This paper studies a discrete-time utility maximization problem of an infinitely-lived quasi-geometric consumer whose labor income is subject to uninsurable idiosyncratic productivity shocks. We restrict attention to a first-order Markov recursive solution. We show that under the assumption of...

This paper studies the business cycle dynamics of the income and wealth distributions in the context of the neoclassical growth model where agents are heterogeneous in initial wealth and non-acquired skills. Our economy admits a representative consumer which enables us to characterize the...

We construct a general-equilibrium version of Krusell, Ohanian, Ríos-Rulland Violante’s (2000) model with capital-skill complementarity. To account forgrowth patterns observed in the data, we assume several sources of growthsimultaneously, specifically, exogenous growth of skilled and...

In this paper we address the problem of looking for resource allocation mechanisms which would be accepted as equitable from Sen's point of view, in a framework of economic environments. We simplify the idea of equalizing capabilities by means of the equalization of a capability index. Then, we...

In thib paper we provide Lagrangean conditions in a problem generalenough to encompass both the classical quasiconcave optimization problemand the maximization of binary relations.The formal results are applied to consumer theory, providinganalytical characterizations of the solution to the...

This paper examines the stochastic volatility model suggested by Heston (1993). We employ a time-series approach to estimate the model and we discuss the potential effects of time-varying skewness and kurtosis on the performance of the model. In particular, it is found that the model tends to...

In this paper a new numerical representation of preferences (by means of set-valued real functions) is proposed. Our representation extends the usual utility function (in case preferences are preorder-type) as well as the pairwise representation (in case preferences are interval-order type)....

A diagonal image may be defined as a point in the image of agiven mapping, whose components are all equal. This paper investigates sufficient conditions for a set-valued mapping to have quasi-diagonal images(in an extended sense). More specifically, we shall show that anupper-hemicontinuous...

This paper studies how the EU Eastern enlargement can affect the economies of the old and the new EU members and the non-acceded countries in the context of a multi-country neoclassical growth model where Foreign Direct Investment (FDI) is subject to border costs. We assume that in the moment of...

This paper proposes a GARCH-type model allowing for time-varying volatility, skewness and kurtosis. The model is estimated assuming a Gram-Charlier series expansion of the normal density function for the error term, which is easier to estimate than the non-central t distribution proposed by...