In Economics, an efficiency wage is defined as a wage above the equilibrium price paid to obtain a more efficient job from the employee. For this to be the case, there must be some sort of market failure that prevents […]
Slonim et al. (2014) discuss the problems of blood allocation in different countries and suggest a mechanism that can improve it. The present article is a summary of their main ideas.
In the wealthy countries blood is mostly supplied […]
You play rock-paper-scissors against someone. What is the best strategy? Of course, it depends of what your opponent does. If he is someone who always plays “rock”, then you better play “paper”. But if your opponent is not that naïve […]
This month I present the winner article of the Royal Economic Society Prize 2013 to the best non-solicited paper published in the Economic Journal. The authors are Pau Olivella and Marcos Vera-Hernández.
One of the first predictions in the study […]
Economic models of perfect competition and of monopoly only need to include individual behavior that takes the environment as given. In the case of perfect competition, individual firms and consumers only need to know the prevailing market prices to decide […]
The literature of experimental economics has documented that individuals consistently make voluntary payments. Two methodological questions arise from this fact. First, which are the precise drivers of this pro-social behavior and, second, whether these findings can be extended to real […]
The relative wage of high-skilled to low-skilled workers began to increase in US manufacturing industries in the late 1980s, and this phenomenon was also observed in Mexico. At the same time, the US–Mexican trade as a percentage of US GDP […]
It is estimated that at least 860 million people live in slums, a number that has been growing by six million a year from 2000 to 2010 (UN-Habitat 2012) . The study of slums worldwide is a very complex problem. […]
This article summarizes a review of the literature presented in Sacerdote (2011) . I thank Ricardo Mora for bringing it to my attention.
The simplest model of behavioral genetics assumes that child outcomes (Y) are produced by a […]
Competitive markets are efficient under a number of conditions. One is that the consumption or production of the commodity to be traded must not cause externalities. For instance, consider a group of firms polluting the atmosphere or the waters of […]