Top Trading Cycles is widely regarded as the preferred method of assigning students to schools when the designer values efficiency over fairness. However, Top Trading Cycles has an undesirable feature when objects may be assigned to more than one agent as is the case in the school choice problem. If agent i’s most preferred object a has a capacity of qa, and i has one of the qa highest prioriti...

In the Trade Cycle, Hicks introduced the idea that endogenous fluctuations could be coupled with a growth process via nonlinear processes. To argue for this hypothesis, Hicks used a piecewise-linear model. This paper shows the need for a reinterpretation of Hicks’ contribution in the light of a more careful mathematical investigation. In particular, it will be shown that only one bound is neede...

We propose and analyze a two-country model of endogenous innovation cycles. In autarky, innovation fluctuations in the two countries are decoupled. As the trade cost falls and intra-industry trade rises, they become synchronized. This is because globalization leads to the alignment of innovation incentives across firms based in different countries, as they operate in the increasingly global (he...

This paper investigates the interlinkage in the business cycles of large-country economies in a free-trade equilibrium. We consider a two-country, two-good, two-factor general equilibrium model with Cobb-Douglas technologies and linear preferences. We also assume decreasing returns in both sectors. We first identify the determinants of each country’s accumulation pattern in autarky equilibrium,...