In this paper we study the welfare effect of a monopoly innovation. Unlike many partial equilibrium models carried out in previous studies, general equilibrium models with non-price-taking behavior are constructed and analyzed in greater detail. We discover that technical innovation carried out by a monopolist could significantly increase the social welfare. We conclude that, in general, the cr...

In this paper we present a model of implementation based on the idea that agents renegotiate unfeasible allocations. We characterize the maximal set of Social Choice Correspondences that can be implemented in Nash Equilibrium with a class of renegotiation functions that do not reward agents for unfeasibilities. This result is used to study the possibility of implementing the Walrasian Correspon...

At arbitrary prices of commodities and assets, fix-price equilibria exist under weak assumptions: endowments need not satisfy an interiority condition, utility functions need only satisfy a very weak monotonicity requirement, and the asset return matrix allows for redundant assets. Prices of assets may permit arbitrage. At equilibrium, though restricted through endogenously determined trading c...

The paper studies the dynamic macroeconomic and welfare effects of tax policy in the context of an overlapping-generations model of the Yaari-Blanchard type for a closed economy. The model is extended to allow for endogenous labor supply and three tax instruments—namely, a capital tax, labor income tax, and consumption tax. It is shown that labor taxes increase welfare of old generations wherea...

We quantify the role of population aging in structural transformation process. Household-level data from United States show that fraction expenditures devoted to services increases with household age. use a shift-share decomposition and quantitative model US accounted for about fifth observed increase service share consumption between 1982 2016. The contribution rise is same size as real income...

I estimate an extended version of the incomplete markets consumption model allowing for heterogeneity in discount factors, nonseparable preferences for food and other nondurables, liquidity constraints, and precautionary savings. I find statistical support for this model, especially for the non-separability of preferences for food and other nondurables. JEL D12, D91, E21

The ‘rational addiction’ model of cigarette smoking downplays the influence of social factors and biological dependency. This paper develops a simple model of these factors and presents some causality tests that indicate that nicotine content ‘causes’ smoking with the direction being negative. ©2000 Elsevier Science B.V. All rights reserved. JEL classification: D12; J12

The existence of a Paretian and finitely anonymous ordering in the set of infinite utility streams implies the existence of a non-Ramsey set (a nonconstructive object whose existence requires the axiom of choice). Therefore, each Paretian and finitely anonymous quasi-ordering either is incomplete or does not have an explicit description. Hence, the possibility results of Svensson (1980) and of ...

This paper estimates how overall consumer spending responds to changes in gasoline prices. It uses the differential impact across consumers of sharp drop prices 2014 for identification. estimation strategy is implemented using comprehensive, high-frequency, transaction-level data a large panel individuals. The average estimated marginal propensity consume (MPC) out unanticipated, permanent shoc...

We use detailed data from a large retail panel to study the effect of participation in Supplemental Nutrition Assistance Program (SNAP) on composition and nutrient content foods purchased for at-home consumption. find that SNAP is small relative cross-sectional variation most outcomes we consider. Estimates model relating household’s food purchases current level spending imply closing gap betwe...