In this paper we analyze the welfare properties of the set of Drèze equilibria for economies with incomplete markets and firms. The well known fact that a Drèze equilibrium need not be constrained Pareto optimal is often attributed to a lack of coordination between firms. We show that there...

Most workers are only partially insured against unemployment. One reason is that high unemployment compensation creates a free rider problem when monitoring of job search behavior is limited; people who do not seek employment (non-workers) may nevertheless collect unemployment compensation. We...

This paper develops equilibrium correction models for money demand of European-wide monetary aggregates based on a multivariate cointegration analysis. It will be shown that whether or not the UK is a member of the monetary union does not affect the empirical stability of area-wide money demand...

In this paper a cointegrated system represented as a simultaneous Vector Equilibrium Correction Model for money, prices, output and interest rates in Germany is estimated. The model gives insight in the process of transmission mechanisms of the Bundesbank's monetary policy. The empirical results...

A considerable literature seems to argue the use of person trade-offs to estimate the quality-adjustment factor in Quality-Adjusted Life Years (QALY) models. A similar practise is followed by the WHO to estimate the disability weights used in calculation of Disability-Adjusted Life Years (DALY)...

A solution concept for cooperative games, the extended core, is introduced. This concept is always nonempty yet coincides with the core whenever it is nonempty. Moreover, a non-cooperative framework can generate the extended core. Every transferable utility game is associated with a two-player...

Measures of health status, such as e.g. the QALY (Quality Adjusted Life Years) measure, have been proposed as a tool in the economic assessment of new medical technologies, and its possible foundations in individual utility theory have been discussed in the literature. However, the problems of...

This paper considers the market for digital music. We claim that the combination of the MP3 format and peer-to-peer networks has made music non-excludable and this feature is essential for the understanding of the economics of the music market. We study optimal business models for selling...

The present paper concerns the microeconomic basis for the macroeconomic demand constraint in the form of the Keynesian demand price constraint: taking Say into account denoted by the extended Keynesian demand price constraint. Price flexibility at a scale sufficient for the working of the...

We apply a Bernheim-Whinston (1986) type mechanism to a situation where a single buyer with uncertain demand wishes to buy from a small number of suppliers. We let suppliers bid a payment contingent on own quantity supplied, and another payment contingent on the realization of total demand. We...