This paper incorporates limited asset markets participation in dynamic general equilibrium and develops a simple analytical framework for monetary policy analysis. Aggregate dynamics and stability properties of an otherwise standard business cycle model depend nonlinearly on the degree of asset...

In a wide variety of international macro models monetary policy cooperation is optimal, non-cooperative policies are inefficient, but optimal policies can be attained noncooperatively by optimal design of domestic institutions. We show that given endogenous institutional design, inefficiencies...

This paper analyses the effect of limits on fiscal deficits when fiscal policy outcomes depend on automatic stabilizers and when fiscal rules lack perfect credibility. The model developed, which includes interactions between monetary and fiscal policy, provides theoretical support for existing...

There has been a dramatic surge in Islamic participation and values since the 1970s.  We propose a theory of the contemporary Islamic revival based upon two forms of relative deprivation - envy and unfulfilled aspirations.  To analyze these motivations, a behavioral model of religion is...

Game harmony is a generic game property that can be used to predict cooperation in both generic and well-known normal form games. It describes how harmonious (non-conflictual) or disharmonious (conflictual) the interests of players are, as embodied in the payoffs. Pure coordination games are...

It is often claimed that large buyers wield buyer power.  Existing theories of this effect generally assume upstream monopoly.  Yet the evidence is strongest with upstream competition.  We show that upstream competition can yield buyer power for large buyers by generating supplier-level...