The basic trade union model is extended to allow for a more sophisticated unemployment benefit system consisting of two benefit levels, one for short-term and one for long-term unemployed, and a rule determining whether an unemployed is short- or long-term. The purpose of this extension is...

The present paper follows the line of the effectivity function approach to social choice theory. We discuss core selections and present a non-neutral core selection, the P-subcore, and we rank this with two other core selections. We conclude by presenting a characterization of strongly...

Using a dynamic model with uncertainty and asymmetric information, we study the impact of debt on managerial compensation and performance targets. In this model, compensation has two roles to play – providing incentives to the manager and learning about his type. We show that debt acts as a...

An analysis of some identification problems in the cointegrated VAR is given. We give a new criteria for identification by linear restrictions on individual relations which is equivalent to the rank condition. We compare the asymptotic distribution of the estimators of a and ß; when they are...

This paper examines numerically the impact of a negative exogenous shock to marginal productivity (such as ecological government regulation that becomes effective at some point in time) in an endogenous finite-time growth model with sluggish reallocation of human capital. The policy can be...

For cooperative games side payments the prenucleolus has been characterized by a reduced game property. By contrast, for games without side payments several proposals have been made as how to define the nucleolus, i.e. what choice of excess functions is appropriate. In this paper we modify the...

We compare the wage and employment consequences of a job displacement in Belgium and Denmark. These two countries both have generous unemployment insurance schemes but job protection laws vary dramatically between the two. Using comparable data we find that the incidence of displacement and the...

This paper uses a survey of 932 rural households to uncover how the rural credit market operates in four provinces of Vietnam. Households obtain credit through formal and informal lenders, but formal loans are almost entirely for production and asset accumulation. Interest rates fell from 1997...

This paper extends learning concepts developed in economics to take into account the fact that agents are not fully rational. Contrary to scholars who model individuals as if they know the equilibrium relationships between market prices and private signals a dynamic process is proposed, by means...

Preferences are converging, and consumer aspirations are increasing in poor as well as rich countries, including Eastern Europe where they were part of the reasons for 1989 together with popular aspirations for democracy. The unanimously proposed means are converging towards marketisation and...