This paper explores whether changes in the age distribution have significant effects on financial markets that are rational and forward-looking. It presents a stationary overlapping generations model in which agents save for retirement while working, making a portfolio decision over risky equity...

In this paper we analyze a tax reform package recently proposed in Cavaco Silva (1999). We do so in the context of a dynamic general-equilibrium model of the Portuguese economy and we focus on the efficiency, welfare, and tax revenue effects of this package. Simulation results suggest that the...

MACSIM is a package designed to teach international macroeconomics to post-graduate students. It is based on a multinational model, linking six countries: France, Germany, Great Britain, Italy, Netherlands and Sweden, and a summarized Rest of the World. Each country model follows the same...

An important factor of regional development is innovative process. The innovations include new products, new technologies, new ways of commercial use of goods, conquering of new markets, new sources of raw materials and other qualitative trahsformations which can change current economic...

This paper generalizes Deaton's (1991) approach to saving under borrowing constraints to incorporate portfolio choice. For infinite horizon, impatient consumers, effects of risk aversion, prudence and temperance on portfolios can be different from those obtained in atemporal models. We confirm...

Nash equilibrium is the point of departure of most of the standard literature on public goods. This stresses the sub-optimality of voluntary contributions towards the provision of a public good: in game theoretic terms, with unboundedly rational agents, individual best response is no cooperation...

With SUM, a Surprising (Un)realistic Market, we are dealing with the micro-foundations of a stock market. We avoid any artificially simplified solution about price formation, such as to employ an auctioneer to clear the market; on the contrary, our model produces time series of prices...

The paper extends the literature of the dynamic rational expectations commodity storage model, to the case where speculators (speculative stocks) and processing firms (working stocks) are stockholders.So far the literature has been focused on solving the storage model for each type of...

The present paper analyses the time-consistency of optimal fiscal policies in a model with private capital and endogenous growth achieved via public capital. A benevolent government chooses both public spending and taxation plans in order to maximise the welfare of the representative individual....