In a continuous-time model of capital accumulation, there are convexity or concavity conditions on benefit and cost functions which ensure that dynamical necessary conditions for optimality are also sufficient. Non-convexities can occur in various ways: the Hamiltonian can fail to be concave...

This paper provides estimates of the cost of protection to the Canadian economy for the mid 1970s on the order of 8-10 percent of GNP. Both unilateral and multilateral tariff reduction calculations are done. The estimates are based on an applied general equilibrium model incorporating scale...

A crucial aspect of regulating an oligopoly characterized by the presence of fixed costs in the determination of the correct number of firms in the industry. This paper examines direct price and entry regulation and the indirect regulation through public ownership of a single firm which competes...

This paper proposes a general equilibrium model with the feature that value maximizing firms which obtain financing in a competitive capital market will, when bankruptcy is possible, have capital structures which are equilibrium determined variables. This contrasts the traditional view which...

This paper considers the implications of alternative managerial incentive function for reducing costs in different market structures. An incentive function relates the income received by managers to the profits attained by the firm. Managers may choose the amount of effort they devote to cost...