In a multicommodity life cycle setting with uncertainty and time additive expected utility, this note finds necessary and sufficient conditions on preferences for all but one optimal decision each period to be independent of the future and of uncertainty.

For a risk neutral lender and a group of borrowers facing identical revenue risks we compare individual loans and group lending. We stress the importance of group liquidity in defining the necessary risk premium. There are no welfare differences between the loan forms. However, the default rates...

We formalise the joint choice of labour force participation and mode of travel to work together with the hours of work decision for unitary and collective households. Conditioning on the primary workers decisions, we analyse the decisions of the secondary worker in a simplified setting in which...

The UK income support system offers a guaranteed income level to single adults available for full time work so long as both earnings and hours worked are below a threshold level. In this paper we examine the effects of this on labour supply. We show that the restriction on hours worked is...

Generally, two facts occur with strategic complementarities and fixed prices: i) the equilibria are multiple, and ii) if the complementarities are strong, the law of demand is violated and the equilibrium is unstable. In this paper, we analyse the effect of price flexibility on these features as...

Scarf's economy has been a vehicle in understanding stability properties in exchange economies. The full set of market equilibria and Pareto optimal allocations for this economy has not been analysed. This paper aims to do that. Firstly, we examine the Pareto optima and we find three different...

Generally, implementation of Pigovian taxes to correct for market failure requires an enormous set of information. For each commodity-person combination a different tax is required to correct the resulting market inefficiency. In this paper, we analyse interdependent preferences and inefficiency...