This article studies the stabilization effect of monetary policy reacting to asset price, accounting for the expectations formation effect of policy regime shift, in a DSGE model calibrated to the US economy. In contrast to the linear policy rule that generates negligible stabilization effect from responding to asset prices, the regime switching policy rule can significantly stabilize inflation…

A large literature links currency crashes and reversals in a country�s net external borrowing to output losses. In this article, we find that contractions in the stock of gross foreign claims on a country�a phenomenon we call gross foreign investment reversals (GIRs)�are also associated with output declines. GIRs are specially harmful during currency, current account, and sudden …

In this article we estimate the effect of spousal labour force participation on the participation of older men in Australia. We find that the decision of a wife to work or not influences positively, and in a causal fashion, the decision of her husband to work or not. We use counterfactual analysis to estimate the impact of the increasing labour force participation of a wife on her husband�…

Studies suggest research productivity falls after tenure. We have limited choicetheoretic understanding of why this should occur. We rationalize this as follows. Some scholars are assumed to be �specialists�: their research productivity consists of transforming dissertation chapters into publishable papers. We show how a department that hired such a scholar provides incentives to maxi…

Drawing on psychological theories of social identity and cognitive dissonance, we develop a dynamic model for the evolution of female labour supply. We assume that agents, in addition to consumption and leisure, also derive utility from complying with social and personal norms such that deviations from norms induce psychological costs. An important contribution is that we allow for conflicting …

Increases in standard hours of work have been a contentious policy issue in Germany. Whilst this might directly lead to a substitution of workers by hours, there may also be a positive employment effect due to reduced costs. Moreover, the response of firms may differ between firms that offer overtime and those that do not. For a panel of German plants (2001�2006) drawn from the IAB Establi…

We construct a simple model incorporating various urban labour market phenomena obtaining in developing economies, and we give a diagrammatic formulation of the market equilibrium. Our initial formulation assumes an integrated labour market and allows for entrepreneurship, self-employment, and wage employment. We then introduce labour market segmentation. In equilibrium voluntary and involunta…

A disturbing phenomenon in modern welfare states is the positive correlation in the probability of receiving disability benefits across generations. Understanding the intergenerational transmission mechanism is crucial, especially when the proportion of the working-age population receiving public benefits or support is increasing in most OECD countries. Using data from Norway, a country where a…

Tahun Terbit

2014

We study the nexus between US economic and military aid, human rights conditions, and the emergence of anti-American transnational terrorism in aid-receiving countries. Using data from 126 countries for the period 1984�2008, we show that a combination of local repression and military or economic dependence on the USA results in more anti-American terrorism. This relationship only breaks do…