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Endogenous Growth, The Distribution of Wealth, and Optimal Policy Under Incomplete Markets and Idiosyncratic Risk

Clemens, Christiane - 2012

with the Arrow/Romer approach to endogenous growth to analyze the interaction of risk, growth, and inequality, the latter …. Major results include that growth, inequality, and risk are positively related in our model, but we also identify a hump …–shaped relationship between welfare and risk, indicating a tradeoff relationship between risk–pooling and growth in the determination of …

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013105141

Flexible Life Annuities

Direr, Alexis - 2021

Annuity contracts typically deliver a stream of income at a predetermined level in order to insure against the risk of … survival, a predetermined and "one-size-fits-all" annuity plan is optimal. If an expenditure risk is added along with the … longevity risk, a flexible annuity plan is better even though the consumption path cannot be isolated from uninsured expenses …

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013316810

Inequality, Structure of Production and International Trade – The Role of Credit Market Imperfection

Beladi, Hamid - 2017

Credit rationing in the presence of asset inequality affects production and trade pattern in this paper, but not in the conventional way. A Ricardian general equilibrium framework with heterogeneous levels of asset ownership is developed to show that more equal asset distribution may contract...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10012962668

Sustainability of Product Market Collusion Under Credit Market Imperfections

Marjit, Sugata - 2017

We study the implications of credit constraints for the sustainability of product market collusion in a bank-financed oligopoly in which firms face an imperfect credit market. We consider two situations, without and with credit rationing, i.e., with a binding credit limit. When there is credit...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10012963378

Making Sense of Non-Binding Retail-Price Recommendations

Bühler, Stefan - 2010

We model non-binding retail-price recommendations (RPRs) as a communication device facilitating coordination in vertical supply relations. Assuming both repeated vertical trade and asymmetric information about production costs, we show that RPRs may be part of a relational contract,...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013144362

Illiquidity and Under-Valuation of Firms

Gale, Douglas - 2012

We study a competitive model in which market incompleteness implies that debt-financed firms may default in some states of nature and default may lead to the sale of the firms' assets at fire sale prices when markets are illiquid. This incompleteness is the only friction in the model and the...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013116475

Capacity Constraining Labor Market Frictions in a Global Economy

Holzner, Christian - 2011

Convex vacancy creation costs shape firms' responses to trade liberalization. They induce capacity constraints by increasing firms' cost of production, leading a profit maximizing firm not to fully meet the increased foreign demand. Hence, firms will only serve a few export markets. More...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013119834

Newspaper Differentiation and Investments in Journalism : The Role of Tax Policy

Kind, Hans Jarle - 2011

Many countries levy reduced-rate indirect taxes on newspapers, with proclaimed policy goals of stimulating investment in journalism and ensuring low newspaper prices. However, by taking into account the fact that the media industry operates in two-sided markets, we find the paradoxical result...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013120236

Competition and Quality in Regulated Markets with Sluggish Demand

Brekke, Kurt R. - 2010

We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public utilities), using a Hotelling framework, in the presence of sluggish demand. We take a differential-game approach, and derive the open-loop solution (providers choose the optimal...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013148292

Hospital Competition and Quality with Regulated Prices

Brekke, Kurt R. - 2010

We analyse the effect of competition on quality in hospital markets with regulated prices, considering both the effect of (i) introducing competition (monopoly versus competition) and (ii) increasing competition through lower transportation costs (increased substitutability) or a higher number...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013152862