Demographic trends in most developed economies are characterized by rising longevity and decreasing birthrates. These trends endanger the sustainability of the current public pension systems. Therefore social security reform proposals are on the agenda in many countries. This paper demonstrates...

This paper analyzes the Nash equilibrium behavior of risk-averse oligopolistic firms under uncertain demand. It is shown that in the presence of unbiased forward markets the Nash Equilibrium (NE) output increases, that is, forward markets enhance competition. Unlike the competitive or monopoly...

We consider a model with a competitive risk-averse exporting firm who faces uncertain exchange rates in a multiperiod analysis. The capital stock (or fixed input) has to be determined at the outset while the variable input (labor) is chosen optimally at the beginning of each period, but before...

The paper studies the effect of tax asymmetry on (risk neutral) competitive firm's production and optimal hedging behavior under price uncertainty. Assuming that the tax rate on profits is higher than the compensation rate for losses, we show that: (a) in the absence of risk sharing arrangements...

Recent empirical studies (see e.g. Kravis and Lipsev [1977, 1978], Isard [1977], Aspe and Giavazi [1982]) demonstrate that there are notable divergencies between domestic and export prices. This empirical evidence suggests that the law of one price is systematically violated. Kravis and Lipsey...