The question addressed in this article is how the fairness of the global trading system as embodied in the GATT/WTO is to be assessed. Opinions about what constitutes fairness differ widely, and there is surely no incontrovertible yardstick. But it should be possible to be clearer about the criteria that are appropriate and what they mean in more operational terms. Why fairness is a condition o...

We model insurance design in the Medicare prescription drug coverage market and show that strategic private insurer incentives impose a large fiscal externality on the traditional Medicare program. Using policy induced variation in subsidies, we document that plans that cover medical expenses spend more on drugs than plans that are only responsible for prescription drug spending, consistent wit...

How do firms finance large cash flow requirements? We examine this in the context of firms that are subject to substantial cash flow requirements. We find that trade credit, inventory and cash stock reductions are all important in the short term for mild requirements. Larger and longer cash flow shortages give rise to more equity than debt finance. After the shocks, firms gradually adjust their...

Trading volume of infinitely lived securities, such as equity, is generically zero in Lucas asset-pricing models with heterogeneous agents. More generally, the end-of-period portfolio of all securities is constant over time and states in the generic economy. General equilibrium restrictions rule out trading of equity after an initial period. This result contrasts the prediction of portfolio all...

we describe a simple model that fits well with iranian economy, and extends a methodology which chary at el. (2007) demonstrated. in addition to four traditional wedges, we introduce additional trade wedge. we then evaluate the contribution of these wedges to the fluctuations in iran during last three years. because of international sanction, trading cost increases, and firms have difficulty to...

â â â  â â  the paper uses economic and energy data analysis and econometric modeling to study the prospects and challenges of korea’s 2003 fta roadmap (mofat 2013) in the form of potential comprehensive partnerships with its major trade and energy partners. it first reviews korea’s international economic and trade relations in recent years with a focus on its major merchandise export desti...

on one hand, iran due to the low annual rainfall and lack of appropriate spatial and temporal distribution in precipitation is considered as an arid and semi-arid country experiencing stress and water scarcity; on the other hand, 90% of annual water consumption has been allocated to agriculture sector in iran and efficiency and productivity of water consumption do not enjoy favorable status in ...