A Simple Nonlinear Dynamic Model for Unemployment: Explaining the Spanish Case (2008)
Spanish unemployment is characterized by three distinct regimes of low, medium, and high unemployment and by a fast transition between them. This paper presents a simple nonlinear dynamic model that...
Profitability, investment, and efficiency wages (2005)
We examine a model that blends the neoclassical theory of investment with an intertemporal efficiency wage model with turnover costs. Investment decisions in capital are associated with the...
This paper makes two contributions to the literature on terrorism: 1) It presents a model that explains the cyclical characteristics of terrorist attacks, and 2) It improves on the existing...
This paper makes two contributions to the literature on terrorism: 1) It presents a model that explains the cyclical characteristics of terrorist attacks, and 2) It improves on the existing...
This paper makes two contributions to the literature on terrorism: 1) It presents a model that explains the cyclical characteristics of terrorist attacks, and 2) It improves on the existing...
This paper makes two contributions to the literature on terrorism: 1) It presents a model that explains the cyclical characteristics of terrorist attacks, and 2) It improves on the existing...
Analytical papers on money, inflation and growth. (1998)
Thesis (Ph. D.)--University of Kent at Canterbury, 1998.
Leading by Example and International Collective Action
This paper investigates leading by example as a policy prescription for international collective action to provide summation public goods. A country leads by example by committing to a minimal level...
Andre Varella Mollick, Joao Ricardo Faria, Pedro H. Albuquerque
Several empirical studies report the existence of declining terms of trade between commodities and manufactures, supporting the Prebisch-Singer hypothesis. As globalisation leads to greater...
Employment and Fertility Choice: A Differential Game Approach
For OECD countries there is an intriguing variety of combinations between total fertility rate (TFR) and female labor force participation rate (FPR) suggesting the existence of multiple equilibria....
A Lean-Against-the-Wind Rule for Controlling Low-Skill and Illegal Immigration
Levy, Amnon, Faria, Joao Ricardo
This paper develops a lean-against-the-wind rule for setting low-skill immigration quota. The construction of this rule takes into account the factors governing the supply of and demand for low-skill...
Illegal Immigration and Migrant Networks: Is There an Optimal Immigration Quota Policy?
Faria, Joao Ricardo, Levy, Amnon
High-skill immigrants form networks that facilitate subsequent low-skill immigration. To minimize the effects of low-skill immigration on unemployment, a strict lean-against-the-wind strategy or a...
What Happened to the Neanderthals? The Survival Trap.
This paper proposes a model that unifies and integrates four conjectures put forward to explain the extinction of the Neanderthals. The model shows that these hypotheses, considered together or...
Habit formation, work ethics and technological progress
Work ethics affect labour supply. This idea is modelled assuming that work is habit forming. We introduce working habits in a neoclassical growth model and compare its outcomes with a model without...
Growth and Stability in a Model with Pasinettian Saving Behaviour and Neoclassical Technology.
Faria, Joao Ricardo, Teixeira, Joanilio Rodolpho
This paper analyzes a Kaldor-Pasinetti two-class model of growth and distribution in which fiscal activity is explicitly introduced along the lines of L. Pasinetti (1989). Following the approach of...
Why Business Schools Do So Much Research: A Signaling Explanation
Besancenot, Damien, Faria, Joao Ricardo, Vranceanu, Radu
Criticism is mounting on business schools for their excessive focus on research and for neglecting teaching. We show that if students have imperfect information about a school’s overall...
Terrorism against American citizens in Africa: Related to poverty
Barros, Carlos Pestana, Faria, Joao Ricardo, Gil-Alana, Luis A.
Habit Formation, Work Ethics, and Technological Progress
Work ethics affects labor supply. This idea is modeled assuming that work is habit forming. This paper introduces working habits in a neoclassical growth model and compares its outcomes with a model...
Joao Ricardo Faria, Miguel León-Ledesma
In an attempt to measure the impact of cultural heritage on growth, this paper matches the definition of culture as a stock with the cultural heritage list provided by UNESCO, as it is a variable...
