In open-economy macroeconomics there is a monetary model in the Keynesian tradition that is deemed serviceable for analyzing the short run and there is a nonmonetary neoclassical theory thought capable of handling the long run. But do the Keynesian and neoclassical models meet the challenges...

This paper analyzes the effects of international openness on vertical integration decisions. A simple model is presented to represent the asset specificity problem at the heart of many industrial organization economists' analysis of vertical integration.

This paper provides a new rationale for bundling based on informational leverage. It is demonstrated that physically tying a product of established quality to one of unknown quality may mitigate the problem of asymetric information encountered in the latter market. Leveraging reputation in one...

I summarize and extend my results establishing that limited arbitrage is necessary and sufficient for the existence of a competitive equilibrium and for the compactness of the Pareto frontier.

In strictly regular economies limited arbitrage is sufficient for the global invertibility of demand, and necessary and sufficient for the uniqueness of equilibrium. This result is established using algebraic topology and holds in economies with short sales, and with finitely or infinitely many...

With sufficiently well-reasoned and principled reform of tax systems, it is possible to achieve practical simplicity and a reduction in perverse incentives to a far greater degree than under any of the "flat-rate" proposals being advanced, without significant sacrifice of progressivity. But it...

The question of Preferential Trading Areas, as we should call them in preference of the misleading phrase "Free Trade Areas" (and Customs Unions) which falsely equates them in the public mind and discourse with nonpreferential Free Trade, has never been distant from international economists'...

A simple model of indirect taxation, evasion, and enforcement is presentedin which some surprising results emerge. Because of a 'market- thinning' effect of high prices, high taxes lead to multiple equilibria (low-price black markets and high-price legal markets), and black- market comparative...

Free markets for health care in Africa do not function properly, in that patients exhibit willingness to pay for health care and yet practitioners are unable to sell their services. Its widely acknowledged that health markets everywhere are troubled with imperfect information. Therefore it is no...