We provide a definition of the rational expectations core in an atomless economy with asset markets and show that allocations in the core can be decentralized by a system of asset and spot prices as rational expectations equilibria.

This paper proposes a model where employers have two types of prejudices: racial and spatial discrimination. Because of the first one, black workers have less chance than white workers to find a job. Because of the second one, workers living closer to the city-center have less chances than...

This paper dels with optimal taxation in a two-class economy with two private commodities and labour. We derive optimal non-linear income and linear commodity taxes in the presence of merit goods. We formulate merit goods arguments via pathology of individual choice. We assume weak separability...

This contribution investigates the effectiveness and welfare implications of fiscal policies in a context of multilateral trade, when traders behave strategically. The present approach deals simultaneously with two aspects of fiscal policies: collecting resources for redistributive purposes and...

A component of Nash equilibria is potentially stable if there exists an evolutionary selection dynamics from a broad class for which the component is asymptotically stable. Anecessary condition for potential stability is that the component's index agrees with its Euler characteristic. Second, if...

This paper attempts to identify, in a framework deliberately stripped of unnecessary technicalities, some of the basic reasons why adaptative learning may or may not lead to stability and convergence to self-fulfilling expectations in large socioeconomic systems where no agent, or collection of...