If an economy runs a current account (CA) deficit and finances it via a corresponding net inflow of equity capital, the external debt (ED) does not change, i.e.: the CA deficit does not add to ED. This is no paradox. It simply comes from the definition of CA deficit and ED and points to...

Is money going to be replaced by an information processor similar/ to the Walrasian auctioneer? At the heart of the question there is the role of money in transactions. Niehans (1971) stated that money emerges as the good with the lowest transaction cost out of a barter economy and its...

A hot issue in trade negotiations concerns the existence of stateowned firms and state subsidies. Disputes between the US and the EU and the issue of the recognition of the status of a market economy to China are often the epitome of that. In Germany the giant Volkswagen is state controlled, in...

The main aim of the paper is to highlight the relation between flexibility and vertical integration. To this purpose, we go through the selection of the optimal degree of vertical disintegration of a flexible firm which operates in a dynamic uncertain environment. The enterprise we model enjoys...