The purpose of this paper is to examine production decisions under output price uncertainty. Using a nonparametric estimation technique to estimate the first four moments of the unknown price distribution and applying duality, we provide a simple empirical framework for the analysis of supply...

This paper examines the interaction between root causes, domestic policy considerations and the use of extremism as a strategic tool in an external conflict. Within a two-country three-stage game, we show that, in general, domestic policies will be used strategically to achieve the desired level...

This paper examines the role of capital structure as an instrument for shifting risk between real and financial markets. The author considers a firm whose contractual agreements involve both consumers and debtholders and shows that if consumers are risk averse, whereas equity and debtholders are...

This paper analyzes how uncertainty influences the formation and design of regional trade agreements (TAs). Two sources of uncertainty — in demand and costs — are considered. Using a multi-stage game we show that, as long as some decisions are made after uncertainty is resolved,...

This paper provides a simple dynamic model that explores the interdependence and dynamic properties of hate, violence and economic well-being. It shows that a time-dependent economic growth process that affects the evolution of hate can yield a long run steady state, but this steady state will...

We raise the possibility that at least some of the free trade areas observed in practice are customs unions in disguise. We distinguish between generalized and standard customs unions. While members of the former can choose different external tariff rates, members of the latter levy a common...

This paper analyzes how uncertainty and the timing of its resolution influence the formation and design of regional trade agreements. Two sources of uncertainty ? in demand and costs ? are considered. We compare the case in which uncertainty is resolved "early" (before tariffs are chosen), with...

This paper provides a new framework for the derivation and estimation of consumption and equity premium functions. Applying duality in a dynamic context, we show that equity premium and consumption functions can be easily obtained from the indirect utility function. Our new framework, therefore,...