Endogenous Beveridge cycles and the volatility of unemployment

This paper aims to explain the magnitude and cyclical structure of the fluctuations in unemployment and vacancies. Adding demand externalities to an otherwise standard search and matching model reduces the need for exogenous shocks in explaining unemployment fluctuations. Under plausible parameter values, the equilibrium dynamics include a stable limit cycle that resembles the empirically observed counterclockwise cycles around the Beveridge curve. Quantitatively, these endogenous `Beveridge cycles' can explain half of the volatility and almost all persistence of unemployment without any exogenous forces, avoiding the amplification and propagation problems of the standard model. Keywords: Labor market search; Endogenous cycles; Unemployment and vacancies volatility.JEL Classification: E24; E32; J63; J6

The order of buying and selling: Multiple equilibria in the housing market

Moving between owner-occupied houses requires both buying and selling. During the Great Recession, the majority of movers sold their old houses before buying new ones, while in the preceding years the majority first bought new houses. In an equilibrium search model, by choosing the order of buying and selling, households affect the composition of buyer and seller types in the market. Because of their different outside options, different types bargain for different prices. Since prices have an impact on the incentives to enter the market as buyer or seller, a complementarity in the order of buying and selling exists. The resulting multiple equilibria can explain observed differences in trading volumes. Moreover, when all movers first buy and therefore own two houses for some time, the fraction of people paying double housing expenses is lower than when households enter as buyers and sellers simultaneously, due to a smaller time to sale

On the functioning of markets with frictions

Gautier, P.A. [Promotor]Tuinstra, J. [Promotor

Estrogen effects on cartilage and bone changes in models for osteoarthritis

Osteoarthritis (OA) is a frequently occurring musculoskeletal disorder, leading to joint pain and disability. Although all tissues in the joint can be affected, the focus of this thesis is on changes in bone and cartilage. Evidence from literature suggests that estrogen may have an OA-protective effect. Both cartilage and bone are responsive to estrogen, and therefore the OA-protective effect of estrogen may act via both tissues. In this thesis, we aimed to obtain more insight in the protective effects of estrogen, by investigating the role of estrogen in OA at different levels: The current literature concerning the effects of hormone depletion (by ovariectomy) and estrogen treatment on cartilage in animal models was reviewed in a systematic way. Estrogen receptor knockout mice were studied to investigate the role of estrogen signalling in the osteoarthritic process. Ovariectomy in mice was combined with an osteoarthritis trigger (or a saline injection) and changes in cartilage and bone of both proximal tibia and patella were described. The effects of estrogen on cartilage without interference of surrounding tissues were investigated in a culture study of bovine cartilage explants. In conclusion, the results in this thesis support the idea that OA is a multifactorial disease, in which the contribution of estrogen may be small. However the estrogen-induced changes, together with changes caused by other contributors, can result in osteoarthritis

Assessing the use of Geographical Indications for the New England wine region in NSW

Geographical Indications (GIs) have increasingly been used as a marketing tool to create an image of quality and uniqueness, and so capture premium prices. Hedonic pricing studies have shown that indication of geographical origin of production (e.g. country, region, wineries, and location), can affect prices. However, Geographical Indications only work when they are backed up by quality products. The objectives of this study are to assess the potential of a proposed Geographical Indication for the emerging "New England" wine region in promoting local wines and to make recommendations on how that potential, if it exists, can be realised. The assessment is based on an overview of existing systems of Geographical Indications and conditions, both economic and regulatory, which are required for successful geographical indication applications.geographical indication, TRIPS Agreement, wine marketing, hedonic, Agribusiness,

Declining Search Frictions and Type-of-Employment Choice

Do more people choose to become self-employed when search frictions decline? The origin story of the gig economy suggests that improvements in communication technologies increase the self-employment rate, while cross-country evidence suggests the opposite. We reconcile conventional wisdom with the data by introducing frictions in labour and goods markets in a new model of self-employment. Declining labour market frictions decrease self-employment, while declining goods market frictions increase self-employment. We study the impact of the most salient recent reduction in frictions - the roll-out of broadband Internet - in a panel of OECD countries. We find that the effect of declining goods market frictions dominates: the arrival of broadband Internet has halted three quarters of the average downward trend in self-employment rates