This paper studies a welfare maximization problem with heterogeneous agents. A social planner designs a menu of choices for agents who misperceive either the properties of options or their own preferences. When agents misperceive the true properties of alternatives, it is optimal to limit a menu...

The Social Security Problem is one of real resources and not finance. Neither privatization nor any other (strictly) financial change can provide a solution. If, by some (unlikely) chance, investment returns were high enough, privatization might help retirees, but only at the expense of those...

This paper compares the distributional effects of price cap and lump sum transfer policies to aid the affordability of subsistence electricity consumption. A lump sum transfer is more progressive than a comparable price cap on all units of electricity. We identify conditions under which these...

While ongoing analysis will shed light on why inflation has been so contagious, several factors are likely at play and continue to pose risks to inflation, which although declining in 2023 appears to have left the bitter effects of the exchange rate behind unbalanced exchange rate.While the Bank...

Comparing the GDP growth rates of different regions can play a role in asset allocation, helping investment decisions in fast-growing regional economies.However, experts clarify on the other hand, that beyond the foreign investments that have entered Albania, the lack of diversification of...

The role of a person's identity and sense of integration into society as instruments

The reorientation occurred in the socioeconomic, politic and institutional development of the Latin American and Caribbean countries, since 80's decade, provoke significant transformations in the regional rural spaces. The socioeconomic bipolarization is one of the most remarkable phenomena in...

Models of labour market equilibrium where forward-looking decisions maximize both profits and labour income on a risk-neutral basis, offer valuable insights into the effects of employment protection legislation. Since risk-neutral behaviour in the labour market presumes perfect insurance,...