Optimal complementary auctions

This paper considers the situation where two products are sold by the same seller, but to disjoint sets of potential buyers. Externalities may arise from each market outcome to the other. The paper examines the nature of the seller's optimal mechanism, and, for example in the case of positive externalities, it is shown that the allocation decision in either market depends on the highest types in both markets. The optimal mechanism can be implemented by an indirect mechanism that essentially charges winning bidders for the value of their externalities. The analysis is applied to the sale of public sector franchises including exploration and development rights for oil and gas tracts

Financial evolution and the long-run behavior of velocity : new evidence from U.S. regional data

Innovations in the private financial sector influence the income velocity of money in an economy over the entire course of its development. In the early stages of growth, increased monetization, as manifested by the spread of the banking system, causes velocity to fall. Later, the emergence of nonbank financial intermediaries causes velocity to rise. Evidence of these patterns is found in regional demand deposit data from the United States.Money ; Regional economics

Commentary on "Monetary policy as equilibrium selection"

Monetary policy ; Equilibrium (Economics)

Price stability under long-run monetary targeting

Monetary policy ; Prices

Using the permanent income hypothesis for forecasting

Forecasting ; Income ; Saving and investment

Two perspectives on growth and taxes

Economic development ; Taxation

Implementing the Friedman rule

In cash-in-advance models, necessary and sufficient conditions for the existence of an equilibrium with zero nominal interest rates and Pareto-optimal allocations restrict only the very long-run, or asymptotic, behavior of the money supply. When these asymptotic conditions are satisfied, they leave the central bank with a great deal of flexibility to manage the money supply over any finite horizon. But what happens when these asymptotic conditions fail to hold? This paper shows that the central bank can still implement the Friedman rule if its actions are appropriately constrained in the short run.Monetary policy

Financial evolution and the long-run behavior of velocity : new evidence from U.S. regional data

Innovations in the private financial sector influence the income velocity of money in an economy over the entire course of its development. In the early stages of growth, increased monetization, as manifested by the spread of the banking system, causes velocity to fall. Later, the emergence of nonbank financial intermediaries causes velocity to rise. Evidence of these patterns is found in regional demand deposit data from the United States.Money ; Regional economics

Long-term interest rates and inflation: a Fisherian approach

Inflation (Finance) ; Interest rates

On Cournot-Nash equilibria with exogenous uncertainty

A large body of literature has accumulated which examines how the optimal solution of an agent maximizing the expectation of a real-valued function, depending on a random parameterp and the agent's behaviorx, reacts to perturbations in the first and second moments ofp. Here, by an approximation valid for small uncertainty, we allow many agents and consider their behavior in a Cournot-Nash equilibrium. We also allowp to depend on the behaviors of the participating agents. We apply the analysis to two models, one of a Cournot oligopoly, the other of a cooperative of individuals where there is uncertainty in the return to communal work