Indexation Rules, Risk Aversion, and Imperfect Information

Nominal wage adjustment is modeled as resulting from bargaining between a risk neutral firm and a risk averse worker, in an environment where the rate of inflation is a random variable. Risk aversion makes for endogenous indexation arrangements, which deliver partial indexation as they exploit imperfect inflation indices; risk aversion also generates a positive correlation between indexation and inflation variance. The model suggests a distinction between complete vs incomplete inflation adjustment on the one hand, and perfect vs imperfect adjustment on the other hand

Effects of phase transitions in devices actuated by the electromagnetic vacuum force

We study the influence of the electromagnetic vacuum force on the behaviour of a model device based on materials, like germanium tellurides, that undergo fast and reversible metal-insulator transitions on passing from the crystalline to the amorphous phase. The calculations are performed at finite temperature and fully accounting for the behaviour of the material dielectric functions. The results show that the transition can be exploited to extend the distance and energy ranges under which the device can be operated without undergoing stiction phenomena. We discuss the approximation involved in adopting the Casimir expression in simulating nano- and micro- devices at finite temperature