The main purpose of this paper is to show that David Gale’s result (1960, Lemma 9.3 on sensitivity in linear programming) is not generally valid. In this lemma, additional assumptions, that are instead required, are not made. We give some correct versions of the above mentioned lemma, and with these an elementary proof of the Gale-Samuelson nonsubstitution theorem.

The purpose of this paper is to investigate how well contemporary exchange rate theories explain fluctuations in rates emerging economies, before and after the Global Financial Crisis (GFC). As an example, EUR/PLN 1999–2015 was selected as currency pair that most liquid region; it had a stable regime given period. whole analysis performed within linear vector error correction (VEC) model framew...

This paper investigates to what extent the seminal contribution of Samuelson (1954) hasbeen or not incorporated by the theories of general equilibrium and mechanism designin their analysis of optimal public good provision and more generally of optimal publicpolicy. Our conclusion is that, far from taking up the challenges raised by Samuelson’scontribution, both paradigms lead to...

1. Many friends and colleagues have contributed to our research in various ways throughout time. In particular we acknowledge our discussant, Dr. A. Lago, President of ASCE; Mr. J. F. Alonso, also of ASCE, who facilitated us some data; Dr. C. Mesa-Lago, of U. Pittsburgh; Mr. S. Lippe, of Radio Marti; Dr. J. Clark, of Miami Dade CC.; Messrs. T. Bonn and L. Styles, of SUNY-Cortland, who facilitat...

We consider a repeated interaction between a long-run player and a sequence of short-run players, in which the long-run player may either be rational or may be a mechanical type who plays the same (possibly mixed) action in every stage game. We depart from the classic model, exemplified by Fudenberg and Levine [4, 5], in assuming that the short-run players make inferences by analogical reasonin...

We explore the interaction between evolutionary stability and lexicographic preferences. To do so, we define a limit Nash equilibrium for a lexicographic game as the limit of Nash equilibria of nearby games with continuous preferences. Nash equilibria of lexicographic games are limit Nash equilibria, but not conversely. Modified evolutionarily stable strategies (Binmore and Samuelson, 1992. J. ...

In the 1990s, the American executive organized financial rescues for Mexico and several Asian economies. These rescues were controversial in Congress, where members voted repeatedly to reduce or eliminate the executive’s freedom to engage in them. I analyze these roll calls with an eye toward explaining who opposes and who supports international financial rescues. I argue that the interests of ...

Musgrave, A. 1981. ‘Unreal assumptions’ in economic theory: the F-Twist untwisted. Kyklos 34: 377–387. Nagel, E. 1963. Assumptions in economic theory. American Economic Review (Papers and Proceedings) 53: 211–219. Samuelson, P. 1938. A note on the pure theory of consumer’s behaviour. Economica [NS] 5: 61–71. Harrison, G. W. 2008a. Neuroeconomics: a critical reconsideration. Economics and Philos...

The papers in this issue deal with the transformation from public finance to economics at a theoretical and philosophical level mid-twentieth century. Our introduction situates these within their intellectual context. To do so, we provide broad outline of trajectory field beginning welfare economics. Acknowledging structuring role Richard Musgrave James Buchanan for field, highlight key also pl...

Two basic properties concerning the dynamic behavior of competitive equilibria of exchange economies with complete markets are derived essentially from the fact that the Walras correspondence has no knots. I. One can view the work of Debreu, E. and H. Dierker, Balasko and others that introduced the notions of regular economy and regular equilibrium, and studied the local uniqueness and other mo...