This paper demonstrates theoretically that a profit tax does not affect the distribution of the firm’s operations between the official and the underground economy. Or, if the firm was initially operating only officially, direct taxation of its business would not be a reason to go underground....

This article maintains that in our second best world, neither corruption nor the informal sector and political instability can be held responsible for the moderate performance of the Ukrainian economy. Corruption in Ukraine appears to act as “grease in the wheels of the economy”, while...

Aristotle’s economics of exchange: (a) Ideally, reciprocal justice in bilateral bargaining to minimize expenditure given utility levels results in Pareto-efficient, envy-free, equitable outcomes. (b) Practically, bargaining under the threat or actual recontracting may act as a surrogate of...

Troika economics has brought Greece to a serious depression at a zero lower bound, with near unlimited supply of labor and near unlimited demand for money. In this paper, it is argued that these circumstances dictate to Greece the implementation individually of a long-term self-financing...

According to this note, the sectoral approach towards a quantity theory of credit is too vague in its predictions. A quantity theory of seigniorage approach is proposed in its place, arriving at the conclusion that the financial system may be held responsible for price and output fluctuations to...

The fact that the use of money enables underground transactions to be kept undetected by the authorities, implies that its variation changes this ability too, thus imposing transaction costs. Variations in money alter in addition the interest rate and hence, the opportunity cost of holding...

This paper derives necessary and sufficient conditions for the existence and occurrence likelihood of competitive equilibria in urban land and housing markets: (i) when there is imperfect information causing costly search trips and (ii) when land and housing are differentiated according to...

Chicago rule is shown to be the unique optimal monetary policy rule from the viewpoint of an intergenerational welfare-maximizing social planner. But, in the absence of commercial banking, it really mandates the elimination of the public sector, because it involves the elimination of central...

This paper is analyzing a dynamic evolutionary game of firm-bank interaction to underline the importance of the interaction regime for encouraging or discouraging soft-budget phenomena and financial disorder. The poor performance of public sector's firms, which led globally to quests for the...

An answer to this question is provided on the basis of a game-theoretic analysis connected methodologically with an intertemporal maximization model since a game played repeatedly over time, brings forward for consideration the present value of a sequence of payoffs. An optimal control problem...