Mechanism design or implementation theory, which studies the design of institutions or mechanisms implementing collective decisions under different circumstances, has been a major research area in the last three decades. hannu Vartiainen's doctoral dissertation analyzes several issues in this...

In this paper, we provide evidence that the rate of return to schooling varies across individuals and this variation is responsible for much of the variation in the length of schooling.

Credit channel as a channel of influence of financial factors on the real economy has been an intensive subject of both theoretical and empirical research during the last twenty years. Leena Morttinen's doctoral dissertation deals with several topics in this area. The first essay studies the...

Previous literature indicates that stock returns are predictable by several strongly autocorrelated forecasting variables, especially at longer horizons. It is suggested that this finding is spurious and follows from a neglected near unit root problem. Instead of the commonly used t test we...

We consider an endogenous growth model which includes international trade in capital goods. The model yields several distinct balanced growth solutions which can be classified using stability under adaptive learning. Some of the equilibria can involve growth rates much higher (or lower) than others.

We offer a unified framework to analyze the determination of employment, employee effort, wages, profit-sharing and capital structure when firms face stochastic revenue shocks. We apply a generalized Nash bargaining solution, which extends the wage bargaining literature by incorporating...

It may be in the interest of low-ability individuals to subsidize the education of high-ability individuals. Sufficient conditions are surprisingly mild: positive externalities in education and complementarity in production between human capital and labor supplied by the low-ability individuals....