Several empirical studies report the existence of declining terms of trade between commodities and manufactures, supporting the Prebisch-Singer hypothesis. As globalization leads to greater integration of markets, we ask if in a fully integrated economy the terms of trade will display the same...

Work ethics affects labor supply. This idea is modeled assuming that work is habit forming. This paper introduces working habits in a neoclassical growth model and compares its outcomes with a model without habit formation. In addition, it analyzes the impact of different forms of technical...

A dynamic model of a terrorist organization is presented with the defining feature being that a succession of operatives is recruited at different points in time. Consequently, a government’s counterterror policy must be tailored according to the vintage structure of the terrorist group...

This study develops a vintage model of the tenure and academic promotion process within the American higher education system. In this process, one’s professional academic achievements and the characteristics of one’s university affiliation work to either increase or reduce the probability of...

This paper studies the impact of mortgages on consumer debt and on debt on durable goods. Outstanding debt, representing mortgages, affects positively consumer debt, and the debt on durable goods. This hypothesis is empirically tested for the U.S. using PSID 2005 wave. Our results are striking....

This article presents a dynamic model in which counterterrorism policies have the potential to generate positive public support for terrorism via a backlash that may fuel terror recruitment. For an optimizing government aiming at maximizing security, this phenomenon produces a natural bound on...

This article introduces integro-differential equations as a new technique to study terrorism dynamics. An integro-differential equation is a mathematical expression that contains derivatives of the required function and its integral transforms. The technique is applied to two different dynamic...