Abstracts of working papers
#9801 -- Kevin T. Reilly and Tony S. Wirjanto (September 1997)
Does more mean less? The male/female wage gap and the proportion of males to females at the establishment level
#9802 -- Robert A. Amano and Tony S. Wirjanto (November 1997)
Government expenditures and the permanent-income model
Building on recent advances in the theory of the optimal timing of investment under uncertainty, this paper proposes a stylized theoretical model to study an individual's optimal migration strategy. It shows that, as a result of following the optimal strategy, the individual may choose to delay the migration when the condition appears to be favourable, giving rise to so-called waiting phenomenon observed in the data for Germany following the unification. Using the closed-form solution obtained, it also examines how the duration of the waiting phenomenon is affected by a number of economic factors such as uncertainty with respect to income in Western Germany, the individual's attitude toward risk, etc.
#9804 -- Tan Wang and Tony S. Wirjanto (November 1997)
On the existence and duration "wait" migration in a generalized model
9805 -- David Andolfatto and Glenn M. MacDonald (January 1998)
This paper develops and analyzes a macroeconomic model in which aggregate growth and fluctuations arise from the discovery and diffusion of new technologies; there are no exogenous aggregate shocks. The temporal behavior of aggregates is driven by individuals' efforts to innovate and/or make use of others' innovations. Parameters describing preferences, production possibilities and learning technologies are estimated using post-war U.S. data. The model delivers predicted aggregates that grow and fluctuate much like the data. The key features of post-war growth are explained by new technologies that differ in terms of the magnitude of their improvement over existing methods and the difficulty of acquiring them. The model implies a negative trend in technological dispersion, and that the generally lower growth witnessed during the last two decades is the result of new technologies offering comparatively minor or less broadly-applicable improvements. Data on the growing and fluctuating share of engineering PhDs support the model's technological interpretation of the growth facts, and data on patent applications and adult schooling are consistent with the notion that newer technologies are more specific and proprietary.