Inefficient Policies, Inefficient Institutions and Trade
نویسندگان
چکیده
منابع مشابه
Modeling Inefficient Institutions ∗
Many economists and social scientists have recently emphasized the importance of government policies, economic, political and legal institutions, and more broadly, the organization of society.1 There is also mounting evidence that various institutional features are indeed important for economic growth.2 Nevertheless, despite important theoretical advances, we still lack an organizational framew...
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I study an example of a competitive environment in which trade occurs in a sequential manner. In this example, a country with a stable demand may suffer from trade with a country with unstable demand, there may be too much trade, a country may import and export the same good in the same period (cross-hauling) and dumping may occur. The timing of delivery is important. When delivery occurs befor...
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This paper explores some perverse features that can emerge when social contracts are moved from a social vacuum to a setting of social interdependence. In particular we note incentives that might exist in conjunction with externality problems that yield situations in which: (1) social contracts reduce social wealth; (2) sub-global social contracts are Pareto inferior to the absence of social co...
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This paper argues that in environments that exhibit non-convexities, risk diversification by financial institutions may be socially inefficient. To this end, we study a stylized, micro-founded model in which individual banks have an incentive to hold diversified portfolios in order to minimize the likelihood of bank runs. Yet, at the same time, diversification may increase the aggregate risk fa...
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Models Traders' values and information typically consist of both private and commonvalue elements. In such environments, full allocative efficiency is impossible when the private rate of information substitution differs from the social rate (Jehiel and Moldovanu, 2001). We link this impossibility result to a failure of the efficient market hypothesis, which states that prices adequately reflect...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2006
ISSN: 1556-5068
DOI: 10.2139/ssrn.949436