Viewed from a global perspective, trade propagates but does not create risk. Trade reduces price variability for regions facing less-than-perfectly correlated random shocks and may allow risk pooling that reduces the demand for private and public insurance, whereas autarky is characterized by price, income, and utility risk. Trade may also shift the distribution of risk among households, possib...

We analyze the welfare effects of trade and migration, focusing on two-sided horizontal heterogeneity among workers firms. Horizontal (skill-type) generates monopsonistic labor markets as well within-firm wage inequality an endogenous quality worker–firm matches. In a model combining worker with monopolistic competition goods markets, liberalization causes firm exit which raises markdowns worse...

Abstract International environmental agreements have been met with the reluctance of some national authorities to accept general commitments aimed at reducing greenhouse gas emissions. While acknowledging crucial significance climate change process, politicians and regulators in countries argued that pollution measures would a negative impact on their domestic welfare. This article uses standar...

We develop a two-country, two-sector model of trade where the only difference between the two countries is their distribution of human capital endowments. We show that even if the two countries have identical aggregate human capital endowments the pattern of trade depends on the properties of the two human capital distributions. We also show that the two distributions of endowments also complet...

This paper builds a small-open-economy, non-scale-growth model with negative population growth and investigates the relationship between trade patterns and per capita consumption growth. Under free trade, if the population growth rate is negative and its absolute value is small, the home country becomes an agricultural country. Then, the long-run growth rate of per capita consumption is positiv...

A recurring argument in the global debate is that climate deterioration is likely to make social conflicts over diminishing natural resources more common in the future. The exact mechanism behind such a development has so far not been successfully characterized in the literature. In this paper, we present a general model of a community populated by farmers and herders who can either divide up l...

Finding out that a SAT problem instance F is unsatisfiable is not enough for applications, where good reasons are needed for explaining the inconsistency (so that for example the inconsistency may be repaired). Previous attempts of finding such good reasons focused on finding some minimally unsatisfiable sub-clause-set F’ of F, which in general suffers from the non-uniqueness of F’ (and thus it...

In the 1970s, experimental economics split from social psychology by embracing rational choice and equilibrium methods. Behavioral economics has recently narrowed the divide, to the dismay of some. The present paper argues that evolutionary dynamics provides a framework which unifies the best features of social psychology with equilibrium and rational choice. Ongoing research in cheating in mar...

economic growth and development of market, stock exchange and related variables are among components which influence on business, economic activities and management of society. financial repression is among economic variables greatly influencing on financial market specifically capital market and economic growth and development; so that, this concept caused to publish financial growth and devel...

We address explicitly the issue of risk in the theory of the firm. To that end, we present a model in which the shareholders’ portfolio selection of assets and the decisions of the firm are jointly determined through the market process. The model allows to study the role of markets and prices on the type of risky activities undertaken by a firm and the allocation of random profit among sharehol...