Creator: Kahn, Charles M. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.) Number: 266 Abstract:
In this article we use the techniques developed in examining optimal contracting with imperfect information to build a simple equilibrium model of a labor market with imperfect information. We then use the model to examine the effects that imperfect information imposes on labor markets, particularly when compared with full information and noncontractual base lines. We demonstrate that quits increase in periods of high output, without postulating exogenous price rigidity.
Keyword: Spot markets, Information, Job change, Quitter, Job search, and Employment Subject (JEL): J24 - Demand and supply of labor - Human capital ; Skills ; Occupational choice ; Labor productivity and D80 - Information, knowledge, and uncertainty - General
Creator: Sargent, Thomas J. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.) Number: 32 Keyword: Choices, Behavior, and Uncertainty Subject (JEL): D80 - Information, knowledge, and uncertainty - General
Creator: Townsend, Robert M., 1948- Series: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.) Number: 77 Abstract:
This thesis consists of a series of essays on the theory of exchange under uncertainty. The first essay examines the welfare implications of futures markets in the context of complete markets for contingent claims. It is shown that in a C-good, S-state world the equilibrium allocations resulting from the operation of pre-state noncontingent futures markets and post-state spot markets may be Pareto optimal. This proposition turns on the fact that a futures contract can be interpreted as a security whose state-specific return is the post-state spot price. If the matrix of spot prices has rank S, then, with futures and spot markets, agents can achieve the same allocations over states as with complete markets for contingent claims.
Keyword: Markets and Uncertainty Subject (JEL): G10 - General financial markets - General, D80 - Information, knowledge, and uncertainty - General, and Y40 - Dissertations (unclassified)
Creator: Miller, Preston J. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.) Number: 173 Description:
This paper reviews selected studies in the theory of macroeconomic stabilization policy and summarizes their key findings.
Keyword: Stabilization theory, Macroeconomic stabilzation policy, and Uncertainty Subject (JEL): D80 - Information, knowledge, and uncertainty - General and E63 - Macroeconomic policy, macroeconomic aspects of public finance, and general outlook - Comparative or joint analysis of fiscal and monetary policy ; Stabilization
Creator: Platt, Glenn J. Series: Law and economics of federalism Abstract:
This paper develops a model of firm location where communities differ by exogenous endowments of a factor of production. Firms choose to locate based on local subsidies to production. Community and firm optimal strategies are then examined. Through the introduction of information asymmetries about the communities' endowments, equilibrium bidding strategies for communities are found. The results show that auction institutions used by firms may in fact be signaling on the part of communities. These results also indicate that community bids reveal information, and restrictions on this bidding may do more harm than good.
Keyword: Tax breaks, Subsidies, Plant location, Tax competition, and Asymmetric information Subject (JEL): H70 - State and local government ; Intergovernmental relations - General, R30 - Production analysis and firm location - General, and D80 - Information, knowledge, and uncertainty - General