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Discrete devaluations and multiple equilibria in a first generation model of currency crises

Broner, Fernando - Department of Economics and Business, Universitat … - 2003

The first generation models of currency crises have often been criticized because they predict that, in the absence of very large triggering shocks, currency attacks should be predictable and lead to small devaluations. This paper shows that these features of first generation models are not...

Persistent link: https://www.econbiz.de/10005827464

Heterogeneity, selection and labor market disparities

Bonfiglioli, Alessandra; Gancia, Gino - Department of Economics and Business, Universitat … - 2013

We study the incentives to improve ability in a model where heterogeneous firms and workers interact in a labor market characterized by matching frictions and costly screening. When effort in improving ability raises both the mean and the variance of the resulting ability distribution, multiple...

Persistent link: https://www.econbiz.de/10011250933

Constant interest rate projections without the curse of indeterminacy

Galí, Jordi - Department of Economics and Business, Universitat … - 2007

Constant interest rate (CIR) projections are often criticized on the grounds that they are inconsistent with the existence of a unique equilibrium in a variety of forward-looking models. This note shows how to construct CIR projections that are not subject to that criticism, using a standard New...

Persistent link: https://www.econbiz.de/10005772117

A simple model of multiple equilibria based on risk

Costain, James S. - Department of Economics and Business, Universitat … - 1998

This paper shows how risk may aggravate fluctuations in economies with imperfect insurance and multiple assets. A two period job matching model is studied, in which risk averse agents act both as workers and as entrepreneurs. They choose between two types of investment: one type is riskless,...

Persistent link: https://www.econbiz.de/10005772131

Contracting externalities and multiple equilibria in sectors: Theory and evidence

Bover, Neus; Lucio, Juan J. de; Rodríguez, Diego - Department of Economics and Business, Universitat … - 1998

We consider an economy where the production technology has constant returns to scale but where in the descentralized equilibrium there are aggregate increasing returns to scale. The result follows from a positive contracting externality among firms. If a firms is surrounded by more firms,...

Persistent link: https://www.econbiz.de/10005772273

Increasing political returns and rural-urban migrations

Sánchez, Gabriel - Department of Economics and Business, Universitat … - 1998

This paper analyzes the different equilibria in rural-urban migrations and political redistribution that result from the interaction between increasing political returns, the distribution of land, and credit market imperfections. Governments that put a special weight on the welfare of urban...

Persistent link: https://www.econbiz.de/10005772300

The survival of the welfare state

Hassler, John; Mora, José V. Rodríguez; Storesletten, … - Department of Economics and Business, Universitat … - 2001

This paper provides an analytical characterization of Markov perfect equilibria in a politico-economic model with repeated voting, where agents vote over distortionary income redistribution. The key feature of the theory is that the future constituency of redistributive policies depends...

Persistent link: https://www.econbiz.de/10005772313

On p-beauty contest integer games

López, Rafael - Department of Economics and Business, Universitat … - 2001

In this paper we provide a full characterization of the pure-strategy Nash Equilibria for the p-Beauty Contest Game when we restrict player’s choices to integer numbers. Opposed to the case of real number choices, equilibrium uniqueness may be lost depending on the value of p and the number of...

Persistent link: https://www.econbiz.de/10005772498

Assessing an intuitive condition for stability under a range of traffic conditions via a generalised Lu-Kumar network

Glazebrook, Kevin D.; Niño-Mora, José - Department of Economics and Business, Universitat … - 1997

We argue the importance both of developing simple sufficient conditions for the stability of general multiclass … between service stations. To achieve the former, we review a peak-rate stability condition and extend its range of application … and for the latter, we introduce a generalisation of the Lu-Kumar network on which the stability condition may be tested …

Persistent link: https://www.econbiz.de/10005772144

A non-quasi-competitive Cournot oligopoly with stability

Villanova, Ramon; Paradís, Jaume; Viader, Pelegrí - Department of Economics and Business, Universitat … - 1999

This paper presents a classical Cournot oligopoly model with some peculiar features: it is non--quasi--competitive as price under N-poly is greater than monopoly price; Cournot equilibrium exists and is unique with each new entry; the successive equilibria after new entries are stable under the...

Persistent link: https://www.econbiz.de/10005772199