We propose an objective for the firm in a model of production economies extending over time under uncertainty and with incomplete markets. We derive the objective of the firm from the assumption of initial-shareholders efficiency. Each shareholder is assumed to communicate to the firm her...

The market position of less educated workers is weak and deteriorating, both in the US and in Europe, due in particular to technological development and growing competition from low-wage economies. In continental Europe, the resistance of relative wages of less-skilled workers has been an...

It is argued that the aggregate fiscal stance of EC 12 is a significant determinant of output and employment in the Community, it deserves more attention, and a different attention, than it received in Maastricht. The significance of aggregate demand is illustrated by the econometric evidence...

In this paper the existence of unemployment is partly explained as being the result of coordination failures. This is achieved by considering a standard general equilibrium model and splitting the set of commodities in two groups. The first group contains commodities like gold. The prices of...

Modern game theory was born in 1928, when John von Neumann published his Minimax Theorem.This theorem ascribes to all two-person zero-sum games a value - what rational players may expect - and optimal strategies? how they should play to achieve that expectation.Sev entyseven years later,...