In this paper the existence of unemployment is partly explained as being the result of coordination failures. This is achieved by considering a standard general equilibriummodel and splitting the set of commodities in two groups. The first group contains commodities like gold. The prices of...

A stock market is a mechanism by which the ownership and control of firms is determined through the trading of securities. It is on this market that many of the major risks faced by society are shared through the exchange of securities and the production decisions that influence the present and...

This paper uses the framework of an OLG economy with three-period lived agents in which a durable good serves as collateral for loans, to study the effect of an unanticipated income shock when the economy is in a steady state equilibrium. We focus on the consequence of default on loans when the...