Equilibrium Layoff As Termination of a Dynamic Contract

In a dynamic model of the labor market with moral hazard, equilibrium layoff is modeled as termination of an optimal long-term contract. Termination, together with compensation (current and future), is used as an incentive device to induce worker efforts. I then use the model to study analytically the effects of a firing tax on termination and worker compensation and utility. There are three layers to the impact of a firing tax on layoff and worker utility. A higher firing tax could either reduce aggregate termination and increase worker utility, or increase aggregate termination and reduce worker utility, depending on the structure of the environment.

Truss Decomposition in Massive Networks

The k-truss is a type of cohesive subgraphs proposed recently for the study of networks. While the problem of computing most cohesive subgraphs is NP-hard, there exists a polynomial time algorithm for computing k-truss. Compared with k-core which is also efficient to compute, k-truss represents the "core" of a k-core that keeps the key information of, while filtering out less important information from, the k-core. However, existing algorithms for computing k-truss are inefficient for handling today's massive networks. We first improve the existing in-memory algorithm for computing k-truss in networks of moderate size. Then, we propose two I/O-efficient algorithms to handle massive networks that cannot fit in main memory. Our experiments on real datasets verify the efficiency of our algorithms and the value of k-truss.Comment: VLDB201