We study the impact of social capital in both simple theoretical and em- pirical model with the main assumption is the price of physical capital is a decreasing function of social capital. In our theoretical model, there exists a critical value such that ffrm will not invest in social capital if...

In this note, we present a wealth model of a two-country economy where ffnancial assets and goods are traded. We consider the case where the agents are risk neutral, a very common assumption in ffnance in order to have explicit solutions for prices, and in particular in international ffnance for...

This note provides an intuitive and simple proof of the existence of equilibrium in an incomplete ffnancial economy with numeraire assets, when the preferences are represented by concave, strictly increasing functions..

We consider a model with an finite number of states of nature where short sells are allowed.