There has been an increasing attention to the recent increase in Indonesian inequality. From 2009 to 2011, Gini coefficient increased from 0.37 to 0.41, the highest ever recorded in Indonesian history. During the same period, the world prices of many Indonesian export commodities doubled. As...

This paper revisits one of the classic debates on world capitalist development – the ‘transition to capitalism’ debate framed in Robert Brenner’s classic critique of World Systems and Dependency Theory. It was originally presented to the July 2007 conference of the International...

We embed a stylized traffic model within a general equilibrium model in which labor supply is endogenous and income taxes are distortionary. Within this framework we derive simple rules for performing a cost-benefit analysis that can be applied knowing only the output of the traffic model and a...

Canonical analysis of the classical general equilibrium model demonstrates the existence of an open and dense subset of standard economies that possess fully-revealing rational expectations equilibria. This paper shows that the analogous result is not true in urban economies. An open subset of...

Despite economic theory and empirical literature that have shown that wide availability of business services contributes significantly to productivity gains and growth, economic modelers have been slow to meaningfully incorporate services into their models. This paper employs a 52-sector, small,...

The purpose of our work is to explore contagious financial crises. To this end, we use simplified, thus numerically solvable, versions of our general model [Goodhart, Sunirand and Tsomocos (2003)]. The model incorporates heterogeneous agents, banks and endogenous default, thus allowing various...

We sketch a model that shows how skill-biased technological changemay reverse the classic Balassa-Samuelson effect, leading to a negativerelationship between the productivity in the tradable sector andthe real exchange rate. In a small open economy, export goods areproduced with capital,...

This book provides a rigorous course to the theory of intermediate microeconomics. It includes not only the basic traditional theory, but also a ¡°From the Literature¡± box in each chapter directing students to applications of the theory. The theory is developed axiomatically, with optional...

This paper studies the impact of migration on welfare in a general equilibrium model using a simulation-based approach. Agents make decisions regarding the acquisition of skill and migration on the basis of their idiosyncratic characteristics and different migration regimes. Migration in turn...