We survey methods for using micro data in the calibration of dynamic general equilibrium models.

This paper contributes to the micro-foundation of money in centralized markets with idiosyncratic uncertainty. It shows existence of stationary monetary equilibria and ensures that there is an optimum quantity of money. The rational solution of our model is compared with actual behavior in a...

Several models of intra-household decision making have been suggested in the literature. We present a framework that includes all suggested models and variants as special cases. We derive the theoretical predictions of these models for the relationship between expenditures on goods and the...

In the present paper a generalization of the Kalai-Smorodinsky solution to nonconvex n-person bargaining problems is provided. The generalization is obtained by a slight weakening of the axioms used in Kalai-Smorodinsky (1975) and Roth (1980).

Time-budget studies done among contemporary primitive people suggest that the first farmers worked harder to attain subsistence than their foraging predecessors. This makes the adoption of agriculture in the Stone Age one of the major curiosities in human cultural history. Theories offered by...

The paper considers various cooperative equilibrium/solution concepts for atomless exchange economies. A famous result states that in such economies the core is equal to the set of Walrasian equilibria. We consider two arguments against using the core as solution concept in large economies: (1)...

This paper traces the evolution of the international market for wheat from an emerging market structure after the repeal of the Corn Laws to a mature market characterized by efficient arbitrage after the introduction of the transatlantic telegraph and the growth of trade. Efficiency is...

The paper compares standardized simulation experiments of the Danish model ADAM and the UK Treasury model. There are both striking similarities and differences of which none seems to be related to the different scale of the two economies. Both models have significant crowding-out effects in a...

According to the favorite-longshot bias observed in parimutuel betting, the final distribution of bets overestimates the winning chance of longshots. This paper proposes an explanation of this bias based on late betting by small privately informed bettors. These bettors have an incentive to...

Economic historians have stressed that income convergence was a key feature of the 'OECD-club' and that globalization was among the accelerating forces of this process in the long-run. This view has however been challenged, since it suffers from an ad hoc selection of countries. In the paper, a...