Extending Ireland’s (1994) model, this paper analyzes an international economy where cash or credit can be used for payment. Foreign trade credit is more costly than its domestic analog. A depreciation of the real exchange rate is associated with an external surplus and a reduced share of imports purchased with credit. Economic growth slows when foreign trade credit becomes the predominant mean...

one of the necessary preconditions to the establishment and stability of optimal currency area is the homogeneity of the economic structure in member states. but place with eurozone currency crisis, the question arises whether the economic structure of the eurozone countries were homogeneous? accordingly, this study by using an econometrics model and estimating it by panel data method, has been...

Along the global trend of economic development, it is often observed rapid industrial transformation accompanied by contitual rural-urban migration. In many developing countries there are yet abundant supplies of “surplus labor.”We construct a small open, dynamic framework to examine how the existence of this large supply of rural, unskilled labor a¤ects trade, urbanization, capital accumulatio...

This paper approaches first and second-price sealed-bid auctions as initial stages in a multi-stage game. In this setting, bidding reveals information about the bidder’s valuation, and could impact payoffs and revenues in future stages. This formulation provides a quantitative privacy model, where privacy cost is the economic disadvantage, to the bidder, of the information leakage. The paper st...

The present paper deals with a surplus production model of Verhulst-Schaefer for Bangladesh shrimp fishery to develop a static as a well as dynamic framework to investigate the optimal utilization of the resource, sustainability properties of the stock and the resource rent earned from the resource. The basic objective of this paper is to provide the way through which long run sustainability ca...

This study incorporates Zakat into a simple macroeconomic model of an Islamic economy and analyzes the role of Zakat in the national income determination. The reduced form aggregate consumption function suggests that the determinants of consumption are: Zakat expenditure, taxes, income, and asset holdings of individuals. Zakat could be used as a counter-cyclical policy through the discretionary...

In this paper, we consider a local public goods environment. The agents are faced with the task of providing local public goods that will benefit some or all of them. We propose a bidding mechanism whereby agents bid for the right to decide upon the organization of the economic activity. The subgame perfect equilibria of the mechanism generate efficient outcomes. We also show how to adapt the m...

We show information technology (in short IT) caused rising monopoly power and rising income and wealth inequality since the 1970's. Our reasoning proceeds in four steps. step 1 examines surplus wealth the difference between firm’s wealth (equity and debt) and capital employed. Surplus wealth rose from -$0.59 Trillion in 1974 to $24 Trillion in 2015 which is 82% of total stock market value, refl...

Recently, Albrecher and his coauthors have published a series of papers on the ruin probability of the Lévy insurance model under the so-called loss-carry-forward taxation, meaning that taxes are paid at a certain …xed rate immediately when the surplus of the company is at a running maximum. In this paper we assume periodic taxation under which the company pays tax at a …xed rate on its net inc...