Economics - Research Publications

Permanent URI for this collection

Search Results

Now showing 1 - 6 of 6
  • Item
    Thumbnail Image
    Choosing longevity with overlapping generations
    Chen, Weichun ; Engineer, Merwan ; KING, IAN ( 2007-09)
    We extend Diamond’s (1965) OLG model to allow agents to choose whether toparticipate in the second period of life. The valuation of early exit (x) is a keyparameter. We characterize competitive equilibria, efficient allocations, andpredictions for income and life expectancy over time. We find that, with logarithmicutility, for any value of x, there is a range of initial values of the capital stock forwhich some agents would prefer to exit in equilibrium. The shape of the transitionfunction and the number of steady state equilibria depend crucially on the value ofcapital’s share of income.
  • Item
    Thumbnail Image
    Ex post bidding and efficient coordination unemployment
    Julien, B ; Kennes, J ; King, I (WILEY, 2005-02)
    Abstract.  We study the implementation of constrained‐efficient allocations in labour markets where a basic coordination problem leads to an equilibrium matching friction. We argue that these allocations can be achieved in a non‐cooperative equilibrium if wages are determined by ex post bidding. This holds true even in finite‐sized markets where the equilibrium‐matching process has decreasing returns to scale – where the ‘Hosios rule’ does not apply – both with and without heterogeneity. JEL classification: D83, J64
  • Item
  • Item
    Thumbnail Image
    Economic progress and skill obsolescence with network effects
    Kennedy, PW ; King, IP (Springer Science and Business Media LLC, 2005-07)
  • Item
    Thumbnail Image
    Residual wage disparity and coordination unemployment
    Julien, B ; Kennes, J ; King, I (WILEY, 2006-08)
    How much of residual wage dispersion can be explained by an absence of coordination among firms? To answer, we construct a dynamic directed search model with identical workers where firms can create high‐ or low‐productivity jobs and are uncoordinated in their offers to workers, calibrated to the U.S. economy. Workers can exploit ex post opportunities once approached by firms, and can conduct on‐the‐job search. The stationary equilibrium wage distribution is hump‐shaped, skewed significantly to the right, and, with baseline parameters, generates residual dispersion statistics 75–90% of those found empirically. However, the model underestimates the average duration of unemployment.
  • Item
    Thumbnail Image
    Bidding for money
    Julien, B ; Kennes, J ; King, I (ACADEMIC PRESS INC ELSEVIER SCIENCE, 2008-09)