Showing papers in "European Economic Review in 1987"

TL;DR: In this paper, the authors compare various dimensions of inequality between different countries, including, particularly, those relating to income and wealth, and find that mortality is easier to define than income, and there is no problem equivalent to that of defining the income unit.

TL;DR: In this article, the authors analyzed the structure of credit market equilibrium under imperfect information and compared credit rationing and Collateralization as alternative means to cope with problems of adverse selection and moral hazard.

TL;DR: The authors make a sharp distinction between equilibrium and actual unemployment, and make a distinction between the two types of economic variables, i.e., demand and supply changes, leading to deviations of actual unemployment from equilibrium and these deviations in turn trigger changes in the rate of inflation, which lead eventually to areturn to equilibrium.

TL;DR: In this article, the authors study the Markov perfect equilibrium of an alternating move, infinite horizon duopoly model where the strategic variable is quantity and demonstrate that the MPE corresponding to the solution is the limit of the finite horizon equilibrium as the horizon tends to infinity.

TL;DR: In this paper, the authors present a model of the multinational corporation focusing on a foreign firm which wishes to operate in a particular country, and consider how government policy may influence this choice.

TL;DR: In this paper, the implications of long-term wage contracts and investment in capital on non-cooperative wage bargaining between a firm and a union are analyzed, and the results are illustrated with a numerical example.

TL;DR: In this article, the authors consider a labor market containing firm-specific unions facing labor demand shocks which are transient (in the sense that the distribution of shocks has a constant mean and finite variance).

TL;DR: In this article, advertising effects appear to be so weak as to give little, if any, support for the Galbraithian view that advertisers exert powerful, manipulative effects upon the allocation of consumers' expenditure between products.

TL;DR: In this article, the authors compare two theories of involuntary unemployment: the efficiency-wage theory and the insider-outsider theory and indicate that one of the central problems in providing microfoundations for the existence of involuntary employment is to explain why there is no underbidding, and compare the two theories in this contex.

TL;DR: The authors investigated these biases in the context of a lifecycle earnings model and showed that these biases may be large, that their direction varies, and that correction methods suggested previously have questionable reliability.

TL;DR: In this article, the optimal dynamic mechanism is derived under possible commitment of the regulator over time, under non-commitment, and also the profile of effort levels is compared to the commitment case.

TL;DR: In this paper, a second best analysis where second best stems from informational asymmetries which prevent the implementation of lump-sum transfers needed for a first-best redistribution policy is proposed.

TL;DR: In this paper, the effect of changes in the average rate and in the progressivity of direct taxes on the level of wages and the extent to which cost-of-living increases are transmitted to wages are considered for a unionized labour market.

TL;DR: The authors showed that life cycle and demographic variables explain about two-thirds of the observed variation in the saving rates of OECD nations during the 1970s, and that the labor force participation rate of the working age population is an important determinant of the aggregate saving rate.

TL;DR: This article showed that increases in employment in Europe are associated with rising real take-home pay for workers because of fiscal increasing returns, and that tax cuts would succeed in stimulating employment under a variety of plausible conditions.

TL;DR: The authors studied the dynamic behavior of changes in productivity, wages, and prices in the U.S., Japan, and an aggregate called "Europe" consisting of eleven European economies and found that real wages in Europe and Japan were too flexible rather than too rigid, and that much of the increase in wage gap indexes in Europe during 1968-70 and in Japan in 1973-74 can be interpreted as autonomous wage push.

TL;DR: In an age when economic science thinks it important to be empirical and quantitative, a merit of the paper is surely its effort to support by numbers and facts the assertions that are made as mentioned in this paper.

TL;DR: In this paper, the equilibrium effects of minimum wage legislation in an economy with coexisting primary and secondary labor markets were studied, and they showed that minimum wage laws affect the primary wage and employment level, even if the law only binds in the secondary labor market.

TL;DR: The authors describes how imperfect information in both capital and labor markets can, in a context of maximizing firms and perfectly flexible prices and wages, give rise to cyclical variations in unemployment whose character closely resembles that of observed business cycles.

TL;DR: The authors showed that firms whose workers and partners coincide behave properly as price-takers, adjusting employment and the supply of output in the same direction as the relative price of the product, thus belying the usual theory in which labor-managed firms tend to curtail employment and output in their short-run response to an increase in output price.

TL;DR: In this article, the effects of uncertainty on pure public good provision and free-riding behavior are examined in two models: Nash behavior and non-Nash behavior, and uncertainty concerns the nonzero response that a representative individual's optimizing choice will cause in the community.