This paper defines decreasing absolute risk aversion in purely behavioral terms without any assumption of differentiability and shows that a strictly increasing and risk averse utility function with decreasing absolute risk aversion is necessarily differentiable with an absolutely continuous...

This paper examines Vietnam’s experience with bilateral trade agreements and compares subsequent outcomes with predictions from existing computable general equilibrium (CGE) models. Those model based assessments have greatly underestimated the impact of past agreements. Tariff reform is not...

Money provides liquidity services through a cash-in-advance constraint. The exchange of commodities and assets extends over an infinite horizon under uncertainty and a sequentially complete asset market. Monetary policy sets the path of rates of interest and accommodates the demand for balances....

The paper analyzes the long century of deregulation of European grain markets. Eighteen century reformers won the intellectual battle as to the merits of laissez-faire markets for grain but failed to convince the angry crowds which were alerted by temporary increases in prices. Not until falling...

As a direct result of famine, in the 1840s Ireland lost one-fifth of its population through mortality and emigration. The loss makes the Irish famine, relatively speaking, one of the biggest on record. This paper examines its differential economic impact on groups such as landowners, farmers,...

In Feldstein (1976) the effects of the unemployment insurance (UI) system on employment and unemployment are discussed. Feldstein's model is a pure micro model of a single firm, and the firm size is exogeneously given. In this paper the effects of the UI system is discussed in a dynamic micro...

The paper investigates optimal taxation in a model where groth is the combined effect of public R&D and private human capital accumulation. A tax smoothing formula is called for. This leads to a long-run debt-income ratio related to the initial configuration of the stocks of technical knowledge,...

We formulate a general theory of decision making based on a lattice of observable events, and we exhibit a large class of representations called the general model. Some of the representations are equivalent to the so called standard model in which observable events are modelled by an algebra of...

The literature on the characterization of aggregate excess and market demand has generated three types of results: global, local, or 'at a point'. In this note, we study the relationship between the last two approaches. We prove that within the class of functions satisfying standard conditions...

We develop a method of assigning unique prices to derivative securities, including options, in the continuous-time finance models developed in Raimondo [45] and Anderson and Raimondo [6]. In contrast with the martingale method of valuing options, which cannot distinguish among infinitely many...