When adjustment costs are present, cyclical preference and technology heterogeneities in aproduct’s markets induce cycles in production. We exploit cyclic and dihedral groupinvariances in an industry’s cost technology to describe these patterns. We show whenequilibrium cyclical pricing and...

In a vertically separated industry, where the input suppliers have significantmarket power, not only entry but also the markets (upstream or downstream) withentry possibilities might be a concern to the policy makers. While ‘entry in thedownstream market only’ always increases welfare,...

Economic evaluation has an important role in helping to make decisionsabout the use of scarce resources in an explicit and rational manner, yeteconomic evaluation is not well-developed in many areas of socialwelfare. This paper looks at the reasons for this, focusing on whateconomists could do...

There are N citizens who have to make a social decision about a set policies denotedby x ∈ A, where A denotes the set of feasible policies. Citizen’s preferencesover policy are denoted V i (x, j) ( where i = 1, ...,N) ,and j denotes the identityof the policy maker. This specification allows...

We address a puzzle in welfare economics - the possibility that rational people maybe simultaneously against two apparently conflicting forms of “tyranny”. In fact thetwo types of tyranny can be reconciled but at the possible cost of conflict with otherstandard welfare principles. We examine...

[...]This paper documents the impact of recent changes inimmigration settlement patterns on the skill endowment ofimmigrants in the New York metropolitan area. The empiricalanalysis uses the available U.S. census microdata between 1970and 2000 to examine two related questions that inevitably lie...

The contributory infringement rule assesses liability to a third party that contributes tothe infringement of a patent. Not only are firms that directly infringe liable, those whoindirectly contribute are also liable. We investigate how this rule affects the creation of anetwork of members...

Welfare in a two-product Cournot oligopoly is shown to increase (decrease) with an increase incorrelation between unit costs when the outputs complement (substitute) in demand. A morequalified correlation structure is required for the result to apply in a three-product Cournotoligopoly when...

This paper compares the welfare under two standard alternative exchange rate regimes, fixed andflexible, in a stochastic dynamic general equilibrium two-country setting. Conventional wisdomholds that countries often prefer low exchange-rate variability to stabilize trade. This may explainthe...

Programming models approximate market prices and quantities when regulations constrain firm choices, because market outcomes result when welfare is appropriately defined and includes performance and environmental constraints. This study discusses market operation in quality-constrained sectors,...