The Theory of the Second Best implies that any country with less-than-ideal resources can lose from international trade. Recently it has been suggested this means the South (poor countries) are better off suppressing trade with the North, especially trade in natural resource products, since the...

This honors thesis will examine current and theoretical "cap and trade" emissions trading schemes in an attempt to make recommendations on how to improve this regulated commodity market. The various control mechanisms available to regulators will be discussed: including allocation methodology,...

General financial models have become workhorse models in the fields of macroeconomics and finance. These models have been developed and extensively studied by general equilibrium theorists. What makes them so applicable for macroeconomics and finance is the well accepted fact that models with a...

We combine general equilibrium theory and théorie générale of stochastic processes to derive structural results about equilibrium state prices.

This paper focuses on the decomposition of observed increases in UK wage inequality since 1979 into the component factors of competition from low-wage imports and technological change. Building on recent work by Abrego and Whalley, it argues that the length of production run and degree of .xity...

This paper examines the impact of imposing different separability assumptions in the specifications of the standard hierarchical KLEM production function in a computable general equilibrium (CGE) model. The appropriate means of introducing energy to sectoral production functions in CGE models...

We consider a pure exchange economy, where for each good several trading institutions are available, only one of which is market-clearing. The other feasible trading institutions lead to rationing. To learn on which trading institutions to coordinate, traders follow behavioral rules of thumb...

In this thesis it is analyzed if promoting product market competition can help to to fight unemployment in Europe. We have used a general equilibrium model in order to study how reducing mark-ups and increasing productivity in one sector affect aggregate unemployment for an exogenously given...