In this paper, the issue of strategic behavior in the presence of environmental regulations and international trade is investigated. In a two-country, one-good, two-producer model as in Ulph (1996), we analyze the Nash equilibrium of the game where governments may behave strategically in...

Money managers are rewarded for increasing the value of assets under management, and predominantly so in the mutual fund industry. This gives the manager an implicit incentive to exploit the well-documented positive fund-flows to relative-performance relationship by manipulating her risk...

Does the Pareto criterion discriminate among policy choices when the policymaker does not know the correct model of the economy? If the policymaker can specify ex ante preferences for each agent, there will typically be some policy change that improves the welfare of each agent relative to a...

This paper examines the welfare of consumers in an incomplete markets economy with extrinsic uncertainty. It is shown that the utility of one consumer may be minimized at the Walrasian allocation relative to all other equilibrium allocations for a given security structure. Thus, this consumer...

When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are an integral part of financial markets' organization. We assess the degree of risk sharing that can be achieved through financial markets when enforcement is based on the threat...

In cross-country/cross-region multilateral consumer price level comparisons, differences in the mix of food items consumed in individual countries pose a major problem. Comparison of the level of prices of food items in two countries will be difficult, if the sets of food items consumed in the...

The health status of individuals is of great importance not only because of the direct utility health can provide but because of productivity losses and large indirect costs, caused by ill-health, which places demands on already stretched health systems and family support networks. This is...

This paper sets out a theoretical framework for models of the household production and labour supply decisions of families, and estimates empirical specifications on time use survey data containing information on labour supply, domestic work and pure leisure. The models are then compared with...

This paper analyzes a unique dataset, which contains results of a large-scale experiment in the credit card market. Two strange phenomena that suggest time inconsistency in consumer behavior are observed: First, consumers prefer an introductory offer which has a lower interest rate with a...