Strategic sharing of a costly network

We study minimum cost spanning tree problems for a set of users connected to a source. Prim’s algorithm provides a way of finding the minimum cost tree m. This has led to several definitions in the literature, regarding how to distribute the cost. These rules propose different cost allocations, which can be understood as compensations…

Dual sourcing with price discovery

We consider a (standard) reverse auction for dual sourcing and propose to determine both the providers’ shares and the reserve price endogenously, depending on the suppliers’ bids. Our benchmark considers a two-stage game of complete information. After a first round of bidding, the two most competitive suppliers advance to the second stage and compete again…

Beyond the Spanish MIR with consent: (Hidden) cooperation and coordination in matching

Sequential mechanisms to solve matching problems are useful to promote (hidden) cooperation between agents. Taking as a starting point the MIRC mechanism, employed in Spain to match medical students and residency programs in privately owned hospitals, we find that: (1) In the current system, where the number of students that each program might enroll is…

Fair student placement

We revisit the concept of fairness in the Student Placement framework. We declare an allocation as α-equitable if no agent can propose an alternative allocation that nobody else might argue to be inequitable. It turns out that α-equity is compatible with efficiency. Our analysis fills a gap in the literature by giving normative support to…

Convergence in a Dynamic Heckscher–Ohlin Model with Land

Convergence among nations that share the same preferences and technologies is a key result of the closed-economy neoclassical growth framework that has received substantial support in the data. However, Heckscher–Ohlin versions of the two-sector neoclassical growth model predict that nations that differ in their capital–labor ratios may not converge to the same steady state, even…

Neoclassical Growth and the Natural Resource Curse Puzzle

We advance a novel mechanism that helps to explain the puzzling evidence on the natural resource curse. The new channel arises in a standard dynamic Heckscher–Ohlin model composed of small-open economies that take international output prices as given. Within this framework, a more capital-intensive primary sector implies that natural-resource abundant economies grow more slowly along…

The Dynamics of Heterogeneous Political Party Support and Egocentric Economic Evaluations: the Scottish Case

We explore the dynamics of the Scottish National Party (SNP) support using the British Household Panel Survey (BHPS) during 1999-06. We study the relative importance of political sentiments and egocentric economic evaluations by disentangling the effects of state dependence and unobserved heterogeneity by gender. Egocentric economic evaluations constitute an important determinant of SNP support over the entire period, being this…

Impacto de la Ley de Dependencia sobre el gasto autonómico en servicios sociales

Objetivo: En este trabajo se cuestiona si el desarrollo del Sistema de Autonomía y Atención a la Dependencia (SAAD) contribuyó a incrementar el volumen de recursos del sistema público de servicios sociales (efecto desplazamiento) o, por el contrario, si dicho desarrollo se produjo a costa del resto de prestaciones de servicios sociales (efecto sustitución). Método:…

Do institutions of the euro area converge?

In this paper, we analyzes institutional convergence across eurozone economies with data of six institutional variables for the period December 1998- July 2018. The underlying motivation is that institutional factors, apart from affecting economic performance in the short-run, are key determinants of the long run per-capita income levels of the countries. We apply the third-generation…

Do economic recessions cause inequality to rise?

We use a local projection approach to analyze the effect of economic recessions on income inequality in a comprehensive sample of 43 countries from 1960 to 2016. Although we consider both business-cycle and growth-cycle recessions, we fail to find evidence of significant positive impacts of economic downturns on income distribution, once controls are added to…