In the empirical analysis of financial time series, multivariate GARCH models have been used in various forms. In most cases it is not well understood how the use of a restricted model has to be paid with loss of valuable information. We investigate the structural implications of two alternative...

This paper studies the incidence of tax-transfer policy in a growth model wherein individuals differ according to their level of intergenerational altruism and have an endogenous labor supply. The main results is that public debt is neutral at the macro level but redistributes resources from...

We consider social insurance schemes with a two-part benefit formula: a flat (constant) term and a variable term which is proportional to individuals' contributions. The factor of proportionality defines the type of social insurance. We adopt a two-stage political economy approach. At the first,...

This paper defines a decomposition of technical efficiency for a series of nonparametric deterministic reference technologies related to the Free Disposal Hull. More specificaally, introducing several returns to scale assumptions into this non-convex production model allows one to distinguish...

This paper presents an overlapping generations model of environmental externalities with a depollution technology. We show that if an agent is sufficiently risk averse, voluntary contribution is a decreasing function of average efficiency of depollution technology. If on the contrary, the...

We consider the following stage game: a domestic government chooses an import quota, the a domestic and a foreign firm choose their quality level before engaging a price competition. We first show that the indirect effect of the quota on the sales of the domestic producer are different depending...

The asset market is incomplete. Fix-price equilibria exist. Price regulation Pareto improves on a competitive allocation. Prices in competitive markets may fail to attain equilibrium. The theory of general competitive equilibrium does not account for the adjustment of prices; empirical evidence...

We first analyse the general problem of admissible conditioning and next consider the evaluation of the loss of information when a non-admissible conditioning is used as an approximation of the exact posterior distribution. Considering the case of Fisher test, we evaluate from a Bayesian point...

In this paper we prove that for generic (non cooperative) voting games under plurality rule an equilibrium that induces a mixed distribution over the outcomes (i.e. with two or more candidates elected with positive probability) is isolated. From that we deduce also that the set of equilibrium...

Profit maximization is not a well defined objective when markets are incomplete. Several criteria of investment choice have therefore been put forward in the literature, some of which crucially hinge upon aggregation of shareholders' preferences, as is the case with the criteria proposed by...