Katz and Stark (1986) have proposed two reasons for rational workers to migrate to urban areas even when the urban expected income is lower than rural income. We propose to more, viz., scale economies in consumption and differential income variance in favor of the urban area. In each case,...

We show that (1) a social ordering on R 0 that satisfies Strong Paretoness, Invariance with respect to a Positive Proportional Transformation and Lower Semi-Continuity does not exist and (2) that a social ordering or R 0 that satisfies Weak Paretoness, Invariance with respect to an Affine...

We show that an output sharing scheme with an egalitarian bias is inconsistent with first best production level in a team with self-interested nonidentical members.

Moral is a proverbial hidden variable in models of social games. Its importance is unquestioned but it ordinarily defies operational definition. We attempt here to parameterize its role and trace how it impacts on social production and welfare in a Nash-like bargaining games. Synergy is...

We examine the three options at the policymakers disposal to pull the Philippine economy out of the currency crisis and propel it to a sustainable growth orbit: the BSP option, the incentives restructing option, and the protectionist option. In a situation of financial panic and the resulting...

The prohibition of the sale or usufruct of land under the Comprehensive Agrarian Reform Law has, in effect, destroyed the legal land market and, in its wake, the legal rural credit market. These markets have gone underground resulting in very high transaction cost and bankruptcy to farmers....

We estimates the affordable wage adjustment for various types of firms (by orientation and by share of labor in total cost) on the basis of reasonable estimates of price responses to the currency crisis. We conclude that, to minimize the likehood of layoffs, no more than 10 percent wage...

We show that analysis of control problems with a "reduction set," i.e., a subset of the control vector that satisfies certain strong conditions, avoids the "curse of dimensionality." The problem boils down to solving n static equations in n unknowns (the control plus the state variables) and...

We construct a dynamic decision model where foreign borrowing figures as one of the instruments to maximize welfare over a planning horizon. We hypothesize a relation, a rather reasonable one, between the repayment schedule and the debt ceiling. For every period, there exists an optimal per...

We show that the Pareto superiority of loan repayment in-kind within a tied credit arrangement to a cash-for-cash scheme under uncertain output price depends crucially on the farmer loan demand elasticity and his risk attitude. When demand is inelastic, risk aversion among farmers is required...