We investigate the existence of a principal-agent problem between parents and financially dependent adult children within households on the purchase of a durable (such as a vehicle). We theoretically argue that children will select more expensive durables if parents contribute more towards its...

A classic result of Korte and Hausmann [1978] and Jenkyns [1976] bounds the quality of the greedy solution to the problem of finding a maximum value basis of an independence system (E,ℐ)$$ \left(E,\mathcal{I}\right) $$in terms of the rank‐quotient. We extend this result in two ways. First,...

We present a spatial and time-continuous Ramsey-type equilibrium model for households and firms that interact on a spatial domain to model labor mobility in the presence of commuting costs. After discretization in space and time, we obtain a mixed complementarity problem that represents the...

Multiple crises and challenges in the food sector are driving a rising need for innovative food production methods that could provide a growing urban population with high-quality, sustainable and healthy food while strengthening the resilience of food systems. Controlled-environment agriculture...

Incorporating a progressive income tax into an economic decision problem raises the question whether this tax does not create arbitrage opportunities. We investigate this problem in a riskless (multi-period) economy. With a convex tax function we identify a particular kind of arbitrage (called...