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Industry location and wages: The role of market size and accessibility in trading networks

Barbero, Javier; Behrens, Kristian; Zofio, Jose L. - C.E.P.R. Discussion Papers - 2015

We investigate the geographical distribution of economic activity and wages in a general equilibrium model with many asymmetric regions and costly trade. As shown by extensive simulations on random networks, local market size better explains a region’s industry share, whereas accessibility...

Persistent link: https://www.econbiz.de/10011165639

Competitive equilibrium in Markets for Votes

Casella, Alessandra; Llorente-Saguer, Aniol; Palfrey, … - C.E.P.R. Discussion Papers - 2010

We develop a competitive equilibrium theory of a market for votes. Before voting on a binary issue, individuals may buy and sell their votes with each other. We define the concept of Ex Ante Vote-Trading Equilibrium, identify weak sufficient conditions for existence, and construct one such...

Persistent link: https://www.econbiz.de/10008534095

Vote Trading With and Without Party Leaders

Casella, Alessandra; Palfrey, Thomas R; Turban, Sébastien - C.E.P.R. Discussion Papers - 2012

Two groups of voters of known sizes disagree over a single binary decision to be taken by simple majority. Individuals have different, privately observed intensities of preferences and before voting can buy or sell votes among themselves for money. We study the implication of such trading for...

Persistent link: https://www.econbiz.de/10011084134

Competitive Insurance Markets Under Adverse Selection and Capacity Constraints

Inderst, Roman; Wambach, Achim - C.E.P.R. Discussion Papers - 1999

Ever since the seminal work by Rothschild and Stiglitz (1976) on competitive insurance markets under adverse selection the equilibrium-non-existence problem has been one of the major puzzles in insurance economics. We extend the original analysis by considering firms that face capacity...

Persistent link: https://www.econbiz.de/10005661929

Stable and Sustainable Global Tax Coordination with Leviathan Governments

Eichner, Thomas; Pethig, Rüdiger - CESifo - 2014

Itaya et al. (2014) study the conditions for sustainability and stability of capital tax coordination in a repeated …

Persistent link: https://www.econbiz.de/10010877774

Reaching Market Equilibrium Merely by Bilateral Barters

Flåm, Sjur Didrik - CESifo - 2013

Motivated by emission and resource markets, this paper considers repeated, bilateral barters between owners of commodity bundles, contingent claims, or property rights. Focus is on feasible, voluntary exchanges, driven only by differences in substitution rates. No coordination is ever needed....

Persistent link: https://www.econbiz.de/10010721608

UK Phillips Curves and Monetary Policy

Haldane, Andrew; Quah, Danny - C.E.P.R. Discussion Papers - 1999

This paper documents some stylized facts on evolving UK Phillips curves, and shows how these differ from their US versions. We interpret UK Phillips curve dynamics in a positive theory of monetary policy - how policy-maker attitudes on the Phillips curve have evolved since the 1950s - rather...

Persistent link: https://www.econbiz.de/10005067633

Monopolistic Competition, Efficiency Wages and Perverse Effects of Demand Shock

Malley, Jim; Molana, Hassan - CESifo - 2001

In this paper we construct a stylised general equilibrium macromodel to show that demand led expansions may have unexpected effects when market imperfections lead to changes in labour productivity. We find some empirical support, from a number of European countries, for the main predictions of...

Persistent link: https://www.econbiz.de/10005181466

Convexity, Differential Equations, and Games

Flåm, Sjur Didrik - CESifo - 2002

Theoretical and experimental studies of noncooperative games increasingly recognize Nash equilibrium as a limiting outcome of players‘ repeated interaction. This note, while sharing that view, illustrates and advocates combined use of convex optimization and differential equations, the purpose...

Persistent link: https://www.econbiz.de/10005181528

Robust Learning Stability with Operational Monetary Policy Rules

Evans, George W.; Honkapohja, Seppo - C.E.P.R. Discussion Papers - 2008

We consider "robust stability" of a rational expectations equilibrium, which we define as stability under discounted … exhibit robust stability. We consider a variety of interest-rate rules, including instrument rules, optimal reaction functions … Honkapohja (2003, 2006) deliver robust learning stability. In contrast, many proposed alternatives become unstable under learning …

Persistent link: https://www.econbiz.de/10005498187