The introduction of banks that issue money and supply balances and pay outtheir profits as dividends is the natural modification of the model of general competitive equilibrium that encompasses monetary economies with an operative transactions technology. Monetary policy sets nominal rates of...

Presidential address for the Twelfth World Congress of the International Economic Association, summarising semi-formally the author's recent work and concerns. Uncertainty and incomplete markets breed demand volatility as well as price and wage rigidities. The conjunction of these leads to...

In this paper the existence of unemployment is partly explaines as being the result of coordination failures. This is achieved by considering a standard general equilibrium modes and splitting the set of commodities in two groups. The first group contains commodities like gold. The prices of...

We propose an extension of the standard general equilibrium model with production and incomplete markets to situationsin which (i) private investors have limited information on the returns of specific assets, (ii) managers of firms have limited information on the preferences of individual...

This survey paper prepared for the Handbook of Utility Theory covers the axiomatic foundation of decision making under uncertainty when conditional preferences are allowed to be state dependent, leading to an expected state-dependent utility representation.

The introduction of banks that issue movey and supply balances and pay out their profits as dividends is the natural modification of the model of general competitive equilibrium that encompasses monetary economies. Interest rates are suitable instruments for the control of expected inflation but...