The contribution of this paper is to offer a rationale for the observed seasonal pattern in house prices. We first document seasonality in house prices for the US and the UK using formal statistical tests and illustrate its quantitative importance. In the second part of the paper we employ a...

We characterize the equilibrium and optimal resource allocations in a general equilibrium model of monopolistic competition with multiple asymmetric sectors and heterogeneous firms. We first derive general results for additively separable preferences and general productivity distributions, and...

Equilibria and optima generally differ in imperfectly competitive markets. While this is well understood theoretically, it is unclear how large the welfare distortions are in the aggregate economy. Do they matter quantitatively? To answer this question, we develop a multi-sector monopolistic...

We provide a theoretical demonstration that an exponential income distribution will emerge spontaneously in a standard Arrow-Debreu general equilibrium model, which is intended to describe the income structure of the low- and middle-class in a well-functioning free-market country. Furthermore,...

Previous research on the intertemporal approach is based on the standard, real model of the balance of trade. This paper outlines a more general model that allows for monetary non-neutrality, and tests the general model against a restricted version that embodies neutrality. While the empirical...