Discontinuities in the vector field of differential equations are a typical characteristic of disequilibrium dynamics. One way of co ping with this problem is offered by the Filippov solution. The autho rs prove existence and uniqueness of a Filappov solution for a so-cal led sliding trajectory...

In a framework of a monetary asset pricing model with production the effects of monetary and fiscal policy shocks are investigated. The model is kept simple enough to generate explicit formulae for the equilibrium price functions. With money yielding liquidity services in the exchange process...

In a framework of a two-country monetary asset-pricing model with production the effects of stochastic and structural fiscal and monetary policy shocks are investigated. The model is kept simple enough to allow the derivation of closed form solutions of the functional equation system for the...

We develop an OLG economy with accumulation in human capital. Heterogenity among individuals in each generation results mainly from the (random) innate ability assigned to each individual. We analyze how better information, which allows better 'screening' during the 'youth' period when the...

The paper generalizes Blackwell's theorem, according to which the welfare effects of an improvement in information are positive to certain class equilibrium production economies. The consumer preferences in this class of economies exhibit either constant relative risk of constant risk aversion...

The paper constructs a theoretical framework in which the value of information in general equilibrium can be linked to the efficiency of the risk sharing mechanism. We demonstrate that in economies with production, information may have negative value even though no risk sharing markets exist. As...

In a Bayesian setting, investments can be risky either because they are opaque, i.e., their payoff-relevant signals are noisy, or because they are fundamentally risky, i.e., the variance of the prior is high. When interest rates are low (high), investors favor opaque (transparent) projects that...