Embodied technical change and the fluctuations of wages and unemployment

The paper shows that a matching model where technological change is partially embodied in the job match is successful in explaining the variability of unemployment and vacancies. If we incorporate long-term wage contracts into the model, it also explains a number of stylized facts on the dynamics of real wages, which have been found in the empirical labor literature.Unemployment, wage dynamics, embodied technical change

Credit Card Debt Puzzles

Most US credit card holders revolve high-interest debt, often combined with substantial (i) asset accumulation by retirement, and (ii) low-rate liquid assets. Hyperbolic discounting can resolve only the former puzzle (Laibson et al., 2003). Bertaut and Haliassos (2002) proposed an ‘accountant-shopper’ framework for the latter. The current paper builds, solves, and simulates a fully-specified accountant-shopper model, to show that this framework can actually generate both types of co-existence, as well as target credit card utilization rates consistent with Gross and Souleles (2002). The benchmark model is compared to setups without self-control problems, with alternative mechanisms, and with impatient but fully rational shoppers.Credit Cards, Debt, Self Control, Household Portfolios

Credit card debt puzzles

Most US credit card holders revolve high-interest debt, often combined with substantial (i) asset accumulation by retirement, and (ii) low-rate liquid assets. Hyperbolic discounting can resolve only the former puzzle (Laibson et al., 2003). Bertaut and Haliassos (2002) proposed an 'accountant-shopper'framework for the latter. The current paper builds, solves, and simulates a fully-specified accountant-shopper model, to show that this framework can actually generate both types of co-existence, as well as target credit card utilization rates consistent with Gross and Souleles (2002). The benchmark model is compared to setups without self-control problems, with alternative mechanisms, and with impatient but fully rational shoppers.Credit cards, debt, self control, household portfolios

Classification of Holomorphic Mappings of Hyperquadrics from C2\mathbb C^2 to C3\mathbb C^3

We give a new proof of Faran's and Lebl's results by means of a new CR-geometric approach and classify all holomorphic mappings from the sphere in $\mathbb C^2$ to Levi-nondegenerate hyperquadrics in $\mathbb C^3$. We use the tools developed by Lamel, which allow us to isolate and study the most interesting class of holomorphic mappings. This family of so-called nondegenerate and transversal maps we denote by $\mathcal F$. For $\mathcal F$ we introduce a subclass $\mathcal N$ of maps which are normalized with respect to the group $\mathcal G$ of automorphisms fixing a given point. With the techniques introduced by Baouendi--Ebenfelt--Rothschild and Lamel we classify all maps in $\mathcal N$. This intermediate result is crucial to obtain a complete classification of $\mathcal F$ by considering the transitive part of the automorphism group of the hyperquadrics.Comment: 35 page

What Do Participation Fluctuations Tell Us About Labor Supply Elasticities?

In this paper we use information on the cyclical variation of labor market participation to learn about the aggregate labor supply elasticity. For this purpose, we extend the standard labor market matching model to allow for endogenous participation. A model that is calibrated to replicate the variability of unemployment and participation, and the negative correlation of unemployment and GDP, implies an aggregate labor supply elasticity along the extensive margin of around 0.3 for men and 0.5 for women. This is in line with recent micro-econometric estimates.matching models, labor market participation, labor supply elasticity