This research considers the positive theory of monetary integration in a general equilibrium monetary model of the world economy. The analysis demonstrates that, in the face of uncertainty and incomplete asset markets, participation in a monetary union may be welfare improving since it...

Results of U.S. survey of attitudes toward government were recently published. Respondents were asked whether spending on various government programs should be increased or cut. A similar set of questions were asked a decade ago. Comparisons reveal preferences for various public goods have...

This paper separates the "natural" rate of unemployment into two components: frictional and long-term unemployment. A simple labour market model with spatial separation and Markov production shocks is presented. The existence of a stationary equilibrium is proved, and its properties are...

This paper uses a longitudinal data base of establishments and firms taken from the Canadian Census of Manufactures to measure the intensity of mergers and to compare them to other change that leads to firm turnover. The importance of mergers is placed in the context of the plant and firm...

This paper presents a model with rental housing vacancies in equilibrium. Because of the indivisibility and multi-dimensional heterogeneity of housing units, the market is thin. As a result, a typical household entering the market is willing to pay a premium of its most-preferred over its second...

This paper derives a representation of preferences for a choice theory with vague environments; vague in the sense that the agent does not know the precise lotteries over outcomes conditional on states. Instead, he knows only a possible set of these lotteries for each state. Thus, this paper's...

This paper examines regional population distribution when there is an interregional transfer policy without commitment. We introduce explicitly the following time structure of actions. Individuals make decisions on locational choices freely ex ante, but are immobile ex post. The interregional...

This paper introduces search unemployment into an intertemporal maximization model with capital accumulation. It characterizes the decentralized search equilibrium, examines the dynamic effects of factor income taxation and calculates the welfare cost of the taxation. Four tax policies are...

Scientific revolutions require sound evidence overwhelmingly contradictory to the prevailing paradigm, and willingness to believe such evidence. Histories of science have traditionally concentrated on the first factor. The second factor indicates, however, that attitude change may play an...