Gravitational fields with sources, regular black holes, quasiblack holes, and analogue black holes

We discuss recent developments in gravitational fields with sources, regular black holes, quasiblack holes, and analogue black holes, related to the talks presented at the corresponding Parallel Session AT3 of the 13th Marcel Grossmann Meeting.Comment: Report of the Parallel Session AT3 at the Marcel Grossmann Meeting 13, Stockholm 2012, Proceedings of the Conference. 9 page

Sovereign Debt: Default, Market Sanction, and Bailout

This paper explores the case of a sovereign indebted country facing a choice of economic policy today that will determine the country's ability to continue its debt servicing in the future. If the sovereign undertakes an unsound economic policy it will repudiate its debt with certainty; otherwise it will repudiate its debt with some positive probability. In our framework there is no court to enforce contracts. However, we assume the existence of a multilateral financial institution that could bailout the financially troubled sovereign country. Our focus is on the incentives created by the perspective of a bailout, as well as the punishment that the international financial markets could impose on the defaulting country, on today's economic policy. This essay provides a theoretical grounding for the IMF and other multilateral agencies intervention on the international financial markets showing that, unlike the idea that bailouts create both debtor and creditor moral hazard, it is sometimes a result of creditors' overreaction to the prospect of a liquidity crisis. The main result of the essay is that the multilateral will be better off bailing out the country regardless of the economic policy undertaken in order to avoid bigger losses from a generalized financial crisissovereign debt, default, bailout, creadible threat, market sanction

Managers and wage policies

We investigate the effects of individual top managers on wages and wage policies. A large longitudinal administrative dataset from Portugal allows us to match workers,firms and top managers, and follow the movements of the latter across different firms over time. We estimate the role of top manager fixed-effects in determining wages and wage policies, while also accounting for the effect of worker and firm heterogeneity. Our results reveal that top managers have a significant influence on wages, the returns to schooling and tenure, the gender wage gap, and the extent of rent sharing. Further-more, they point to the existence of managerial styles in the setting of wage policies. Finally, we relate worker compensation to observable managerial attributes, and find that returns to schooling tend to be higher in firms led by more educated top executives, while longer-tenured managers appear on average to engage in more rent sharing.Top managers, wage policies, linked worker-firm-manager data.