Under expected utility theory, compound lotteries can be valued by "iterating" expectations: the expected utility of a compound lottery is the expected value of a simple lottery over prizes that are certainty equivalents to follow-up lotteries. We derive necessary and sufficient conditions for a...

We consider a general framework to study the evolution of wage and earnings residuals that incorporates features highlighted by two influential but distinct literatures in economics: (i) unobserved skills with changing non-linear pricing functions and (ii) idiosyncratic shocks that follow a rich...

At the level of theory, the effect of collective bargaining on innovation is disputed. The U.S. evidence clearly points to adverse effects, but other-country experience suggests that certain industrial relations systems, or the wider regulatory apparatus, might even tip the balance in favor of...

The article deals with the problem of West European and Nordic countries small economies as well as ultra-small autonomous territories of Alands and Faeroes island's development. The latter are considered as the «competitive sub-peripheries» areas due to the special industrial organization...

We propose an instrumental variables method for inference in high-dimensional structural equations with endogenous regressors. The number of regressors K can be much larger than the sample size. A key ingredient is sparsity, i.e., the vector of coefficients has many zeros, or approximate...

Differences across decades in the counter-cyclical stance of fiscal policy can identify whether the growth in government spending affects output growth and so speeds recovery from a recession. We study government-spending reaction functions from the 1920s and 1930s for twenty countries. There...

This manual describes the usage of the accompanying freely available software package for estimation and testing in the fractionally cointegrated vector autoregressive (VAR) model.

China, Thailand, and Vietnam are key players in world rice market in terms of production and trade. In the past few decades, rice policies in these three countries have changed significantly resulted in changes in production, exports and influences in the world market. This paper reviews major...

This paper investigates whether chronic illnesses and injuries have a significant impact on individual performance in the labor market. We use the "Santé et Itinéraires Professionnels" (SIP, "Health and Labor Market Histories") survey, conducted in France in the period 2006-2007. We evaluate...

The relative efficiency of auctions and negotiations is still a puzzle in the literature. While auctions are the prescribed procedures and the most used ones for public procurement, in the private sector, where buyers are free to choose their purchasing method, competitive tendering is far from...