In this paper we extend models of market equilibrium from binary occupational choices of people with different entrepreneurial ability, to the realistic case that entrepreneurs can decide whether they hire workers and become employers or whether they become own account self-employed. We find...

This paper presents estimates of the elasticity of price to cost increases in a sample of Spanish firms during the 2022-2023 cost-induced inflationary episode. We found that the sample average elasticity of price to cost changes is less than 1, being higher among firms that perceive more intense...

This paper extends the Lucas (1978) model of occupational choices by individuals with different skills, beyond the simple options of self-employment or wage-employment, by including a second choice for the self-employed. That is, an option to hire employees and so become self-employed with...