In this paper we study the evolution of the labor share in the OECD since 1970. We show it is essentially related to the capital-output ratio; that this relationship is shifted by factors like the price of imported materials or the skill mix; and that discrepancies between the marginal product of labor and the real wage (due to, e.g., product market power, union bargaining, and labor adjustment...

We examine a vertically differentiated duopoly where firms invest in process and product innovation and then compete in prices under full market coverage. We show that (i) process and product innovation are complements (substitutes) for the low-quality (high-quality) firm; (ii) the firm which is initially more efficient invests more than the rival in process innovation; (iii) if the initial dif...

In Year 1, there are only ten factories, which can employ a maximum of 100 workers. Hence most farms will still have all five siblings working there. The total farm income will be $100, so the average product of labor is $20 = 100 5 . The marginal product is 0, since when there are at least three siblings working on the farm, any additional worker does not increase farm income. Consequently two...

We consider a Jackson network in which some of the nodes have an infinite supply of work: when all the customers queued at such a node have departed, the node will process a customer from this supply. Such nodes will be processing jobs all the time, so they will be fully utilized and experience a traffic intensity of 1. We calculate flow rates for such networks, obtain conditions for stability,...

We consider a Jackson network in which some of the nodes have an infinite supply of work: When all the customers queued at such a node have departed, the node will process a customer from this supply. Such nodes will be processing jobs all the time, so they will be fully utilized and experience traffic intensity of 1. We calculate flow rates for such networks, obtain conditions for stability, a...

Recently, the quality and safety of organic products is the topic of prime concern. While this demand increases since consumer considers organic products are healthier and harmless than conventional products. In the country like India, organic agricultural is not novel and are effectively performs in varied climates such as tribal mountains, mountainous areas and rain-fed zones of the country. ...

According to the authors, time-modified confounding occurs when the causal relation between a time-fixed or time-varying confounder and the treatment or outcome changes over time. A key difference between previously described time-varying confounding and the proposed time-modified confounding is that, in the former, the values of the confounding variable change over time while, in the latter, t...

The penetration speed of global Internet access has been extraordinary in the past decade. This phenomenon results in a near zero-time distribution of digital goods from companies to their customers. It also further reduces the already low “production” costs, where digital goods such as computer software and music songs are stored in CD/DVD, cassette tapes, floppy disks or other similar media, ...

This article studies the role of installment payments in relationships characterized by moral hazard and sunk costs. We rule out vertical integration and payments contingent on the product of the contractor. Instead, each payment is negotiated as and when made. In such circumstances, an initial (down)payment serves to redress the weakness of the contractor in ex post renegotiations. Ifhigher ef...

Previous theoretical researches show that learning from good performers yields intense competition and results in the low profitability of firms. These researchers do not take into account differentiation strategies being referred as a useful strategic tool to mitigate competition. We introduce an evolutionary (learning) game into a duopoly model with product differentiation on the Hotelling li...