Within the context of a competitive insurance market, this paper examines the impact of ambiguity on the behavior of buyers and sellers. Ambiguity is described through a probability measure on an extended state space that includes extra ambiguous states. It is shown that if insurers face the...

The role of government policies in the economic growth of Singapore has been well documented. The government's actions, such as the provision of appropriate infrastructure, have resulted in massive inflow of foreign capital to Singapore. Government sponsorship of selected industries and foreign...

By reinterpreting Savage's axioms as axioms of the social rationality over resource allocations, we derive a social welfare function encompassing individual social values and a social attitude towards distributional inequality. Wealth maximization becomes the purpose of law only if individuals...

An examination of the available data reveals that the size of government varies considerably across time and countries. By making use of a simple general equilibrium model, this paper demonstrates that size of government is affected by the availability of capital and labour within an economy....