Cross-sectional evidence on price levels is scarce for all countries. However, several studies suggest that there might exist considerable differences in price levels within countries, which has obvious welfare implications. A sample of price levels in 50 German cities in 1993 is used to analyse...

The economic geography literature distinguishes between two types of reasons for economic agglomeration. Regional concentration of economic activity can be attributed to 'first nature' meaning geographic advantages and disadvantages given by nature or to 'second nature' meaning agglomeration...

Fairness considerations are important determinants of behavior in unstructured bargaining situations with equal bargaining power. If the surplus over which the bargaining takes place was created by separate, individual efforts, several entitlement-related fairness ideals might be relevant. In...

Understanding a Complex World -- What is Complexity? -- Measurement of Complexity -- Complexity Economics -- The Economy as a Complex Adaptive System -- Nonlinearity -- Feedback, Circular Causality, and System Dynamics -- Self-Organization -- Emergence, Levels, and Hierarchy -- Economic...

Chapter 1: Introduction -- Chapter 2: Importance of Climate Change in Economics -- Chapter 3: Mainstream Climate Economics -- Chapter 4: What is Problematic about Mainstream Climate Economics? -- Chapter 5: Why We Do Not Have More Pluralism -- Chapter 6: Climate Change and Responsibility --...

A simple contract-theoretic model is used to show that, in a democratic system, positive political rents and efficient provision of public goods can characterize an equilibrium in the political contest. Moreover, this equilibrium is stable under the assumption that a fraction of the political...

An auction is viewed as a process that in equilibrium generates a binary lottery for each bidder,which the bidder "buys" with his bid. This view allows for a simple way to consistently assess differences in bidding behavior over different bidders and different auctions. E.g. all auctions covered...

This paper analyzes the bahavior of a principal with bounded memory who can offer a two-period performance-based contract to an agent. In the model he can choose whether to evaluate the agent after each period or only at the end of the second period. If the agent is wealth-constrained, the...

The paper tests for potential pricing-to-market for a wide range of export industries in selected transition economies, namely Poland, Hungary and Bulgaria, at the four-digit level over the period 1990-1998. Panel estimation is undertaken and a fixed-effects linear model is estimated. The...

In this paper a model of aggregate investment is derived, which incorporates fixed investment costs and capital market imperfections on the micro-level. Aggregate investment reacts nonlinearly with respect to aggregate shocks to productivity and liquidity of firms. Employing nonparamatric kernel...