It is well-documented that employers refuse to hire workers who offer their services at less than the prevailing wage. The received explanation is that workers are motivated by reciprocity they desire to reward kindness and punish hostility. To refuse an outsider’s under-bid is viewed as a kind choice that is met with good effort; a low wage is viewed as an insult that is met with shirking. We...

Logistic smooth transition and Markov switching autoregressive models of a logistic transform of the monthly US unemployment rate are estimated by Markov chain Monte Carlo methods. The Markov switching model is identified by constraining the first autoregression coefficient to differ across regimes. The transition variable in the LSTAR model is the lagged seasonal difference of the unemployment...

To clarify the causal links between financial activity and economic growth, three theoretical models are analyzed and a structural equation path models is estimated. In the modeling part, poverty traps result from large fixed costs or high proportions of real investment to run a financial sector. Human capital allocated to financial activities will improve long-run levels but may reduce growth ...

What are the impacts on household incomes of the major economic downturn that occurred in almost all OECD countries starting in late 2007? This paper is a condensed version of a public lecture given at the University of Melbourne in honour of R. I. Downing. It draws on a study of 21 rich countries using data from national accounts, household surveys, and other sources. The headline findings are...

Flexibility vs. Rigidity: Does Spain have the worst of both Worlds? In this paper we study the structure of labor market flows in Spain and compare them with France and the US. We characterize a number of empirical regularities and stylized facts. One striking result is that the job finding rate is slightly higher than in France, while the jon loss rate is much higher, putting Spain half-way be...

Using administrative payroll data from the largest US processing company, we measure extent of nominal wage rigidity in United States. The allow us to define a worker’s per-period base contract separately other forms compensation such as overtime premiums and bonuses. We provide evidence that firms use wages cyclically adjust marginal cost their workers. Nominal declines are much rarer than pre...

This article presents an analysis of the current tenets Social teachings Catholic Church and their possible compatibility with free market theory practice. According to Author, Austrian School Economics, around creative entrepreneurship dynamic efficiency, can provide a new fruitful nexus between market.
 Key words: Doctrine, market, classical liberalism, entrepre-neurship, School.
 J...