Department of Economics

European University Institute

Villa San Paolo;

Via della Piazzuola, 43

50133 Florence, Italy

Tel: +39 055 4685 909

Fax: +39 055 4685 902














Árpád Ábrahám

Professor of Economics




Working Papers


Efficient Risk Sharing with Limited Commitment and Storage, (with Sarolta Laczó), (revision prepared for the Review of Economic Studies)


The Effect of Moral Hazard on Wage Inequality with On-the-Job Search and Employer Competition, (with Susanne Forstner and Fernando Alvarez-Parra)


Optimal Income Taxation with Asset Accumulation, (with Sebastian Koehne and Nicola Pavoni) (under submission).


Tax Reform with Endogenous Borrowing Limits and Incomplete Asset Markets, 2009, (with Eva Carceles-Poveda).


Competitive Equilibria with Production and Limited Commitment, 2009, (with Eva Carceles-Poveda).


The Dynamics of Plant-Level Productivity in the U.S., (joint with Kirk White) (revise and resubmit at the Review of Economic Dynamics) new version is coming soon.


Work in Progress


On the optimal design of a Financial Stability Fund, (joint with Eva Carceles-Poveda, Yan Liu and Ramon Marimon). EEA Slides


Labor Suply, Endogenous Wage Dynamics and Tax Policy (joint with Jay Hong and Ricardo Santos). SED Slides


Tax Progressivity, Performance Pay, and Search Frictions, (joint with Susanne Forstner). SED Slides


Optimal Tax Policy and Sorting in and out from the Informal Sector (joint with Szabolcs Dobó)


Optimal Unemployment Insurance, Layoff-Risk and Hidden Wealth: A Case for Unemployment Accounts System (with Nicola Pavoni).





On the First Order Approach in Principal-Agent Models with Hidden Borrowing and Lending., Journal of Economic Theory, 2011, forthcoming, (with Nicola Pavoni and Sebastiam Koehne).


Endogenous Trading Constraints in Incomplete Asset Markets., Journal of Economic Theory, 2010, 145: 974-1004 (with Eva Carceles-Poveda).


Efficient Allocations with Moral Hazard and Hidden Borrrowing and Lending: A recursive Formulation., Review of Economic Dynamics, 2008, 11: 781-803,(with Nicola Pavoni).


Comment on Altruism, Incomplete Markets, and Tax Fuster, Imrohoroglu and Imrohoroglu., Journal of Monetary Economics, 2008, 55(1): 91:97.


Earnings Inequality and Skill-biased Technological change with Endogenous Choice of Education., Journal of the European Economic Association, 2008, 6(2-3):695-704.


Endogenous Incomplete Markets, Enforcement Constraints and Intermediation, Theoretical Economics, 2006, pp. 439-459. (with Eva Carceles-Poveda).


The Efficient Allocation of Consumption under Moral Hazard and Hidden Access to the Credit Market., Journal of the European Economic Association, April-May 3(2-3): 370-381. (Nicola Pavoni)


Unemployment Differentials in Hungary:The Role of Race and Human Capital., in Halpern and Wyplosz (eds.): Hungary: Towards a Market Economy, 1998, Cambridge University Press (with Gábor Kertesi) .


Income Structure and Distribution of the Tax Burden., Acta Oeconomica, pp. 271-295 (with István János Tóth).



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