One of the most effective parameters in economics of open-pit mines is the pit slope angle, so that the slope angle more than the optimum value increases the probability of a large failure in the pit wall and the slope angle less than the optimum value leads to increasing stripping ratio and reducing net present value of mine. Therefore, in this paper, considering the limit equilibrium methods ...

We consider a general communication model with language barriers, and study whether language barriers harm welfare in communication. Contrary to the negative result in Blume and Board (2013), we provide two positive results. First, the negative effect of any language barriers can be completely eliminated, if we introduce a new communication protocol called N-dimensional communication. Second, e...

In an effort to circumvent the multicollinearwhere 3 = yFt, f1 = 1-y, and et is a stochastic ity problems associated with direct estimation disturbance. Implied equilibrium factor share, of the aggregate agricultural production funcPo/(l-fiP), was postulated to change from tion, many economists have used indirect estidecade to decade by inclusion of dummy varimation procedures. Because in equil...

In this paper, we investigate the effect of market power on the equilibrium path of an emission permits market in which firms can bank current permits for use in later periods. In particular, we study the market equilibrium for a large (potentially dominant) firm and a competitive fringe with rational expectations. We characterize the equilibrium solution for different permits allocations. We f...

Transition economies have an initial condition of high human capital relative to GDP per capita. But they will not necessarily realize their latent high growth potential. In the model, at a good equilibrium a large number of children of well-educated parents take advantage of their family backgrounds and invest substantially in their own human capital. At a bad equilibrium, past educational ach...

This thick volume brings together 58 short articles or entries on the theme of diagrammatic exposition in economics. The book is divided into three parts, and is opened by a significant introduction of about twenty pages in which the two editors provide an overview of the general spirit in which the book was conceived and produced, as well as a short history of the use of figures and diagrams i...

This paper considers the negotiation and enforcement of trade agreements in an environment where countries negotiate repeatedly through time. The idea that countries choose trade policies repeatedly through time has been widely applied in the literature on trade agreements, and has motivated the use of subgame perfect equilibrium as a mechanism for enforcing agreements. We argue that this same ...

This paper derives the Nash-equilibrium degrees of commitment to a partnership where lack of full commitment fuels suspicion and increases potential losses for partners. JEL classification: C72, D01, D80 Corresponding Author: Amnon Levy, Economics Discipline, School of Economics and Information Systems, University of Wollongong, Wollongong, NSW 2522, Australia. Tel: 61-2-42213658 Fax: 61-2-4221...

We discuss the existence of a pooling equilibrium in a two-period model of an insurance market with asymmetric information. We solve the model numerically. We pay particular attention to the reasons for non-existence in cases where no pooling equilibrium exists. In addition to the phenomenon of cream skimming emphasized in earlier literature, we here point to the the importance of the opposite:...