Environment, Growth and Fiscal and Monetary Policies
This paper investigates whether monetary and fiscal policies, such as lump-sum taxes and monetization of pubic deficit, have environmental impacts. We address this question extending the neoclassical...
Effort, Productivity and Inflation
Joao Ricardo Faria, Peter J. Sanfey
This paper examines the effect of inflation on effort and productivity in a representative agent model. We allow individual effort to be a continuous choice variable, which affects utility negatively...
The Sephardim Diaspora: A Model of Forced Migration and Confiscation
This paper studies the expulsion of Jews from Spain in 1492. This forced migration process is addressed with a model that blends demographic, religious and macroeconomic features. The optimal...
Supervision and Effort in an Intertemporal Efficiency Wage Model: The Role of the Solow Condition
The Solow condition is examined in an intertemporal model that blends the shirking and the turnover models of efficiency wages with managerial supervision. It is shown that the Solow condition does...
Growth and labor supply in the presence of habit formation in consumption
This paper examines a model with habit formation in consumption. The model leads to higher equilibrium values in consumption, output, capital accumulation and labor supply than the neoclassical...
The Economics of Witchcraft and the Big Eye Effect.
Witchcraft is one of the manifestations of envy. It has disruptive effects on team work. A fold catastrophe is shown to exist between the degree of envy and the productivity of the witch's victim....
Consumer Behaviour, Labour Supply and Diabetes: The Complex Case
This article examines the behaviour of a consumer diagnosed with diabetes. It is shown that the medical treatment of the disease creates incentives that make diabetic's consumption and wieght display...
Is There a General Criterion for Dynamic Efficiency?
This paper analyses an overlapping generations model with absolute bequest motive. It is shown that the widely accepted criterion to verify dynamic efficiency does not apply to this case. In our...
The Research Output of Academic Economists in Brazil
This paper presents productivity rankings of economics departments and economists in Brazil. The results are: 1) At individual level, only 9 out of 497 economists managed to publish at least one...
An Economic Analysis of the Peter and Dilbert Principles
The paper discusses how the Peter and Dilbert Principles can occur and what are the consequences for a profit maximizing firm. A competence frontier is constructed as a linear combination of the...
Integrating Tobin's Q with Goodwin's Nonlinear Accelerator
This paper derives an optimal investment function that combines Tobin's q with Goodwin's nonlinear accelerator. It provides microfoundations to the backward looking behaviour of investment in...
The Game Academics Play: Editors Versus Authors
This paper studies a differential game between authors and editors. Authors maximize the number of publications seeking to increase the impact of their work in the literature. Editors maximize the...
Trade Liberalization, Nature of Mergers and Employment
Joao Ricardo Faria, Halis Murat Yildiz
This paper develops a simple two-country model in which each economy consists of two sectors: a competitive non-tradable sector and an oligopolistic tradable sector. We investigate two related issues...
Unemployment and entrepreneurship: a cyclical relationship?
Joao Ricardo Faria, Juan Carlos Cuestas, Luis Gil-Alana
This paper presents a cyclical model for unemployment and entrepreneurship. The estimated periodicity of the cycles for the US, the UK, Spain and Ireland is between 5 and 10 years, and the orders of...
Entrepreneurship and unemployment: a nonlinear bidirectional causality
Joao Ricardo Faria, Juan Carlos Cuestas, Estefania Mourelle
This paper tests the view that the relation between unemployment and entrepreneurship is dynamic and possibly nonlinear. It performs Granger-causality tests and STAR-EXT estimation to assess the...
China's Exports and the Oil Price
Joao Ricardo Faria, Andre Varella Mollick, Pedro H. Albuquerque, Miguel Leon-Ledesma
The increase in oil prices in recent years has occurred concurrently with a rapid expansion of Chinese exports in the world markets, despite China being an oil importing country. In this paper we...
Why business schools do so much research: A signaling explanation
Besancenot, Damien, Faria, Joao Ricardo, Vranceanu, Radu
Criticism is mounting on business schools for their excessive focus on research and the relative neglect of teaching quality. This paper shows that if students have imperfect information about...
This paper makes two contributions to the literature on terrorism: 1) It presents a model that explains the cyclical characteristics of terrorist attacks, and 2) It improves on the existing...