Based on the economic theory of the family, this paper constructs a model of remittances where the migrant, besides sending money to his family, also invests in his home country. The investment is looked after by a family member in return for some monetary compensation. The model focuses on two different cases: state-contingent transfers (transfers are tied to investment outcomes) and fixed tra...

The field of New Economic Geography (NEG) aims at explaining agglomeration based on increasing returns, monopolistic competition and international factor mobility. Deviating from existing approaches, this paper constructs a theoretical model based on capital market frictions. Firms compete monopolistically, but are lead by managers subject to moral hazard. Incentivizing managers is cheaper in r...

This paper investigates the impacts at the state and regional levels of policies to limit U.S. carbon dioxide (CO2) emissions. It constructs an interregional computable general equilibrium model which divides the U.S. economy into ten industries and 50 states, and simulates the effects of economywide CO2 emission taxes. The results elucidate the sources and consequences of the incidence of abat...

This paper constructs a macroeconomic model of North-South interaction where the flow of narcotics from the South to the North is restricted. Their economic effects are akin to quantitative restrictions in trade policy. Two alternative policy scenarios will be considered. One involves reducing the supply of drugs at source, accompanied by aid. Supply side restrictions have negative aggregate su...

The banking industry is subject to a wave of consolidation taking the form of mergers but also the formation of strategic partnerships. In this chapter, we present how such a partnership can be assessed using the e3value ontology. This ontology allows us to model networks of enterprises and partnerships, exchanging things of economic with each other. To adequately model strategic partnerships, ...

Guanxi has been identified as having an important influence on business behavior. This paper investigates the influence of guanxi on three elements of supply chain management: strategic purchasing, outsourcing, and supplier development. Survey data was collected from 175 companies in the electronics sector of Hong Kong. The results indicate that guanxi has a significant influence on these three...

Neuroeconomics seeks to ground economic theory in detailed neural mechanisms which are expressed mathematically and make behavioural predictions. One finding is that simple kinds of economising for life-and-death decisions (food, sex and danger) do occur in the brain as rational theories assume. Another set of findings appears to support the neural basis of constructs posited in behavioural eco...

This paper constructs a human-capital accumulation propelled endogenous growth model in which a home production sector is modeled explicitly. We con…rm …rst the basic equilibrium properties of a unique balanced-growth path, then conduct comparative statics and comparative dynamics exercises analytically. The implications of home production are explored in both the long and short runs, hence som...

This study examines optimal emission policy in a union of countries. In each country, labor is used in either production or research and development (R&D) which increases the probability of the improvement of production technology. The production of goods in any country incurs emissions that are spread all over the union. A household’s utility in any country depends positively on his personal c...