Institutions, Bargaining Power and Labor Shares

We use a static framework characterized by both moral hazard and holdup problems. In the model the optimal allocation of bargaining power balances these frictions. We examine the impact of improved monitoring on that optimal allocation and its impact upon effort, investment, profits and rents. The model’s predictions are consistent with the recent evolution of labor shares, wages per efficiency units and the ratio of labor in efficiency units to capital in several OECD countries. The model suggests further that improvement in monitoring may also play a key role in understanding opposition to institutional reforms in the labor market.moral hazard, hold up, bargaining, labor share

Should We Have or Should We Have Not, and Who Should Have Paid?

We analyze an overlapping generations model which explicitly includes a secondary asset market. The economy is affected by a onetime shock which causes some of these assets to become toxic. As a response the government may intervene by buying these assets at market value and removing them from trade. When the shock is not anticipated we find that government intervention cannot improve upon the laissez-faire equilibrium. However, when agents anticipate that a crisis may occur, removing the toxic assets dominates laissez-faire, particularly when the toxic asset holders are financing the intervention scheme. Finally, we show that curbing incentives which drive investors to find high yield opportunities decreases the severity of a crisis once it occurs, but also output.Crisis; Toxic Assets; Intervention

Do Factor Shares Reflect Technology?

This note demonstrates that it is easily possible to compute technological parameters out of national income accounting data in the presence of bargaining in the labor market. Applying the method to US data, we obtain that the output elasticity with respect to capital exceed 0.5.Factor Shares, Nash Bargaining

Incentive Contracts and Total Factor Productivity

This paper focuses on the endogenous determination of effort as a source of productivity growth. The economy is populated by infinitely lived households. Every period, members of each household may choose whether to be self-employed or become employees in a "corporate sector". Labor relations in the corporate sector are characterized by a double-moral hazard problem. To induce effort, the optimal labor contract stipulates for a bonus. Nevertheless, due to double moral hazard, employees extract some rents. As the economy grows, employees' rents increase, thereby raising the marginal benefit of monitoring. The ensuing changes in the optimal labor contract induce higher effort along the growth path. The model creates an endogenous association between growth and total factor productivity, and demonstrates that substantial cross-country productivity differences may be ascribed to differences in incentive structures.Incentive contracts, Total factor productivity, Economic growth

Incentive Contracts and Total Factor Productivity

This paper proposes a transactions cost theory of total factor productivity. In a world with asymmetric information and transactions costs, effort, and thus productivity, must be induced by incentive schemes. Labor contracts trade off the marginal benefits and the marginal costs of effort. The latter include, in addition to the workers? marginal disutility of effort, also organizational costs and rents. As the economy grows, the optimal contracts change endogenously, inducing higher effort and measured productivity. Transactions costs are also affected by societal characteristics that determine the power of incentive contracts. Therefore, differences in these characteristics may explain cross-economy productivity differences. Numerical experiments demonstrate that the model is consistent both with time series and cross-country observations. --incentive contracts,total factor productivity,economic growth

Essential countability of treeable equivalence relations

We establish a dichotomy theorem characterizing the circumstances under which a treeable Borel equivalence relation E is essentially countable. Under additional topological assumptions on the treeing, we in fact show that E is essentially countable if and only if there is no continuous embedding of E1 into E. Our techniques also yield the first classical proof of the analogous result for hypersmooth equivalence relations, and allow us to show that up to continuous Kakutani embeddability, there is a minimum Borel function which is not essentially countable-to-one

Biotransformation of halogenated compounds by lyophilized cells of Rhodococcus erythropolis in a continuous solid-gas biofilter

The irreversible hydrolysis of 1-chlorobutane to 1-butanol and HCl by lyophilized cells of Rhodococcus erythropolis NCIMB 13064, using a solid–gas biofilter, is described as a model reaction. 1-Chlorobutane is hydrolyzed by the haloalkane dehalogenase from R. erythropolis. A critical water thermodynamic activity (aw ) of 0.4 is necessary for the enzyme to become active and optimal dehalogenase activity for the lyophilized cells is obtained for a aw of 0.9. A temperature of reaction of 40 ◦ C represents the best compromise between stability and activity. The activation energy of the reaction was determined and found equal to 59.5 kJ/mol. The absence of internal diffusional limitation of substrates in the biofilter was observed. The apparent Michaelis–Menten constants Km and Vmax for the lyophilized cells of R. erythropolis were 0.011 (1-chlorobutane thermodynamic activity, aClBut ) and 3.22 µmoles/min g of cell, respectively. The activity and stability of lyophilized cells were dependent on the quantity of HCl produced. Since possible modifications of local pH by the HCl product, pH control by the addition of volatile Lewis base (triethylamine) in the gaseous phase was employed. Triethylamine plays the role of a volatile buffer that controls local pH and the ionization state of the dehalogenase and prevents inhibition by Cl− . Finally, cells broken by the action of the lysozyme, were more stable than intact cells and more active. An initial reaction rate equal to 4.5 µmoles/min g of cell was observed

Bioremediation of halogenated compounds: comparison of dehalogenating bacteria and improvement of catalyst stability

Five bacterial strains were compared for halogenated compounds conversion in aqueous media. Depending on the strain, the optimal temperature for dehalogenase activity of resting cells varied from 30 to 45 degrees C, while optimal pH raised from 8.4 to 9.0. The most effective dehalogenase activity for 1 chlorobutane conversion was detected with Rhodococcus erythropolis NCIMB13064 and Escherichia coli BL21 (DE3) (DhaA). The presence of 2-chlorobutane or propanal in the aqueous media could inhibit the 1-chlorobutane transformation

Towards the modeling of mucus draining from human lung: role of airways deformation on air-mucus interaction

Chest physiotherapy is an empirical technique used to help secretions to get out of the lung whenever stagnation occurs. Although commonly used, little is known about the inner mechanisms of chest physiotherapy and controversies about its use are coming out regularly. Thus, a scientific validation of chest physiotherapy is needed to evaluate its effects on secretions. We setup a quasi-static numerical model of chest physiotherapy based on thorax and lung physiology and on their respective biophysics. We modeled the lung with an idealized deformable symmetric bifurcating tree. Bronchi and their inner fluids mechanics are assumed axisymmetric. Static data from the literature is used to build a model for the lung's mechanics. Secretions motion is the consequence of the shear constraints apply by the air flow. The input of the model is the pressure on the chest wall at each time, and the output is the bronchi geometry and air and secretions properties. In the limit of our model, we mimicked manual and mechanical chest physiotherapy techniques. We show that for secretions to move, air flow has to be high enough to overcome secretion resistance to motion. Moreover, the higher the pressure or the quicker it is applied, the higher is the air flow and thus the mobilization of secretions. However, pressures too high are efficient up to a point where airways compressions prevents air flow to increases any further. Generally, the first effects of manipulations is a decrease of the airway tree hydrodynamic resistance, thus improving ventilation even if secretions do not get out of the lungs. Also, some secretions might be pushed deeper into the lungs; this effect is stronger for high pressures and for mechanical chest physiotherapy. Finally, we propose and tested two adimensional numbers that depend on lung properties and that allow to measure the efficiency and comfort of a manipulation