In this paper a stochastic dynamic general equilibrium (DGE) model with capital accumulation is augmented by sticky wages. Wages are set in a staggered way as in Taylor (1980) implying that the optimal wage will be set for two periods. Prices are also sticky since there are adjustments cost of...

This paper analyzes nature protection by a social planner under different "utilitarian" social welfare functions. For that purpose we construct an integrated model of the economy and the ecosystem with explicit consideration of nonhuman species and with competition between human and nonhuman...

Predator-prey models of the Lotka-Volterra type and their refinements describe predator-prey interactions taking populations as basic units of analysis. In contrast to these macro models we derive interdependent population growth functions of a predator and a prey species from a micro ecosystem...

This paper analyzes the dynamics of a two-dimensional microfounded predatorprey model. It is shown that the dynamics closely resemble those of a model commonly used in mathematical biology if parameters of the latter are suitably restricted. The positive equilibrium of the microfounded model is...

Cultural capital is assumed to benefit all members of society. It is accumulated through the consumption of cultural services and is diminished through depreciation. Using the stock of cultural goods, cultural services are provided by the cultural services industry; the stock of cultural goods...

Using our updated model of the payment exchange system within the banking industry, we have introduced sudden local economic shocks and calculated their effect on the stability of the financial system. Our results suggest that the probability of a total banking failure, i.e., the systemic risk...

Can comparative statements be credible even when absolute statements are not? For instance, can a professor credibly rank different students for a prospective employer even if she has an incentive to exaggerate the merits of each student? Or can an analyst credibly rank different stocks even if...

This paper analyzes the impact of vertical integration on investment and other strategies in a dynamic common agency framework. Movie distribution is used as a motivating example. The model matches several facts about movie distribution; distributors avoid head-to-head new hit releases, hits...

We introduce a racing model with multiple product generations, product innovation, spin-outs, and licensing. Industry conditions and innovation characteristics affect who wins the race and who markets the resulting product. Small firms market their innovations when they pioneer a new generation...

Der Bestimmung risikoadäquater Diskontierungssätze kommt bei der Unternehmensbedeutung eine zentrale Bedeutung zu. Wird zu deren Bestimmung in der praktischen Anwendung das CAPM verwendet, gilt es dabei, risikolose Zinssätze und Risikoprämien zu bestimmen, für die erwartete Renditen des...