In static general equilibrium models considering imperfectly competitive goods markets, the effectiveness of fiscal policy to stir output is shown to be greater than in the walrasian case. However, labour is the only input in these models. Here, I develop a simple intertemporal model allowing us...

In a multicommodity life cycle setting with uncertainty and time additive expected utility, this note finds necessary and sufficient conditions on preferences for all but one optimal decision each period to be independent of the future and of uncertainty.

Jekyll and Hyde were in fact two people inside the same person – an obviously dynamically inconsistent person. In the book and in the movie, the dynamic inconsistency was resolved in arather dramatic way. We investigate its resolution in the laboratory.

This paper shows that, by disentangling the degree of monopolistic distortion from the elasticity of substitution between domestic and im-ported goods, we can obtain a negative response of the trade balance to positive monetary shocks, without introducing capital accumula-tion. This result could...

I report a closed form for the Laplace transform of the Ahn Gao (RFS, 1999) discount function and show how this can be used for pricing non-zero coupon bond prices, including hybrid fixed/variable rate instruments. In contrast, numerical techniques have to be used to analyse these prices for the...

This paper develops and estimates a model that integrates two fundamental theories of individual health behavior: the Becker-Murphy model of rational addiction and the Grossman model of health investment. We define an individual's lifetime smoking consumption pattern and investments in health...