We consider the implications of improving on GATT/WTO tariff negotiations both the most-favoured-nation (MFN) clause and the twin Paretian rules (that negotiations leave the trading world on its efficiency locus and each participating country in a preferred position). It is shown that the set of...

We study a one-sector stochastic optimal growth model with a representative agent. Utility is logarithmic and the production function is of the Cobb-Douglas form with capital exponent alpha. Production is affected by a multiplicative shock taking one of two values with positive probabilities p...

During the last two decades West Bengal has led the rest of the country with regard to agricultural performance and implementation of panchayat institutions. But these developments have begun to level out. At the same time the state has fallen behind in other sectors--industry, higher education...

Capital gains play an essential role in the intertemporal allocation of resources, but they can also fuel self-fulfilling bubbles. The simple case of 2 "identical" capitals is analyzed in an OG model. The only trajectory in which expectations are realized at every date is the one in which blue...

We propose a new asymptotic approximation for the sampling behavior of nonparametric estimates of the spectral density of a covariance stationary time series. According to the standard approach, the truncation lag grows slower than the sample size. We derive first order limiting distributions...

A stylized fact associated with inventory behavior is that durable goods production and inventory investment are about 5 times more volatile than those of nondurable goods. This paper shows that the stockout-avoidance theory of inventories (Kahn, AER 1987) featuring demand uncertainty and...

When capacity utilization is allowed to vary, standard equilibrium theory predicts that demand shocks can generate not only closed-economy business cycles that are previously thought explainable only by technology shocks, but also international business cycles that are more consistent with the...

This paper is concerned with the problem of combining a data set that identifies the conditional distribution P (y|x) with one that identifies the conditional distribution P (z|x), in order to identify the regressions E (y|x, middot) identical with [E (y|x, z = j), j element of Z] when the...

We study general equilibrium with nonconvexities. In these economies there exist sunspot equilibria without the usual assumptions needed in convex economies, and they have good welfare properties. Moreover, in these equilibria, agents act as if they have quasi-linear utility. Hence wealth...