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We propose a life cycle of bubbles (from a quiescent stable state to a bubble to its collapse) where the role of monetary management is crucial. We claim that the policy of liberalizing short-term capital and private foreign borrowing (which was in effect a non-inflationary expansionary...

Weak state capacity can lead to poor economic performance owing to an inability to solve collective action problems associated with lumpy but highly productive infrastructure projects. We formulate a stakeholder buy-in game where two players (regions) must unanimously approve a lumpy...

The rapid appreciation of the Philippine peso and the resulting loss of competitiveness militate against long-term “balanced and sustainable growth”. A review of history shows that fighting inflation with appreciation of currency “seeds” a financial storm. In contrast, the undervaluation...

This paper revisits the record of the Comprehensive Agrarian Reform Program (CARP) in the Philippines over its quartercentury existence. By 2014, it shall have accomplished 99 percent of its target—an impressive success for a government program. As a program to advance the economic welfare of...

We show that if the employer is risk averse, however slightly, there is always a profit sharing contract that will Pareto-dominate the spot wage contract in the sense of pure risk sharing. The smaller is the employer risk aversion, the narrower is the room for profit sharing. The higher the...

Using the share society as a metaphor for the economic system, we construct a microfoundation for the stylized observations about rent-seeking and economic performance. We introduce the concept of rent intensity and show that at symmetric Cournot-Nash equilibrium it falls as value-adding...

We consider teams where information asymmetry (adverse selection and moral hazard) is minimized by entry point screening designed to produce homogenous membership and work group arrangements and job rotation that render effort at worst imperfectly observable. We show that under membership...

We show that when households employ the Cournat-Nash strategy in labor surplus economies, the wage rate is strictly positive, households are underemployed, household members may be openly unemployed, the labor supply curve is upward-sloping and household withdrawal but not worker withdrawal...

We show that (1) a social ordering on R = 0 that satisfies Strong Paretoness, Invariance with respect to a Positive Proportional Transformation and Lower Semi-Continuity does not exist and (2) that a social ordering on R 0 that satisfies Weak Paretoness, Invariance with respect to an Affine...