This paper examines turnover of workers and jobs on the panel of all plants in Danish manufacturing for the years 1980-1991. We relate worker turnover to job turnover with a focus on the share of worker reallocation driven by job reallocation, and we consider the behavior of job and worker flows...

In this paper we contribute to the study of how democracy works when politicians are better informed than the electorate about conditions relevant for policy choice. We do so by setting up and analyzing a game theoretic model of electoral competition. An important feature of the model is that...

von Neumann Morgenstern utility is generalized to von Neumann Morgenstern preferences. The proof is an application of simple hyperplane theorems.

An important feature of the world economy is the close global and regional integration due to strong trade and investment relations among countries. The high degree of integration between countries is likely to give rise to business cycle synchronisation in which case shocks will spillover from...

The paper analyses the effect of uncertainty in a two stage duopoly model in which firms first choose capacity, then prices. We show that no pure strategy Nash equilibrium exists regardless of whether the realization of demand is known to firms before or after they choose their prices. On the...

This paper develops a dynamic general equilibrium model combining standard theory of labour unions and capital accumulation. Comparison of results stemming from labour unions and perfect competition in the labour market shows that predictions regarding growth rates during transition are...

Collective consumption decisions taken by the members of a household may prove inefficient. The impact of such inefficient household decisions on market performance is investigated. At one extreme, market efficiency can occur even when household decisions are inefficient, namely when household...

This paper anlyses how parental education affects child human capital outcomes, using household survey data from Mozambique. Four indicators of human capital are examined: height-for-age of children below 5 years of age, children''s rate of survival, children''s education, and total fertility of...

The present paper provides a new theory of capital accumulation and growth. While the law of motion for capital per worker is structurally identical to that of the neoclassical growth model (Solow, 1956), the underlying foundation is very different. In contrast to the Solow model, the purposed...

The note shows that the following features of a consumption sector tends to enforce the "Law of Demand": The statistical Engelcurves "bend slowly" and there is sufficiently "dispersion" in the distribution of income.