A risk averse insurance company which knows the quota of coverage demanded by a client at the status-quo premium but has imperfect information otherwise may choose not to change the premium although an else identical risk neutral company would do so, provided the variance of the company’s...

The effect of the presence of an externality in a general equilibrium scenario is illustrated in a standard Edgeworth box. Assuming utility functions parameterized by the incidence of the externality and taking into account the resource constraints when deriving agents' indifference curves for...

In this paper we use a non-tatonnement dynamic macroeconomic model to study the role of inventories, expectations and wages in the business cycle. Following a restrictive monetary shock, by amplifying spillover effects inventories may imply that the economy converges to a deflationary locally...