We argue that financial frictions and financial shocks can be an important factor behind the slow recoveries from the three most recent recessions. To illustrate this point, we augment a simple RBC model with a collateral constraint whose tightness is randomly disturbed by a shock that...

The number of electric vehicles in China is expected to grow rapidly, triggering the nationwide large-scale construction of charging stations. At the same time, a reasonable charging price has not been established. This article records the views of station operators and EV users and calculates a...

We compare the welfare effects of different emission-reduction policies in a general equilibrium model with heterogeneous plants. We found that an emission standard could outperform an emission tax or a tradable permit. We characterize the equilibrium conditions for this result to hold. We...

The monetary search model by Lagos and Wright (2005) is extended with imperfect information about nominal shocks à la Lucas (1972 and 1973). This framework is useful to estimate the welfare costs of expected and erratic inflation because it provides an avenue to identify the transactions...

Empirical studies suggest systematic relationships between plant’s productivity and plant’s emissions and emission-abatement costs. This paper demonstrates that productivity dispersion across plants is an important factor that influences the transmission of environmental policy. Within a...

When a society wants to control aggregate emission under a certain target level, is it more desirable to impose a tax or a regulatory standard on emission? To answer this question, we explore a model where plants are heterogeneous in productivity and monopolistically competitive in the...

The monetary search model by Lagos and Wright (2005) is extended with imperfect information about nominal shocks as in Lucas (1972). An analytical solution exists with logarithmic preferences. In general, individuals hold precautionary balances. Calibrated to United States postwar data, the...

Quantum nonlocality is an experimentally measurable quantum correlation indicated by the violation of Bell inequality. Previous studies show that bipartite Bell inequality is not violated in various translationally invariant spin models. In this paper, we study bipartite Bell inequality in an...

In this paper, we propose a robust sequential quadratic programming (SQP) method for nonlinear programming without using any explicit penalty function and filter. The method embeds the modified QP subproblem proposed by Burke and Han (Math Program 43:277–303, <CitationRef CitationID="CR9">1989</CitationRef>) for the search direction,...</citationref>