It is known through an earlier work (Grandmont and Laroque [2]), which analysed discontinuous least squares learning dynamics (around the steady state) in the case of linear temporary equilibrium maps, that there always exists an open cone of initial conditions for which the dynamics are locally...

Bank crises, by interrupting liquidity provision, have been viewed as resulting in welfare losses. In a model of banking with moral hazard, we show that second best bank contracts that improve on autarky ex ante require costly crises to occur with positive probability at the interim stage. When...

In this paper, we introduce the notion of a linked domain and prove that a non-manipulable social choice function defined on such a domain must be dictatorial.