...

We aim to explain petro populism - the excessive use of oil revenues to buy political support. To reap the full gains of natural resource income politicians need to remain in office over time. Hence, even a purely rent-seeking incumbent who only cares about his own welfare, will want to provide...

We present a simple model of internal and external balance that incorporates the key features of resource-rich developing countries (RRDCs). The main result is that “government take", which is the ratio of fiscal resource revenue to resource output, is a key determinant of the equilibrium real...

Although the core model of the Dutch Disease makes unambiguous predictions regarding the negative effect of a resource boom on a country's manufacturing exports, the empirical literature that has followed has not clearly identified this effect. I attribute this to the failure of the existing...