This paper is concerned with those actions of business firms which are aimed at managing the business and economic risks and uncertainties. The standard example of risk management is finance and insurance but these only capture a small fraction of the business risk faced by a company in a...

The paper seeks to lay out a stock-flow-based theoretical framework that provides a foundation for a general theory of pricing. Contemporary marginalist economics is usually based on the assumption that prices are set in line with the value placed on goods by consumers. It does not take into...

We study the implications of a particular form of irrationality on the pricing behavior of firms in a monopolistic-competitive market with incomplete information. We assume that firms are overconfident, meaning that they over-estimate their abilities to understand the correct model of the...

A large body of literature finds that exporters do not pass nominal exchange rate movements fully through to destination market prices over short time horizons. This imperfect passthrough has been widely attributed to strategic quot;pricing-to-marketquot;, whereby exporters deliberately accept...

We analyze the salient features of networks and point out the similarities between the economic structure of networks and the structure of vertically related industries. The analysis focuses on positive consumption and production externalities, commonly called network externalities. We discuss...

This paper analyzes the distributive incidence of gasoline tax in Chile, using the Fifth and Sixth Family Budget Surveys. Incidence is calculated for income and expense distribution so that the potential differences between temporary and permanent income are taken into account. The Suits Index...

This paper is a study of the shape and structure of the distribution of prices at which an identical good is sold in a given market and time period. We find that the typical price distribution is symmetric and leptokurtic, with a standard deviation between 19% and 36%. Only 10% of the variance...

Bulk shipping providers predominantly supply transportation services for bulk cargo, such as iron ore, grain and coal. As steel price index is a leading indicator of Baltic Dry Index, the cost of marine fuel becomes one of the key costs for shipping providers. By collecting data and building a...

Using grocery store data we study the relationship between dispersion and the business cycle. Our findings reveal that overall there is no robust and significant relationship; however, these mask important heterogeneity in the cyclicality of dispersion at the category level.

This volume – Predicting Crisis: Five Essays on the Mathematic Prediction of Economic and Social Crises – is the first of three sets of essays. In this first set the economic and social history of the United States is shown to be a “system of movement,” i.e. a logical and mathematic...