We consider an economy in which agents have a preference relation over groups and only over groups. In the economy, each individuals strategy set is a list of those groups containing himself that he would like to form. It is assumed that proposing a group can be made by any single agent, without consent of the other agents involved, therefore in choosing a strategy, an agent is not constrained ...

The negative effects of a high level of government debt are now generally acknowledged. The extensive borrowing of past years has enlarged the share of interest payments in government spending, thus restricting the scope for future fiscal policy action. There is very little prospect of being able to initiate economic recovery by way of expansive fiscal policy. High deficits and rising debt rati...

We examine antitrust rules in a two county general equilibrium trade model, contrasting national and multilateral (cooperative) determination of competition policy, exploring the properties of policy equilibrium. It is not imperfect competition, but variation in competitive stance between sectors that matters for trading partners. Beggar-thy-neighbor competition policies relate to countries’ co...

Providing the solution to the debt and deficit problems of developed economies is too big a task. I doubt it is possible to offer general recipes that can apply to all industrial countries, despite the surprisingly common origins of the deficit problems documented by the Mussa and Masson paper in this conference. For example, while in most countries accumulated social security liabilities repre...

Since the Cournot-Nash and Arrow-Debreu-McKenzie contributions to equilibrium theory with complete information, two main advances in equilibrium theory with differential information appeared. The first one is by Harsanyi (1967), who introduces differential information into the Cournot-Nash model, and the second one is by Radner (1968), who introduces differential information into the Arrow-Debr...

This research argues that the rapid expansion of international trade in the second phase of the industrial revolution has played a significant role in the timing of demographic transitions across countries and has thereby been a major determinant of the distribution of world population and a prime cause of the Great Divergence in income per capita across countries in the last two centuries. The...

Sunspot equilibrium and lottery equilibrium are two stochastic solution concepts for nonstochastic economies. We compare these concepts in a class of completely finite, (possibly) nonconvex exchange economies with perfect markets, which requires extending the lottery model to the finite case. Every equilibrium allocation of our lottery model is also a sunspot equilibrium allocation. The convers...

This paper aims to address two key issues in the agricultural economics of transition economies: (i) what do we understand about the process of agricultural transformation in transition economies with respect to the distribution of collective and state farm assets and why is this process so important; and (ii) why the Joint Stock Company model of agricultural privatisation in transition economi...

We examine the determinants of financial development in Asia and the Pacific from 1995 to 2011. To do so, we apply the dynamic generalized method of moments to a panel data set of 26 economies in the region. We find that better governance and institutional quality foster financial development in developing economies while economic growth and trade openness are key determinants of financial dept...

CAPM is often the method of choice among practioners for estimating the cost of equity for investment projects in developed economies. But for investment projects in emerging economies, CAPM tends to give estimates that are considered too low by experienced financial managers. Sometimes, CAPM estimates of the cost of equity for projects in emerging markets are even lower than those for comparab...