We explore the constrained efficient observational learning model - as when individuals care about successors, or are so induced by an informationlly-constrained social planner. We find that when the herding externality is correctly internalized in this fashion, incorrect herds still obtain. To...

This paper explains the observed stagnation of 'Happiness' measures in the post-war period through a growth model in which agents care about conspicuous consumption.

This paper studies the interplay between two types of conditions guaranteeing the monotonicity of market demand : conditions on individual preferences and conditiosn on the distribution of income.

Empirical models of inflation often incorporate equilibrium correction effects based upon levels of prices and input costs. Such models assume that the steady-state price-cost markup is constant, but recent research suggests that this may not be true for the Euro area economy, which has...

We show that Grandmont's (1992) model of demand heterogeneity can be a model of heterogeneity in the complementary or sign-balancing sense. By this we mean that heterogeneity has the following form: given a change in price, agents respond heterogenously - some by increasing their expenditure...

This paper gives a unified and simple treatment of three related questions in the demand theory of the weak axiom: (i) Is there an elementary, i.e., non-fixed point theoretic, proof of equilibrium existence when the excess demand function of an economy satisfies the weak axiom? (ii) What...

The title of this Presidential Address is chosen to highlight the way in which the subject of income distribution has in the past been marginalised. For much of this century, it has been very much out in the cold. There are signs that in the 1990s it is being welcomed back, and I shall be...

A finite population of agents playing a 2 x 2 summetric game evolves vy adaptive best response. The assumption that players make mistakes is dropped in favour of one where players differ, via payoff heterogeneity.

In the classical Condorcet jury model, different jurors' votes are independent random variables, where each juror has the same probability p1/2 of voting for the correct alternative. The probability that the correct alternative will win under majority voting converges to 1 as the number of...