A simple model with asymmetric information, in which inventory holders or traders submit demand curves to an auctioneer, has a unique partially revealing equilibrium. We wonder whether the agents can plausibly coordinate on this equilibrium through "eductive" reasoning relying on Common...

Cet article propose un panorama critique de la litterature empirique, recente ou plus ancienne, consacree a l'hypothese d'alea moral, selon laquelle une couverture maladie plus complete conduirait a davantage de depenses.

We study, in a model with unemployment, how labour market status affects the preferences for public spending, whether in the form of a public good or subsidies. We then derive the implications for the dynamics of government expenditures, under the hypothesis of majority voting.

Discrete-choice models provide a tractable method and a simple way to represent utility-maximizing labor supply decisions in the presence of highly nonlinear and possibly non-convex budget constraints. Thus, it is not surprising that they are so extensively used for ex-ante evaluation of...

Gravity equations have been a very useful and powerful tool to model international trade in goods and asset portfolios. However, the negative impact of distance (justified by trans-portation costs for trade in goods and by transaction costs for trade in assets) is surprisingly high. This paper...