General equilibrium models of oligopolistic competition give rise to relative prices only without determining the price level. It is well known that the choice of a numéraire or, more generally, of a normalization rule converting relative prices into absolute prices entails drastic consequences...

We examine the effects of provision of information about seller qualities by a third-party in a directed search model with heterogeneous sellers, asymmetric information, and where prices are determined ex post. The third party separates sellers into quality-differentiated groups and provides...

New Keynesian literature assumes symmetric industrial structure when analysing explanations of money non-neutrality. This paper analyses the impact of modifying this assumption by allowing for a mixed industrial structure; some industries are characterized by monopolistic competition, others by...

A model is set up in which firms borrow their entire working capital to finance the production of a good which is sold in a market with a random demand side. Limited liability may prevent a rational expectations equilibrium to exist at a given rate of interest, or it may be the cause of...

The notions of instrument, intermediate target and final target are defined in the context of the cointegrated VAR. A target variable is said to be controllable if it can be made stationary around a desired target value by using the instrument. This can be expressed as a condition on the...

The present paper concerns the microeconomic basis for the macroeconomic demand constraint in the form of the Keynesian demand price constraint: taking Say into account denoted by the extended Keynesian demand price constraint. Price flexibility at a scale sufficient for the working of the...

An economy with two dates is considered, one state at the first date and a finite number of states at the last date. Shareholders determine production plans by voting — one share, one vote — and at ?-majority stable stock market equilibria, alternative production plans are supported by at...

We apply the dynamic stochastic framework proposed in the recent evolutionary literature to a class of coordination games played simultaneously by the entire population. In these games, payoffs whence best replies are determined by a summary statistic of the population strategy profile. We...

This paper presents a number of policy experiments carried out within a modelling framework, which can be characterized as a merger of the financial programming and the revised minimum standard models, associated with respectively the International Monetary Fund and the World Bank. The baserun...