This paper analyzes a North-South trade model with costly offshoring and equilibrium unemployment due to union wage setting. Reductions in the amount of resources required in the offshoring process usually decrease employment, though the opposite can happen at a low initial level of offshoring...

Much of the literature on financial markets has not dealt with dependency of project revenues. In a setup similar to the seminal SW model, we show that the type of equilibrium can crucially depend on the degree of project dependency. By making aggregate payoffs risky, households face capital...

This paper analyzes socially responsible investment in the Walrasian model with uncertainty. It proves the following neutrality result: if each consumer's utility function with social responsibility is a function of her utility without social responsibility and asset holdings and if financial...

DeLong (1990a) et al. show that in the presence of positive feedback traders rational speculation can be destabilizing, in that it drives the price of a risky asset above its expected value. A generalization of their seminal model with additional trading dates and an additional informative...

In a paper in this journal, Schnabel and Roumi (1989) assert that if uninsured debt is risky, a levered firm takes a casualty insurance with a positive safety loading if, and only if, the amount of debt is sufficiently high. This note shows that, in marked contrast to this assertion, the correct...