A small literature on General Purpose Technology has emerged in recent years. It has studied a number of channels through which a new technology affects the economy, such as secondary innovations and diffusion. Our goal is to examine new channels of adjustment that operate through labor markets....

We examine the effects of the interaction between lobbying and legislative bargaining on policy formation. Two systems are considered: a US-style congressional system and a European-style parliamentary system. First we show that the policies generated are not intermediate between policies that...

World merchandise exports amounted to 5.3 trillion us dollars in 1997 and exports of commercial services amounted to 1.3 trillion. These are unpecedented volumes that have expanded much faster than income in the post-war period. More than half of the volume of merchandise trade flows amongst...

We develop an equilibrium model of industrial structure in which the organization of firms is endogenous. Differentiated consumer products can be produced either by vertically integrated firms or by pairs of specialized companies. Production of each variety of consumer good requires a unique,...

We develop a model of common agency with complete information and general preferences with non-transferable utility, and prove that the principales'Nash equilibrium in truthful strategies implements an efficient action.