When firms in the same industry located in different regions or countries experience shocks to production costs in their respective industries that are imperfectly correlated, arbitrage opportunities automatically lead to trade. Trade can either stabilize or destabilize the price faced by...

In developing economies firm strategy is directed more often at governments than at other competing firms. As an initial step towards modeling such interactions, this paper considers a situation where government confronts a monopoly. The latter chooses price and maximizes profit, and the former...

This paper exploits a well accepted inefficiency that arises out of Pay-As-You-Go (PAYG) pensions itself to phase it out in a Pareto way. The positive externality of having children in a PAYG pension system is carefully utilized to phase the pensions out. In a model with endogenous fertility the...

In presence of imperfections in education loan market, the standard policy response of intervening solely on education front, funded through taxes and transfers, necessarily hurts the initial working population. The literature suggests compensating them via pay-as-you-go pensions as a possible...