We present a new way to solve generalized Nash equilibrium problems. We assume the feasible set to be compact. Furthermore all functions are assumed to be polynomials. However we do not impose convexity on either the utility functions or the action sets. The key idea is to use Putinar’s...

This paper studies monetary policy in a New Keynesian model with persistent supply shocks, that is, sustained increases in production costs due to factors such as wars or geopolitical fragmentation. First, we demonstrate that Taylor rules fail to stabilize long-term inflation due to endogenous...

We present a new way to solve generalized Nash equilibrium problems. We assume the feasible set to be compact. Furthermore all functions are assumed to be polynomials. However we do not need any convexity assumptions on either the utility functions or the action sets. The key idea is to use...

In this paper we look at a new way to combine both quantity precommitment and price competition in a dynamic games framework. In each period players choose to invest in production capacities for the next period and also engage in a price competition. Production is free up to capacity and has...

This paper develops a method to compute the equilibrium correspondence for exchangeeconomies with semi-algebraic preferences. Given a class of semi-algebraic exchange economiesparameterized by individual endowments and possibly other exogenous variables such as prefer-ence parameters or asset...

Multiplicity of equilibria is a prevalent problem in many economic models. Oftenequilibria are characterized as solutions to a system of polynomial equations. This pa-per gives an introduction to the application of GrÄobner basis methods for ¯nding allsolutions of a polynomial system. The...

This paper examines portfolios within the framework of a dynamic asset-pricingmodel when investors can trade equity assets as well as bonds of many different matu-rities. We specify the model so that investors have demand for both a risky and a safeincome stream. We characterize the resulting...

We consider an infinite-horizon exchange economy with incomplete markets and collateral constraints. As in the two-period model of Geanakoplos and Zame (1998) households can default on their liabilities at any time without any utility penalties or loss of reputation. Financial securities are...