Emerging market economies, which have much of their growth ahead of them, either run or should run persistent current account deficits in order to smooth consumption intertemporally. The counterpart of these deficits is their dependence on capital inflows, wliich can suddenly stop. We make two contributions in this paper: First, we develop a quantitative global-equilibrium model of sadden stops...

In this paper we develop the regional form of Darcy’s law when the condition of large-scale mechanical equilibrium is valid. This condition occurs for many steady or quasi-steady flows of practical importance, and analytical constraints are presented which define the domain of validity for large-scale mechanical equilibrium. Given a two-region model of a heterogeneous porous medium, the intrins...

This paper explores how consumption smoothing (via borrowing and lending) works when a person cannot commit to payback a loan. We study an environment where individuals are of two types, with one type having a higher propensity to default on debt obligations. Financial intermediaries cannot directly observe a person’s type but make probabilistic assessments of it based on the person’s credit hi...

We define a concept of share equilibrium for local public good (or club) economies where individual members of the population may have preferences over the membership of their jurisdiction. A share equilibrium specifies one share index for each individual. These indices determine each individual’s cost shares in any jurisdiction that he might join. We demonstrate that the same axioms as those t...

We present a numerical simulation study of a simple monatomic Lennard-Jones liquid under shear flow, as a function of both temperature T and shear rate .gamma. By investigating different observables we find that (i) there exists a line, T(.gamma), in the (T-(.gamma)) plane that sharply marks the border between an "equilibrium" and a "shear-controlled" region for both the dynamic and the thermod...

We examined the contents of language-mediated prediction in toddlers by investigating the extent to which toddlers are sensitive to visual shape representations of upcoming words. Previous studies with adults suggest limits to the degree to which information about the visual form of a referent is predicted during language comprehension in low constraint sentences. Toddlers (30-month-olds) heard...

This note studies the choice of tax structure in a majority voting model with tax competition. Regions may tax mobile capital or immobile labor. Individuals differ with respect to their relative endowments of labor and capital. Even though a lump sum tax is available, the equilibrium capital tax in a jurisdiction may be positive. In a symmetric equilibrium, this will be true if the median capit...

This paper analyses a two-sidedmarket in which two platforms compete against each other. One side, the advertisers, exerts a negative externality on the other side, the users. It is shown that if platforms can charge advertisers only, a higher degree of competition for users can lead to higher profits because competition on the advertisers’ side is reduced. If platforms can charge users as well...

We show that loyalty discounts create an externality among buyers even without economies of scale or downstream competition, and whether or not buyers make any commitment. Each buyer who signs a loyalty discount contract softens competition and raises prices for all buyers. We prove that, provided the entrant’s cost advantage is not too large, with enough buyers, this externality implies that i...

A theorem prover f o r part of ar i thmet ic in described which proves theorems by represent ing them in the form of a diagram or network. The nodes of t h i s network represent ' i d e a l i n t e g e r s ' , i . e . objects which have a l l the propert ies of in tegers , without being any p a r t i cular in toger . The l i nks in the network represent re la t ionsh ips between ' i dea l i n t...