Abstract This paper discusses an approach to implement output quotas in the GTAP model which permits an endogenous adjustment of both the supplied quantity and the quota rent. Since the quota rent is interpreted as additional earnings of the factors used no change of the worldwide GTAP data base

This paper considers propagation of aggregate shocks in a dynamic general-equilibrium model with labor-market matching and endogenous job destruction. Cyclical fluctuations in the job-destruction rate magnify the output effects of shocks, as well as making them much more persistent. Interactions

is in the background, as we focus on the endogenous adjustment of network size. We investigate the long-run behavior of firm/network size as a function of profits, rival’s size, and the type of adjustment rules used.

In econometric risk-adjustment exercises, models estimated with one or more included endogenous explanatory variables ("risk adjusters") will generally result in biased predictions of outcomes of interest, e.g. unconditional mean healthcare expenditures. This paper shows that a first

In this paper we investigate the incentives of unemployed workers to wait for a recall when recall probabilities are endogenously determined by the waiting decisions of others. Because of a positive externality that arises when workers seek new employment, an excessive number of workers choose

In this paper we investigate the incentives of unemployed workers to wait for a recall when recall probabilities are endogenously de-termined by the waiting decisions of others. Because of a positive externality that arise when workers seek new employment, an exces-sive number of workers choose

The utility function known as “constant relative risk aversion ” (CRRA) is generally considered more plausible than specifications that imply certainty equivalence or constant absolute risk aversion, and for this reason has become the dominant specification of one-period utility in both macro and finance models. The identification of the power utility specification, for example, the utility function ρ− ρ− 1 c)c(u

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and endogenous cognitive control. brain networks ͉ cognitive control ͉ insula ͉ attention ͉ prefrontal cortex O ne distinguishing feature of the human brain, compared with brains lower on the phylogenetic ladder, is the amount of cognitive control available for selecting, switching, and attending to salient

We extend the basic (representative-household) New Keynesian [NK] model of the monetary transmission mechanism to allow for a spread between the interest rate available to savers and borrowers, that can vary for either exogenous or endogenous reasons. We find that the mere existence of a positive