A random assignment is ordinally efficient if it is not stochastically dominated with respect to individual preferences over sure objects. When there are no private endowments, the set of ordinally efficient random assignments is characterized by the eating algorithm (Bogomolnaia and Moulin 2001). However, when there are private endowments, the main requirement is individual rationality and and...

We develop a stochastic model of electoral competition in order to study the economic and political determinants of trade policy. We model a small open economy with two tradable goods, each of which is produced using a sectorspecific factor (e.g., land and capital) and another factor that is mobile between these tradable sectors (labor); one nontradable good, which is also produced using a spec...

After reviewing the evidence for status quo maintenance (SQM), I consider how to reconcile SQM with traditional consumer theory. Behavioural economists usually let agents’ preferences change as a function of their endowments, treating the same person with different endowments as a set of distinct agents. Many properties of preferences then become immune to empirical test and it becomes impossib...

We consider two risk-averse financial agents who negotiate the price of an illiquid indivisible contingent claim in an incomplete semimartingale market environment. Under the assumption that the agents are exponential utility maximizers with non-traded random endowments, we provide necessary and sufficient conditions for negotiation to be successful, i.e., for the trade to occur. We also study ...

Does economic development depend on geographic endowments like temperate instead of tropical location, the ecological conditions shaping diseases, or an environment good for grains or certain cash crops? Or do these endowments of tropics, germs, and crops affect economic development only through institutions or policies? We test the endowment, institution, and policy views against each other us...

This paper proposes a new mechanism to solve random assignment problems in which some agents have private endowments. The new mechanism generalizes the Probabilistic Serial mechanism by letting agents benefit from the popularity of their private endowments, which is summarized by the idea of “you request my house I get your speed”. Interestingly, the same idea can also be used to deal with indi...

This article describes the key trends in development of endowments as institutional investors using example US educational 1990-2020. The paper also gives an overview world structure assets by regions and sectors. Although much research has been done on investment behaviour return endowments, there are not so many works analysing long-term endowments. study uses methods systemic comparative ana...

ONE OF THE MAIN PUZZLES in international finance is portfolio home bias: typical investors hold most of their wealth in domestic assets (despite the fact that international diversification permits a sizable reduction in risk). Serrat (2001) claims that the nontradable nature of many consumption goods explains home bias. He presents a model of a world with two countries that receive tradable and...