In this paper, we consider a dynamic spatial market equilibrium problem with inequality market clearance conditions. Both supply and demand market prices are treated as equilibrium factors along with quantities shipped between the markets. The rates of change for each of the factors are...

In this paper, a variational inequality approach for modeling competitive international financial equilibrium in the presence of financial futures is presented. The optimal composition of hedged and nonhedged assets and liabilities for each sector of each country, as well as the prices of all...

A phenomenon widely observed in industries which are in an early stage is that they reduce their costs as a result of accumulating experience, that is, they reduce their costs with their output. This is known in the economic literature as the learning by doing effect, and it was studied for the...

In this study we combine the dynamic programming method with the projection methods for solving stochastic growth models. One of the inconveniences of Judd's projection technique is that finding a good initial guess is not that easy or it is time costly especially when the dimensionality of the...

This paper considers a central bank with a zero inflation target and a fiscal authority with a differing objective. Situations under which the fiscal authority is able to exploit the central bank's commitment to zero inflation are examined. An example using a calibrated model shows that, in...

Standard microeconomics tells us that enforcing competition raises social welfare. Second we know form the theory of natural monopoly regulation that Ramsey-pricing will maximize your welfare function. This article tries to analyze a multiproduct enterprise producing in both, markets with...

Economics is the discipline of using data to revise beliefs about economic issues. In Bayesian econometrics, the revision is conducted in accordance with the laws of probability, conditional on what has been observed. The normative appeal of Bayesian econometrics is the same as that of expected...

In many situations that can be characterized as a prisoner's dilemma (PD) agents are not prisoners forced to play the game with whoever they face but are free to select their game partners. Opening the prison door adds an interesting dimension to the original game: players face two strategic...

Monte Carlo experiments establish that the usual ``t-statistic'' used fortesting for first-order serial correlation with artificial regressions is far from being distributed as a Student's t in small samples. Rather, it is badly biased in both mean and variance and results in grossly misleading...

In simultaneous equation models (SEMs) the assumption that the covariance matrix of the disturbances is non-singular cannot always be made. For example, allocation models and models with precise observations which may imply linear constraints on the parameters, have singular disturbance...