In this paper we study the existence of bubbles for pricing equilibria in a pure exchange economy à la Lucas, with infinitely lived homogeneous agents. The model is analyzed under fairly general assumptions: no restrictions either on the stochastic process governing dividends’ distribution or...

This paper introduces a new approach to the study of rates of convergence for posterior distributions. It is a natural extension of a recent approach to the study of Bayesian consistency. Crucially, no sieve or entropy measures are required and so rates do not depend on the rate of convergence...

We show that under fairly mild conditions, a maximin expected utility preference relation is probabilistically sophisticated if and only if it is subjective expected utility.

We prove results that relate random correspondences with their measurable selections, thus providing a foundation for viewing random correspondences as "bundles" of random variables.

In recent years the Dirichlet process prior has experienced a great success in the context of Bayesian mixture modelling. The idea of overcoming discreteness of its realizations by exploiting it in hierarchical models, combined with the development of suitable sampling techniques, represent one...

We design the revenue-maximizing auction for two goods when each buyer has bi-dimensional private information and a superadditive utility function (i.e., a synergy is generated if a buyer wins both goods). In this setting the seller is likely to allocate the goods inefficiently with respect to...

Many scholars assert that the process of privatizing state-owned firms in Central and Eastern Europe has been a success because privatized firms are performing better than they did before. The assertion is an empty piece of poetry. To begin with, privately owned firms are more efficient than...

Professor Cohen presents and analyzes a taxonomy of the potential harms of human genetic “germline engineering.” Germline engineering is the process of “artificially” and purposefully changing the genes of an organism such that when it procreates the changes replicate themselves in the...

Open-access, common-pool resources, such as many fisheries, aquifers, oil pools, and the atmosphere, often require some type of regulation of private access and use to avoid wasteful exploitation. This paper summarizes the arguments and literature associated with this problem. The historical and...

This paper provides a detailed description of fiscal federal relations in Australian. The keystone to those relationships is the application by the Commonwealth Grants Commission of the principle of fiscal equalisation - that each State should be able to provide the same standard of services to...