The appeal of the microfoundations project in economics is strongly supported by the considerable force of the discipline's "hard core" (in Lakatos' sense). This is especially the case, if the microfoundations metaphor is seen as a way of giving precedence to microeconomics in unifying economic...

Shortfall risk retirement income analyses offer little insight into how much risk is optimal, and how risk tolerance affects retirement income decisions. This study models retirement income risk in a manner consistent with risk tolerance in portfolio selection in order to estimate optimal asset...

We consider the finite-time optimal portfolio liquidation problem for a von Neumann-Morgenstern investor with constant absolute risk aversion (CARA). As underlying market impact model, we use the continuous-time liquidity model of Almgren and Chriss (2000). We show that the expected utility of...

This textbook supports undergraduate microeconomics students. In Chapter 1, it presents the market as three Laws of Nature: i) that supply function is the result from the decision of the sellers, ii) that demand function is the result from the decisions of buyers; iii) that the market balance...

This paper examines the nature and role of maximization postulates concerning profit and utility in the mainstream price theory formation from a methodological perspective. Mainstream economics retains these postulates, despite much criticism, mainly for two reasons. Firstly, they help establish...

This multi-faceted study address a variety of topics. It first develops a formal model of why interregional wage differentials may not elicit interregional migration. Then it provides empirical support for the model. The study develops a formal model general theory of migration. It demonstrates...

This paper points out that the treatment of utility maximization in current textbooks on microeconomic theory is deficient in at least three respects: breadth of coverage, completeness-cum-coherence of solution methods and mathematical correctness. Improvements are suggested in the form of a...

Judicial discretion has rightly been termed a puzzle. Given the several competing concerns that can influence judges when they sanction offenders and the institutional structures that typically constrain their decisions, the task of uncovering the motivational structures underlying judicial...

We consider the infinite-horizon optimal portfolio liquidation problem for a von Neumann-Morgenstern investor in the liquidity model of Almgren (2003). Using a stochastic control approach, we characterize the value function and the optimal strategy as classical solutions of nonlinear parabolic...

This paper demonstrates how the transformation of the taxi industry is an example of Coase’s Theorem in practice. The Coase Theorem, as postulated by Nobel Laureate Ronald Coase (1991), is one of the simplest yet profound ideas in economics. The recent advent of new mobile app entrants in the...