Daniel Tsiddon

Department of Economics
Tel-Aviv University
Tel-Aviv 69978 ISRAEL
Tel: NA


NBER Working Papers and Publications

May 2004Earnings Inequality and the Business Cycle
with Gadi Barlevy: w10469
Economists have long viewed recessions as contributing to increasing inequality. However, this conclusion is largely based on data from a period in which inequality was increasing over time. This paper examines the connection between long-run trends and cyclical variation in earnings inequality. We develop a model in which cyclical and trend inequality are related, and find that in our model, recessions tend to amplify long-run trends, i.e. they involve more rapidly increasing inequality more when long-run inequality is increasing, and more rapidly decreasing inequality when long-run inequality is decreasing. In support of this prediction, we present evidence that during the first half of the 20th Century when earnings inequality was generally declining, earnings disparities indeed appeare...

Published: Barlevy, Gadi and Daniel Tsiddon. "Earnings Inequality And The Business Cycle," European Economic Review, 2006, v50(1,Jan), 55-89. citation courtesy of

June 1994Staggering and Synchronization in Price-Setting: Evidence from Multipro-duct Firms
with Saul Lach: w4759
Most of the theoretical literature on price-setting behavior deals with the special case in which only a single price is changed. At the retail-store level, at least, where dozens of products are sold by a single price-setter, price-setting policies are not formulated for individual products. This feature of economic behavior raises a host of questions whose answers carry interesting implications. Are price setters staggered in the timing of price changes? Are price changes of different products synchronized within the store? If so, is this a result of aggregate shocks or of the presence of a store- specific component in the cost of adjusting prices? Can observed small changes in prices be rationalized by a menu cost model? We exploit the multiproduct dimension of the dataset on pric...

Published: American Economic Review, 1996, Vol.86, No.5, pp.1175-1196. citation courtesy of

October 1991Leapfrogging: A Theory of Cycles in National Technological Leadership
with Elise Brezis, Paul Krugman: w3886
Much recent work has suggested that endogenous technological change tends to reinforce the position of the leading nations. Yet from time to time this leadership role shifts. We suggest a mechanism that explains this pattern of -leapfrogging- as a response to occasional major changes in technology. When such a change occurs, leading nations may have no incentive to adopt the new ideas; given their extensive experience with older technologies, the new ideas do not initially seem to be an improvement. Lagging nations, however, have less experience; the new techniques offer them an opportunity to use their lower wages, to break into the market. If the new techniques eventually prove to be more productive than the old, there is a reversal of leadership.

Published: American Economic Review, Vol. 83 (1993).

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