We consider option pricing when dynamic portfolios are discretely rebalanced. The portfolio adjustments only occur after fixed relative variation of the stock price. The stock price follows a marked point process and the market is incomplete. We first characterize the equivalent martingale...

We consider a pure exchange economy under uncertainty in which the traders have the non-partition structure of information. They willing to trade the amounts of state-contingent commodities and they know their own expectations. Common knowledge of these conditions among all the traders can...

We apply the set up of limited commitment model to empirically test the role of informal risk-sharing networks using panel data on informal credit transactions from rural Ethiopia. The empirical estimates provide convincing evidence for the belief that enforcement problem limits the direct role...

The introduction of the paper discusses the different opinions about income inequalities and income distribution. Further the author presents the most important alternative methods for measuring income inequalities. Contrary to the traditional income distribution analysis the underlying data...

Using the 2004 income survey of the Hungarian Central Statistical Office we consider the targeting of two types of unemployment-related benefits: a) unemployment insurance and re-training benefits and b) the unemloyment assistance (UA). The evidence suggests that unemployment-related benefits...

Sorting into public sector jobs may be motivated not only by the available income but also by other aspects, such as stronger demand for security or for social usefulness. The demand for larger job security - beside other factors - can be the consequence of family circumstances. We have...

Using the 2004 income survey of the Hungarian Central Statistical Office we consider the targeting of two types of unemployment-related benefits: a) unemployment insurance and re-training benefits and b) the unemloyment assistance (UA). The evidence suggests that unemployment-related benefits...

The introduction of the paper discusses the different opinions about income inequalities and income distribution. Further the author presents the most important alternative methods for measuring income inequalities. Contrary to the traditional income distribution analysis the underlying data...

Sorting into public sector jobs may be motivated not only by the available income but also by other aspects, such as stronger demand for security or for social usefulness. The demand for larger job security - beside other factors - can be the consequence of family circumstances. We have...

We present a theory of the choice of alternative democratic constitutions, a majoritarian or a consensual one, in an unequal society. A majoritarian democracy redistributes resources from the collectivity toward relatively few people, and has a relatively small government and low level of...