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Commodity tax structure under uncertainty in a perfectly competitive market

Goerke, Laszlo - 2011

In a partial equilibrium setting without price uncertainty, the balanced-budget substitution of an ad valorem tax on output for a specific (unit) tax can enhance welfare in imperfectly competitive markets and is without impact in a competitive world. This paper demonstrates that a substitution...

Persistent link: https://www.econbiz.de/10010274816

Existence, Uniqueness, and Determinacy of Equilibria in Complete Security Markets with Infinite Dimensional Martingale Generator

Kusuda, Koji - 2002

There is a strong evidence that most of financial variables are better described by a combination of difusion and jump processes. Considering such evidence, researchers have studied security market models with jumps, in particular, in the context of option pricing. In most of their models, jump...

Persistent link: https://www.econbiz.de/10010263366

Perfect Competition in a Bilateral Monopoly

Dubey, Pradeep; Sondermann, Dieter - 2003

We show that if limit orders are required to vary smoothly, then strategic (Nash) equilibria of the double auction mechanism yield competitive (Walras) allocations. It is not necessary to have competitors on any side of any market: smooth trading is a substitute for price wars. Inparticular,...

Persistent link: https://www.econbiz.de/10010263094

Stabilizing the economy: Market design and general equilibrium

Goeree, Jacob K.; Lindsay, Luke - 2012

Review, 1960). Tatonnement theory predicts that prices are globally unstable for this economy, i.e. unless prices start at … the competitive equilibrium they oscillate without converging. Anderson et al. (Journal of Economic Theory, 2004) report … convergence. We replicate their experiments and confirm that tatonnement theory predicts the direction of price changes remarkably …

Persistent link: https://www.econbiz.de/10010316891

Constrained inefficiency in GEI: A geometric argument

Tirelli, Mario - 2005

In this paper we use global analysis to study the welfare properties of general equilibrium economies with incomplete markets (GEI). Our main result is to show that constrained Pareto optimal equilibria are contained in a linear submanifold of the equilibrium set. This result is explicitly...

Persistent link: https://www.econbiz.de/10010318896

Existence of arrow-debreu equilibrium with generalized stochastic differential utility

Beißner, Patrick - 2011

This paper establishes, in the setting of Brownian information, a general equilibrium existence result under a stochastic differential formulation of intertemporal recursive utility. The present class of utility functionals is generated by a backward stochastic differential equation and...

Persistent link: https://www.econbiz.de/10010319971

Trade and the Internationalization of Production

Kleinert, Jörn - 2002

Whereas many empirical studies show that the internationalization of production is driven by falling distance costs, theoretical models of the endogenous emergence of multinational enterprises predict the opposite. This paper argues that this dichotomy can be resolved if the production process...

Persistent link: https://www.econbiz.de/10010260492

Globalization of the World Economy: What Happened in 1985?

Kleinert, Jörn - 2000

This paper brings forward a three-country model to analyze the internationalization process in the age of globalization. It is shown that investment of one company increases not only the incentive to invest in another country for every national competitor but for third country's companies as...

Persistent link: https://www.econbiz.de/10010260623

Testing the Modigliani-Miller theorem directly in the lab: a general equilibrium approach

Mahagaonkar, Prashanth; Qiu, Jianying - 2008

In this paper, we experimentally test the Modigliani-Miller theorem. Applying a general equilibrium approach and not allowing for arbitrage among firms with different capital structure, we are able to address a question fundamental to the valuation of firms: does capital structure affect the...

Persistent link: https://www.econbiz.de/10010263892

Subsidizing extra jobs: promoting employment by taming the unions

Knabe, Andreas; Schöb, Ronnie - 2007

We study the subsidization of extra jobs in a general equilibrium framework. While the previous literature focuses on symmetric marginal employment subsidies where firms are rewarded when they increase employment but punished when they reduce their workforce, we consider an asymmetric scheme...

Persistent link: https://www.econbiz.de/10010264237