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Journal article

Journal of Labor Economics :

Artificial intelligence and jobs: evidence from online vacancies

We study the impact of artificial intelligence (AI) on labor markets using establishment-level data on the near universe of online vacancies in the United States from 2010 onward. There is rapid growth in AI-related vaca...Read more...

CEP discussion paper

Innovation, reallocation and growth

We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between high- and low-type firms, which differ in terms of their innovat...Read more...

CEP discussion paper

Technology, Information and the Decentralization of the Firm

This paper develops a framework to analyze the relationship between the diffusion of new technologies and the decentralization decisions of firms. Centralized control relies on the information of the principal, which we ...Read more...

CentrePiece article

Understanding institutions

Daron Acemoglu delivered the 2004 Lionel Robbins Memorial Lectures at the LSE in February. His theme was that understanding the differences in the formal and informal rules governing economic and political interactions w...Read more...

CEP discussion paper

Minimum Wages and On-the-Job Training

Becker's theory of human capital predicts that minimum wages should reduce training investments for affected workers because they prevent these workers from taking wage cuts necessary to finance training. In contrast, i...Read more...

CEP discussion paper

Corporate Control and Balance of Powers

Most managers enjoy considerable discretion and protection from possible interventions which enables them to look after their own interests. This is often attributed to the dispersion of shareholders and regulations that...Read more...

CEP discussion paper

Search in the Labor Market

This paper shows that search in the labor market has important effects on accumulation decisions. In a labor market characterized by search, employment contracts are naturally incomplete and this creates a wedge between ...Read more...

CEP discussion paper

Labour Market Imperfrections and Thick Market Externalities from Innovation

In the presence of labor market imperfections, workers do not receive their full marginal product and the skill level of the workforce becomes a public good from which all firms benefit. As a result, the adoption of an i...Read more...

CEP discussion paper

A Theory of Economic Fluctuations: Increasing Returns and Temporal Agglomerations

A competitive business cycle model is developed in which internal increasing returns translate a white noise random shock into temporarily agglomerated economic activity. Te qualitative nature of the economy varies over ...Read more...

CEP discussion paper

Asymmetries in the Cyclical Behaviour of UK Markets

Using a simple state-space approach, this paper documents widespread non-linearities in the UK labour market and shows that these non-linearities can be successfully modeled using the notion of cyclical asymmetries. The ...Read more...

CEP discussion paper

Reward Structures and the Allocation of Talent

As relative rewards that different professions receive are a key factor in the allocation of talent, what determines the reward structure of a society is an important question. In order to deal with this question, this p...Read more...

CEP discussion paper

Consumer Confidence and Rational Expectations: Are Agents' Beliefs Consistent with the Theory?

Consumer confidence is found to have predictive content for a wide range of macroeconomic variables including consumption growth, contrary to standard REPIH. We find that on UK data the REPIH is rejected due to the predi...Read more...

CEP discussion paper

Hedging, Multiple Contracting Equilibria& Nominal Contracts

Why would two risk-average agents write a nominal contract? A possible answer is that for an agent who is subject to risks caused by price variability, a nominal contract that offers hedging against these risks may be op...Read more...

CEP discussion paper

Delegation through Managerial Contracts: Is Hiring a Manager a Good Idea?

Why would an entrepreneur hire a manager? It could be because managers are particularly talented people. This paper suggests another reason. We consider a model with asymmetric information between financiers and entrepre...Read more...

CEP discussion paper

Learning about Others Actions and the Investment Accelerator

A General Equilibrium model of investment is constructed in which the pay-offs of firms depend on each other's actions. It is shown that when these actions are unobservable but aggregate output is in the information set...Read more...

CEP discussion paper

An Endogenous Skill Loss Model of Long-Term Unemployment

This paper considers a model in which the unemployed have to incur a cost to maintain their skills. If whether they have done so is not observable, the economy has multiple equilibrium supported by self-fulfilling belief...Read more...

CEP discussion paper

Incomplete Information Bargaining and Business Cycles

This paper presents a one-sided incomplete (asymmetric) information bargaining game in a dynamic general equilibrium framework. The model predicts business cycle movements in the economy with persistence mechanism arisin...Read more...