This paper characterizes precisely the optimal capital policy for a firm facing a non-price rationing constraint in the market for investment funds. With this particular capital market imperfection firms may generally 'overinvest' relative to a perfect market case, rather than underinvest as...

Conventional cost-benefit analysis has generally not taken into account the care in which the project is sufficiently large that its introduction would have significant general equilibrium effects. This paper examines rules that indicate whether such large projects should be accepted or...

An applied general equilibrium model of a small open economy is described. The model incorporates industrial organization structures heretofore absent from applied G.E. trade models. Scale economies, product differentiation and explicit price setting are novel model features. Some illustrative...

Evaluating projects on the basis of aggregate (unweighted) costs and benefits is a wide spread practice in cost-benefit analysis. This practice continues despite serious flaws in the "compensation principle", which is the usual welfare theoretic basis to justify the procedure. For this reason we...

Consider the problem of regulating supply of a homogeneous good in a market with more than one supplier and a large number of buyers. When prices are regulated and set under conditions of imperfect information and uncertainty supply and demand will almost never be equal ex post. In order to...

Manufacturing industry in Northern Ireland receives extensive financial support from government with the objective of improving the economic performance of the plants that are directly assisted. Many studies have tried to assess the impact of such assistance, but without the counterfactual...

This paper provides a survey and critique of how spatial links are taken into account in empirical analysis by applied economists/regional scientists. Spatial spillovers and spatial interrelationships between economic variables (e.g. unemployment, GDP, etc) are likely to be important, especially...

This paper presents an overview of various models of regional growth that have appeared in the literature in the last 40 years. It considers the past, and therefore supply-side models, such as the standard neoclassical, juxtaposed against essentially demand-side approaches such as the...