With the continuous development of the social giant system, the independence of subsystem boundaries has decreased under the drive of complex relationships and multiple uncertainties. Decision makers are required to consider the interactions between different systems to develop precise policy...

In this paper I model the optimal monitoring and enforcement strategy when inspection capacity is fixed by budget or manpower constraints. I adopt a leverage enforcement structure that classifies firms into two groups with different enforcement intensities. Optimal monitoring and enforcement...

We model the optimal design of programs requiring heterogeneous firms to disclose harmful emissions when disclosure yields both direct and indirect benefits. The indirect benefit arises from the internalization of social costs and resulting reduction in emissions. The direct benefit results from...

Using a multi-period general equilibrium model, this paper extends the results of Mankiw (1991) by showing that monopolistically competitive firms may require 'relatively large' menu costs to dissuade them from changing prices in response to an aggregate demand shock that is perceived to be...

This paper uses recent developments in measuring correlation to examine the relationship between inflation and relative price variability (RPV). The results suggest that the positive correlation holds not only in the short run but also in the long run. This finding has important implications for...