In this working paper the regional impacts of road pricing on cars are analysed taking into account externality effects from transportation on wages and productivity. In the paper the direct impacts from changes in transport costs on level of wages and productivity (=direct externality effects) have been estimated. The direct and derived impacts of road pricing have been analysed with AKF's loc...

This paper presents a simple general equilibrium model of economic performance through time. The model incorporates 4 main determinants of economic performance: technology, capital investment, the division of labor and institutions. It demonstrates that growth is not automatic even with technological progress. In order to maintain economic growth, it is important to continuously implement new t...

B Omitted Proofs 2 B.1 How to make individual and aggregate distributions coincide . . . . . . . . . . . . . 2 B.2 Proof of Lemma 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 B.3 Proof of Lemma A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 B.4 Proof of Lemma A2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...

The presence of externality, indivisibility, and uncertainty destroys the market's ability to coordinate production. Entrepreneurs rise to organize production by assuming a part of the allocative role traditionally reserved exclusively to the market. Assume that there are three classes of entrepreneurs: profit-oriented, nonprofit oriented and public entrepreneurs. These entrepreneurs cooperate ...

This paper introduces sector-specific externalities in the Heckscher–Ohlin twocountry dynamic general equilibrium model to show that indeterminacy of the equilibrium path in the world market can occur. Under certain conditions in terms of factor intensities, there are multiple equilibrium paths from the same initial distribution of capital in the world market, and the distribution of capital in...

Using a general multi-country equilibrium model with a multinational enterprise, this paper investigates the efficiency properties of separate accounting and formula apportionment. If governments are large, i.e. take into account the effect of their statutory tax rate on the interest rate, and maximize tax revenues, tax rates under separate accounting may be inefficiently high while tax rates u...