This paper combines the recent game theoretic approach of endogenous timing of entry to herding models with a macroeconomic model of investment cycles. The integrated description embodies the qualitative results of the myopic herding model in a medium run investment objective of smoothing the capital stock adjustment process. It features a completely disaggregated structure and bears the potent...

We revisit the discussion about the relationship between price’s cyclical features, implicit collusion and the demand level in an oligopoly supergame where a positive shock may hit demand and disrupt collusion. The novel feature of our model consists in characterising the post-shock noncooperative price and comparing it against the cartel price played in the last period of the collusive path, t...

In this paper I study the link between innovation efforts, competition, and aggregate uncertainty. A productive sector consists in a continuum of duopolies that face a stochastic aggregate demand. In each industry the two firms choose their level of innovation through intertemporal optimization given their respective market power in the business. Since competition in the model lessens ex ante p...

This paper develops a dynamic model of mismatch. Workers and jobs are randomly assigned to labor markets. Each labor market clears at each instant but some have more workers than jobs, hence unemployment, and some have more jobs than workers, hence vacancies. As workers and jobs move between labor markets, some unemployed workers find vacant jobs and some employed workers lose or leave their jo...

Using two data sets derived from German administrative data, including a linked employer-employee data set, we investigate the cyclicality of worker and job flows. The analysis stresses the importance of two-sided labour market heterogeneity in this context, taking into account both observed and unobserved characteristics. We find that small firms hire mainly unemployed workers, and that they d...

Abstract We examine the retail prices and wholesale prices of a large supermarket chain in Chicago over seven and one-half years. We show that prices tend to fall during the seasonal demand peak for a product and that changes in retail margins account for most of those price changes. Moreover, we find that retails margins are reduced during peak periods of demand for specific goods even if thes...

We estimate the causal effect of nurse turnover on mortality and the quality of nursing home care with a fixed effect instrumental variable estimation that uses the unemployment rate as an instrument for nursing turnover. We find that ignoring endogeneity leads to a systematic underestimation of the effect of nursing turnover on mortality and quality of care in a sample of California nursing ho...

Motivated by recent findings on the cyclical movement of both health and health spending, we construct a general equilibrium model that distinguishes health care demand from the demand for other goods. Using this model, we are able to generate inflation dynamics and cyclicality of health that match the US data. When the model is subjected to an expansionary monetary policy shock, it yields diff...

Although fiscal policies of central governments sometimes provide modest insurance against regional income shocks, this paper shows that procyclical fiscal policy among provincial governments can easily overwhelm these stabilizing effects. We examine the cyclicality of budget items among provincial governments in seven federations, showing that own-source taxes are generally highly procyclical,...

Article history: Received 13 October 2011 Accepted 26 December 2011 Available online 3 January 2012 This paper examines the determinants of the signaling effect of acquiring lines of credit (LCs) on borrower stock returns by testing the economic conditions and lending competitionhypotheses. The economic conditions hypothesis is tested by examining the loan cyclicality and handpicking effects. T...