Growth and labor supply in the presence of habit formation in consumption

This paper examines a model with habit formation in consumption. The model leads to higher equilibrium values in consumption, output, capital accumulation and labor supply than the neoclassical growth model with elastic labor supply. Comparative static analysis shows that an increase in the importance of consumption in the recent past in habit formation is associated with a decrease in growth and labor supply. On the other hand, an increase of the importance of habit stock relatively to present consumption, is found to stimulate growth and labor supply.Consumption behavior

PSI-20 fluctuation : correlation of the portuguese stock market with major global capital markets

In this paper, we will analyze the increase of correlations in the market during periods of crisis, due to its paramount importance to the management and optimization of the portfolio, and especially for risk diversification in portfolio management. An evaluation of the level of correlation between the stock markets is important for several reasons. First, it enables to evaluate changes in the patterns of correlation, and thus to make the proper adjustments in portfolios’ investment. Second, policy makers are also interested in these correlations because of its implications for the stability of the financial system. The correlation coefficients are biased measures of dependence when markets become more volatile. This paper explores the correlation of the Portuguese capital markets with the Asian, American, European and Latin American Spanish stock markets. To this end, we used the PSI-20 index, Nikkei 225, NASDAQ, S&P 500, Euronext 100 and Ibex-35. Our analysis results show that the correlation does exist as a phenomenon during financial crises (Bear Market), reducing the benefits of portfolio diversification when most needed. Moreover, we believe that correlations have increased between the markets in recent years.N/

Small departures from rationality magnify fluctuations

This note shows that introducing into the economy a few number of agents who do not support sunspots theories magnifies endogenous business cycles fluctuations when the current state of the economic system is sensitive enough to traders' forecasts, or equivalently, in presence of indeterminacy.

Most Cited Articles Published in Brazilian Journals of Economics: Google Scholar Rankings

This paper examines the rankings of the most cited papers published in Brazilian journals of economics since 1990, according to Google Scholar [GS]. Quality research published in Brazil, as measured by academic impact, is mainly done by authors affiliated with international institutions. Half of the articles are co-authored, 7% are authored by graduate students, and women appear to be underrepresented. There is little overlap between authors publishing in domestic journals and authors publishing in international journals. The areas of research more frequently cited by GS and domestic journals are macroeconomics, labor economics, and industrial organization. The most cited articles in international journals are of econometrics, game theory, and development economics. Revista de Economia Política is the top Brazilian journal for the general public, and Revista de Econometria is the top Brazilian journal for academia. GS citations are not a good indicator of journal citationsRankings of Articles, Economists and Departments, Role of Economists.

Illegal Immigration and Migrant Networks: Is There an Optimal Immigration Quota Policy?

High-skill immigrants form networks that facilitate subsequent low-skill immigration. To minimize the effects of low-skill immigration on unemployment, a strict lean-against-the-wind strategy or a flexible lean-against-the-wind strategy that is supported by, and takes into account the effect of, border control, are considered. None of these policies is necessarily better than the other as regards leniency toward low-skill immigration as well as the number of illegal immigrants. High-skill immigration increases illegal immigration when the effect of migrant networks on the supply of low-skill immigrants is greater than the job-creation effect of these networks.Migrant networks, immigration dynamics, low-skill immigration, illegal immigration, unemployment, lean-against-the-wind policy rules

The Tenure Game: Building Up Academic Habits

Why do some academics continue to be productive after receiving tenure? This paper answers this question by using a Stackelberg differential game between departments and scholars. We show that departments can set tenure rules and standards as incentives for scholars to accumulate academic habits. As a result, academic habits have a lasting positive impact in scholar’s productivity, leading to higher scholar’s productivity rate of growth and higher productivity level.Role of economists; sociology of economics.

Conflict, Political Structure and Economic Growth in Dual-Population Lands

The optimal consumption growth rate for a group in a strictly political federation in a dual-population land is lower than that under partition if the group is wealthier and has a lower population growth rate than its counterpart. Even in such circumstances the group may economically benefit from joining a federation that facilitates technological transfer as long as the group’s initial technology is inferior to the hybrid. The group’s optimal consumption growth rate during a civil war is larger than those under partition and a strictly political federation if its rival’s warfare is mainly aimed at inflicting casualties.conflict, political structure, economic growth

A Lean-Against-the-Wind Rule for Controlling Low-Skill and Illegal Immigration

This paper develops a lean-against-the-wind rule for setting low-skill immigration quota. The construction of this rule takes into account the factors governing the supply of and demand for low-skill immigrants, illegal immigration, border enforcement and the host-country's level of unemployment.Economics, low-skill immigration, immigration quota, illegal immigration, unemployment, lean-against-the-wind policy rules