Combining depth, length and breadth, the Great Recession is the worst economic downturn that the US economy has suffered since the Great Depression. Among other things, the recession reduced household income, caused significant changes in food prices and increased consumer uncertainties. These...

This paper presents a general equilibrium analysis of economic efficiency under externalities, transaction costs and non-convexity. It applies to market exchange as well as contractual arrangements. We show that the Coase theorem continues to hold under general conditions: the efficient...

American economic problems consist of both short-term, or cyclical problems and long-term, structural problems. The supply-side policies of the 1980s have exacerbated our structural problems and severely constrained opportunities to use fiscal policy to get out of recession. Both cyclical and...