Speed limit policy, a monetary policy strategy that focuses on stabilizing inflation and the change in the output gap, consistently delivers better welfare outcomes than flexible inflation targeting or flexible price level targeting in empirical New Keynesian models when policymakers lack the ability to commit to future policies. Even if the policymaker can commit under an inflation targeting s...

The study shows that subjects who set their minimum acceptable offer equal to zero in an ultimatum game (UG) are the most generous dictators in a dictator game. The finding implies that interpreting indiscriminately the acceptance of low UG offers as payoff maximization can be misleading and suggests that altruism and/or the desire to maximize welfare are to a large extent behind. JEL Classific...

In 1998, nearly one-third of Vietnamese children engaged in non-housework labor supply, 95% of these working children residing in rural areas. This paper investigates the impact of child labour on children’s educational outcomes in rural Vietnam using the 1998-Vietnam Living Standard Survey. The paper finds that child labor lowers children’s academic performance and the negative impact is bigge...

In this article, we construct a model to study competing payment networks, where networks offer differentiated products in terms of benefits to consumers and merchants. We study market equilibria for a variety of market structures: duopolistic competition and cartel, symmetric and asymmetric networks, and alternative assumptions about consumer preferences. We find that competition unambiguously...

In an asset-pricing model, risk-averse agents need to forecast the conditional variance of a stock’s return. A near-rational restricted perceptions equilibrium exists in which agents believe prices follow a random walk with a conditional variance that is self-fulfilling. When agents estimate risk in real-time, recurrent bubbles and crashes can arise. These effect are stronger when agents allow ...

In this paper we characterise the selection into parenthood for men and women separately and estimate effects of motherhood and fatherhood on wages. We apply propensity score matching exploiting an extensive high-quality register-based data set augmented with family background information. We estimate net effects of parenthood and find that mothers receive 7.4% lower average wages compared to n...

In this article, we propose an organizational communication oriented approach to Risk Management. The business domain studied here is the pharmaceutical industry, which has a high sensitivity to communication. Through two examples, we show how and in which context risk management can be an essential component in corporate management, by laying partially aside financial aspects, although they ar...

The authors use a laboratory experiment to examine the impact of relative wages on labor supply. They test the hypothesis that, ceteris paribus, making a given wage high (low) relative to other wage levels will lead to an increase (decrease) in labor supply. They find that labor supply does respond significantly to relative pay, and in the expected direction. However, when a strong enough reaso...

A peer worker is introduced in a controlled labor market experiment characterized by unobservable effort and incomplete contracts. Workers make decisions independently and without knowledge of each others’ actions in a modified gift exchange experiment. Introducing a peer worker into an ongoing market has a negative and significant effect on effort This decrease in effort is consistent with res...

This paper analyzes the output]energy relationship with alternative measures of output and energy. Our analysis rejects the hypothesis of non-diminishing returns to energy consumption when GDP at purchasing power parities is used as the output measure unlike the case with GNP at market exchange rates. This finding also holds when energy input includes the usage of both commercial and traditiona...