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Previous research shows that firms shroud high add-on prices in competitive markets with naive consumers leading to inefficiency. We analyze the effects of regulatory intervention via educating naive ...
Given the increasing mobility of capital and labor, many industrialized countries today face strong pressures on their low-wage earners, but in Germany their unemployment rate has been particularly ...
Small businesses make an important contribution to the success of a country’s economy. They are major creators of jobs,1 they innovate,2 and spot and exploit new opportunities.3 Even though many ne...
In order to explain differences in labor market performance, factors determining the capacity of economic actors to adapt to structural shifts or business cycle variations have to be taken into acc...
This paper analyzes transitions into and out of 3 different labor market states, social assistance, unemployment and employment. We estimate a dynamic multinomial logit model, controlling for endogeno...
How will international integration affect welfare policies? This paper considers the possibilities of financing public sector activities (public consumption and social security expenses) by general (w...
In this note we compare the laissez-faire steady-state solution in the Howitt and Aghion (1998) model to the social optimum. The analysis offers several new insights in comparison to the welfare analy...

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