While the almost ideal demand system has received increasing attention in empirical studies of consumer demand, the fact that the underlying PIGLOG cost function is not globally regular has often led to violation of negative semidefiniteness in the estimated Slutsky matrix. This paper suggests a...

This paper utilizes the notion of `effective global regularity' and the intuition stemming from Cooper and McLaren (1996)'s General Exponential Form to develop a family of `composite' (product and ratio) direct, inverse and mixed demand systems. Apart from having larger regularity regions, the...

This paper examines the macroeconomic properties of imperfectly competitive economies by modeling the labor market from the perspective of optimal contract theory. The point is to demonstrate that important properties of imperfectly competitive economies (such as underemployment equilibria,...

Using a simple two-period model, this paper attempts to explain uncertain interesting intertemporal properties of product warranties. Specifically, why does coverage generally fall over time and why is the typical warranty's life so much shorter than the expec ted life of the product it covers?...