Recent studies suggest psychological differences between conservatives and liberals, including that conservatives are more overconfident. We use a behavioral political economy model to show that while this is undoubtedly true for election years in the current era, there is no reason to believe that conservative ideologies are intrinsically linked to overconfidence. Indeed, it appears that in 19...

make or buy decision is one of the main areas of decision making for managers. transaction cost economics (tce), as an influential economic approach to the theory of the firm, tries to put forward a theoretical framework for this important decision. from tce perspective, the greater the asset specificity, the more the behavioral uncertainty and the more the transaction frequency, the more will ...

In the discussions of trading, unemployment and income distribution inequality, this question is raised by economists that in economic development of developing and developed countries, which policy is necessary in the first stage. Is trading liberalization the pre-requirement of transfer from a close economy to a relative open economy and is it necessary for the developed economy compared to o...

This paper compares two types of monetary policy: price-level targeting and inflation targeting. It reviews recent arguments that favour price-level targeting, and examines how certain factors, such as the nature of the shocks affecting the economy and the degree to which agents are forwardlooking, bear upon the arguments. The paper then extends the analysis to a small open economy such as Cana...

This paper compares two approaches to the measurement of the resources devoted to the organisational task in the economy, i.e. Porat and Rubin’s ‘Information Economy’ and Wallis and North’s ‘Transaction Sector’. While there have been a number of studies using the information economy approach, it seems to have made way for a narrower focus on the information technology economy in recent years. T...

Evidence on the portfolio holdings and transaction patterns of households suggests that the burden of inflation is not evenly distributed. We build a monetary growth model consistent with key features of cross-sectional household data and use this framework to study the distributional impact of inflation. At the aggregate level, our model economy behaves similar to standard monetary growth mode...

This paper establishes that the profit-seeking activities of private intermediaries can ensure Pareto efficiency in the standard pure-exchange monetary overlapping generations economy without the need for government monetary or fiscal policy intervention. Moreover, these profit-seeking activities are shown to rule out all aperiodic and kperiodic cycles for k greater than 2. Contrary to much rec...

This paper assesses the economic impacts of the Swiss climate policy formulated under the Kyoto Protocol; the impacts on the carbon price, the welfare cost, and trade effects are examined. Our analysis is based on a multi-sectoral and multi-regional, computable general equilibrium (CGE) model of the world economy (GEMINI-E3) which includes a representation of the Swiss economy. The model is use...

Contrary to the implicit assumption motivating much of the work on the political economy of protection, antidumping, along with other forms of administered protection, is the primary form of discretionary protection for most countries. A sizable literature on the political economy of antidumping has developed in the last two decades that is distinctive in its explicit focus on institutional asp...

This paper presents a model of industrialization through rural–urban interdependence. It shows how an economy with a low cost share of industrial inputs in agricultural production and a low expenditure share of manufactured goods, together with a limited variety of industrial inputs, can be caught in a low development trap. By escaping from the trap the economy moves toward more roundabout meth...