Showing 1 - 10 of 22
. Utilizing a first order approach, the asymptotic properties of symmetric equilibria in discriminatory and uniform price auctions …
Persistent link: https://www.econbiz.de/10009458995
In this paper, we study the asset pricing implication of imprecise knowledge about rare events. Modeling rare events as jumps in the aggregate endowment, we explicitly solve the equilibrium asset prices in a pure-exchange economy with a representative agent who is averse not only to risk but...
Persistent link: https://www.econbiz.de/10009432806
of PFE, which turn out to be the only kind of equilibria occurring in this model. We also find that when a PFE exists …, either (i) it is unique, or (ii) there is a continuum of equilibria: in fact, every Pareto optimal allocation is supported as … on transactions in financial markets. Portfolio constraints however may give rise other types of equilibria, in addition …
Persistent link: https://www.econbiz.de/10009433019
General financial models have become workhorse models in the fields of macroeconomics and finance. These models have been developed and extensively studied by general equilibrium theorists. What makes them so applicable for macroeconomics and finance is the well accepted fact that models with a...
Persistent link: https://www.econbiz.de/10009439043
We combine general equilibrium theory and théorie générale of stochastic processes to derive structural results about equilibrium state prices.
Persistent link: https://www.econbiz.de/10009452546
This paper considers the generalized second-best analytics of optimal restructuring under a political constraint, building on the modeling approach in Dehejia (1997). It is shown that the second-best optimum entails administering the terms of trade shock fully at the initiation of the reform,...
Persistent link: https://www.econbiz.de/10009477447
We quantify the effect of financial leverage on stock return volatility in a dynamic general equilibrium economy with debt and equity claims. The effect of financial leverage is studied both at a market and a firm level where the firm is exposed to both idiosyncratic and market risk. In a...
Persistent link: https://www.econbiz.de/10009441057
The current obesity crisis in the United States is generating numerous alternative policy options for combating the problem. One alternative that has been widely proposed is an excise or sales tax on sugar-sweetened non-alcoholic beverages. This literature started out within a very simple...
Persistent link: https://www.econbiz.de/10009444570
Due to the complexity of general and partialequilibrium models, conventional sensitivity analysis,qualitative reviews or literature-based meta-analyses donot allow for detailed assessments of the role ofindividual parameters and policy shocks across differentmodels. Therefore, the partial...
Persistent link: https://www.econbiz.de/10009445655
This paper analyses the impact of quality based labelling on product prices,factor allocation and the resulting effects on producers within the context of aninternational trading system. A general equilibrium model, calibrated to 1998 data,describes United States and European Union labelling...
Persistent link: https://www.econbiz.de/10009445941