We build up a simple Ricardian trade model with imperfection in the market for credit which affects the pattern of production. Workers/entrepreneurs are endowed with different levels “capital†and need to borrow to produce the credit intensive good. We argue that in such a framework...

Queuing mechanisms are commonly used in developing countries and in transition economies to allocate goods characterized by excess demand to citizens. Bribery and favoritism frequently accompany the use of such queuing mechanisms. Therefore, we first analyze a queuing model of resource...

We construct a dynamic general equilibrium model of pollution and study in a holistic way the environmental policies, whereby government sets up emission caps and sells emission permits at a competitive price which can be viewed as an emission tax. Then, it uses the collected tax revenues to...

This article analyses the welfare implications of the customs unions in the presence of multinational corporations for a less than fully employed small open economy. The traditional two-sector model, with a specific factor for the multinational corporation, is employed for this purpose. This...

Recently, Batabyal (2005) has analyzed a game model of dowry determination in which a mediator plays a key role. Batabyal's analysis shows that the equilibrium dowry offers from the bride and the groom optimally trade off the desire to make an assertive offer with the likelihood that this offer...

We provide an analysis of the impact of migration on the skilled- unskilled wage gap. In particular, we show the possibility of a rise in the wage gap following the migration of skilled (unskilled ) labor.

We construct a model of exchange rate target zones that allows the stochastic process, with a closed-form general solution, to include the possibility of lagged response of fundamentals.

We construct a model whereby stock exchanges take a new role as an information intermediary, notably absent in their roles. We show that exchanges differentiate themselves at subgame perfect equilibrium and will not race to the top or to the bottom.