Theoretical models of growth and trade suggest that patterns of international specialisation are inherently dynamic and evolve endogenously over time. Initial comparative advantaged are either reinforced or gradually unwound with the passage of time. This paper puts forward an empirical...

A vector autoregression with deterministic terms and with no restrictions to its characteristic roots is considered. Strong consistency results for the least squares statistics are presented. This extends earlier results where deterministic terms have not been considered. In addition the...

In a game where the players have non-additive beliefs, we explore the beliefs implicit in the equilibrium behaviour of the players. Under one interpretation, we can show that there are well-defined departures from common knowledge of the game among the players. Our argument revolves around a...

In an environment in which both workers and firms undertake match specific investments, the presence of market competition for matches may solve the hold-up problems generated by the absence of complete contingent contracts. In particular, this paper shows that in a world in which workers' and...

This book is a non-technical introduction to auction theory; its practical application in auction design (including many examples); and its uses in other parts of economics. It can be used for a graduate course on auction theory, or – by picking selectively – an advanced undergraduate or MBA...

We distinguish two notions of substitutes for discrete inputs of a firm. Class substitutes are defined assuming that units of a given input have the same price while unitary substitutes treat each unit as a distinct input with its own price. Unitary substitutes is necessary and sufficient for...

This paper examines the comparative statics of Walrasian economies with excess demand functions which obey the weak axiom. We show that in these economies there is a precise sense in which goods that are in excess supply (demand) after some perturbation will experience a fall (rise) in its...

This paper is concerned with the Bayesian estimation of non-linear stochastic differential equations when only discrete observations are available. The estimation is carried out using a tuned MCMC method, in particular a blcked Metropolis-Hastings algorithm, by introducing auxiliary points and...