Incomplete asset markets cause competitive equilibria to be constrained suboptimal and provides scope for Pareto improving interventions. In this paper, we examine how intervention in prices in asset or spot commodity markets serve this purpose. We show that, if ?x-price equilibria behave...

This paper develops a bio-economic Malthusian growth model. By integrating recent research on allometric scaling, energy consumption, and ontogenetic growth we provide a model where subsistence consumption is endogenously linked to body mass and fertility. The theory admits a two-dimensional...

Recent studies have tested the preference axioms of completeness and transitivity, and have detected other preference phenomena such as unstability, learning- and tiredness effects, ordering effects and dominance, in stated preference discrete choice experiments. However, it has not been...

The present paper considers rationing problems interpreted as e.g. bankruptcy problems or taxation problems. We demonstrate that among the continuous and order-preserving rationing methods, theproportional method is the only rationing method that preserves inequality in both gains and losses.

This note studies the sustainability of primary budget deficits in a situation where the public sector has also incurred debt to the private sector. It shows that if the rate of pure time preference is small relative to the population growth rate, if public consumption constitutes a modest...

The target zone approach in its several incarnations and refinements into the blueprint addresses the central issues in international monetary reform. However, both theoretical considerations and the analysis of Europe's experience with a tight exchange rate system suggest that its recent...

We take an AK model to the PWT data. In the model both technology (intratemporal) and investment (intertemporal) shocks determine the variation of the growth rate. In earlier work we looked at singular models where we extracted only the technology shock using the policy functions from dynamic...

This paper is a study of Danish aid policy from the early 1960s to 1995. It includes (i) a review of officially stated aims and criteria, (ii) a descriptive analysis of actual behaviour in international comparative perspective, (iii) a review of the theoretical and empirical aid allocation...

An important result of Hurwicz [2] states that a performance correspondence assigning Pareto optimal allocations to exchange equilibria, which is Nash implementable, must be the Walras equilibrium correspondence. In the present paper, this result is extended to economies over time with the...

While many preceding studies on R&D discuss the equilibrium amount and speed of the R&D investment, this paper focuses on its equilibrium direction. Under a broad class of parametric conditions, there is a pure-strategy equilibrium in which multiple firms "cluster", i.e. search for the same...