Empirical models of labour supply adopting the collective approach have commonly used the decentralized representation and a reduced form specification of the sharing rule. This procedure has two crucial drawbacks that in principle make it inappropriate for the very same type of applications...

This paper contributes to the debate on the design of a centralised fiscal tool absorbing country-specific negative shocks in the euro area. Based on theoretical insights, it identifies the broad characteristics that a shock absorber based on unemployment should have in order to be...

The standard approach to the estimation of unemployment persistence assumes that quantile parameter heterogeneity does not matter. Using panel quantile autoregression techniques on state-level data for the United States (1980-2010), we suggest that it does.

How does measured performance at university affect labor market outcomes? We show that degree class – a coarse measure of student performance used in the UK – causally affects graduates' industry and hence expected wages. To control for unobserved ability, we employ a regression...

This paper takes a retrospective look at the U.S. government's effort to rescue and restructure General Motors and Chrysler in the midst of the 2009 economic and financial crisis. The paper describes how two of the largest industrial companies in the world came to seek a bailout from the U.S....

The implementation of Gary Becker's (1965) time allocation model is hampered by the fact that values of the different time uses are usually not observed. In practice, one often assumes that the value of time is uniform across time uses by using market wages. This approach implies a fundamental...

The strong economic ties between the GCC economies and the U.S. are manifested in three ways: currency peg, coupling of monetary policy, and the adoption of the U.S. dollar as the trading currency for oil. This paper examines how these dynamics result in a misalignment of the U.S. monetary...

This paper estimates peer effects originating from the ability composition of tutorial groups for undergraduate students in economics. We manipulated the composition of groups to achieve a wide range of support, and assigned students – conditional on their ability – randomly. The data...

We investigate unemployment due to mismatch in the US over the past three decades. We propose an accounting framework that allows us to estimate the overall amount of mismatch unemployment as well as the contribution of the frictions that caused the mismatch. Mismatch is quantitatively important...

A critical part of adapting to the higher temperatures that climate change brings will be the deployment of existing technologies to new sectors and regions. This paper examines the evolution of the temperature-mortality relationship over the course of the entire 20th century in the United...