Showing 1 - 10 of 10
This paper analyzes the welfare implications of regulating some but not all monopolistic industries of an economy (i.e., marginal regulation). It is shown that marginal regulation decreases welfare if a large fraction of all industries are monopolistic. Furthermore, the paper shows that the...
Persistent link: https://www.econbiz.de/10005233019
How far can we go in weakening the assumptions of the general equilibrium model? Existence of equilibrium, structural stability and finiteness of equilibria of regular economies, genericity of regular economies and an index formula for the equilibria of regular economies have been known not to...
Persistent link: https://www.econbiz.de/10005014586
A dynamic pure-exchange general equilibrium model with uncertainty is studied. Fundamentals are supposed to depend continuously on states of nature. It is shown that: 1. if financial markets are complete, then asset prices vary continuously with states of nature, and; 2. if financial markets are...
Persistent link: https://www.econbiz.de/10005014887
The paper introduces some simplifying tools and methods for studying Rational Beliefs and for proving existence of Rational Belief Equilibria: We identify a set of stable non-stationary stochastic processes, named SIDS processes. Furthermore we introduce the concept of a Rational Belief...
Persistent link: https://www.econbiz.de/10005543473
This paper considers a standard general equilibrium model with incomplete markets, which is extended to incorporate durable goods and the possibility of default, following Dubey, Geanakpolos and Shubik (1990) and Geanakoplos and Zame (1998). In such a model asset markets will not be active...
Persistent link: https://www.econbiz.de/10005749520
This paper proposes an abstract model of commodity differentiation that incorporates manufacturing imprecision and dimensioning and tolerancing standards. The potential consistency of such model based on engineering consideration is analyzed. For a large pure exchange economy, competitive...
Persistent link: https://www.econbiz.de/10005749556
An economy with two dates is considered, one state at the first date and a finite number of states at the last date. Shareholders determine production plans by voting — one share, one vote — and at ?-majority stable stock market equilibria, alternative production plans are supported by at...
Persistent link: https://www.econbiz.de/10005749639
This paper attempts to clarify the connection between simple economic theory models and the approach of the Cointegrated Vector-Auto-Regressive model (CVAR). By considering (stylized) examples of simple static equilibrium models, it is illustrated in detail, how the theoretical model and its...
Persistent link: https://www.econbiz.de/10005749713
We consider a general equilibrium model where households operating in a competitive market environment can have several members and make efficient collective consumption decisions. Individuals have the option to leave the household and make it on their own or join another household. We study the...
Persistent link: https://www.econbiz.de/10005749717
A pure exchange, general equilibrium model is considered and the equilibrium set is studied. It is shown for all total endowments and an open and dense set of preferences that if there arel2 commodities andm2 consumers then there exists a set of distributions of endowments with nonempty interior...
Persistent link: https://www.econbiz.de/10005225455