fluctuation of exchange rate and its deviation from equilibrium path are one of the most important macroeconomic variables that is affected by different side of economical sectors. whereas, the exchange rate fluctuation and its deviation from equilibrium path haven’t the same and similar effects on all of the economical sectors, and considering eminent important of industrial development on the...

In this paper we study the performance of an economic environment that can support specialization if the participants implement and develop some system of exchange. We define a closed economy in which the participants must discover the ability to exchange, implement it, and ascertain what they are comparatively advantaged in producing. Many people demonstrate the ability to find comparative adv...

Several papers have recently underlined the relationship between institutional quality and international trade. Institutions are in charge of the enforcement of contracts: good institutions are those which punish the part that breaks the contract, and implement this activity with a high probability of success. Goods can be more or less complex, according to the number of intermediate inputs nee...

We report results from a laboratory experiment that implements a consumption-based dynamic general equilibrium model of asset pricing. This work-horse model of the macrofinance literature posits that agents buy and sell assets for the purpose of intertemporally smoothing consumption, and that asset prices are determined by individual risk and time preferences as well as the distribution of inco...

In this paper, we consider multi-object auctions in which each bidder submits a pair of a subset of objects and his purchase price for the set. The seller solves the assignment problem of objects to maximize his revenue, and decides the winning bidders who can purchase their reporting subset for the prices given. We analyze this auction on the assumption that each bidder has one special subset ...

We study information transmission in large interim quasilinear economies using the theory of the core. We concentrate on the core with respect to equilibrium blocking, a core notion in which information is transmitted endogenously within coalitions, as blocking can be understood as an equilibrium of a communication mechanism used by players in coalitions. We consider independent, ex-post and si...

An “investment bubble” is a period of “excessive, and predictably unprofitable, investment”(DeMarzo, Kaniel and Kremer, 2007, p.737). Such bubbles most often accompany the arrival of some new technology, such as the tech stock boom and bust of the late 1990’s and early 2000’s. We provide a rational explanation for investment bubbles based on the dynamics of learning in highly uncertain environm...