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The Allocation of Risk and Economic Slumps. The aim of this project is to construct and analyse models that identify a novel feedback mechanism in which the distribution of investment risk interacts with aggregate employment variations. It will provide a useable framework for economic policy analysis in which the distribution of wealth affects the demand for investment risk while the distribution of production risk affects the supply of labour income risk.
Heterogeneity, Wage Inequality, Unemployment, and Economic Growth. This project would provide the first internally consistent theory of wage inequality, unemployment and economic growth - and the roles that government policy variables play in determining them. It would use and extend frontier developments in theory, and identify the settings of policy variables (unemployment insurance, tax structures, education policies) that maximise social welfare, given that governments must satisfy their bud ....Heterogeneity, Wage Inequality, Unemployment, and Economic Growth. This project would provide the first internally consistent theory of wage inequality, unemployment and economic growth - and the roles that government policy variables play in determining them. It would use and extend frontier developments in theory, and identify the settings of policy variables (unemployment insurance, tax structures, education policies) that maximise social welfare, given that governments must satisfy their budget constraints. It also aims to uncover the relationship between the innate abilities of workers and their education choices - and the consequences for macro economies and public policy.Read moreRead less