Inside and Outside Money, Gains to Trade, and IS-LM

We build a one-period general equilibrium model with money. Equilibrium exists, and fiat money has positive value, as long as the ratio of outside money to inside money is less than the gains to trade available at autarky. We show that the nominal effects of government fiscal and monetary policy can be completely described by a diagram identical in form to the IS-LM curves introduced by Hicks to describe Keynes' general theory. IS-LM analysis is thus not incompatible with full market clearing, multiple commodities, and heterogeneous households. We show that as the government deficit approaches a finite threshold, hyperinflation sets in (prices converge to infinity and real trade collapses). If the government surplus is too large, the economy enters a liquidity trap in which nominal GNP sinks and monetary policy is ineffectual.

Insurance Contracts Designed by Competitive Pooling

We build a model of competitive pooling and show how insurance contracts emerge in equilibrium, designed by the invisible hand of perfect competition. When pools are exclusive, we obtain a unique separating equilibrium. When pools are not exclusive but seniority is recognized, we obtain a different unique equilibrium: the pivotal primary-secondary equilibrium. Here reliable and unreliable households take out a common primary insurance up to its maximum limit, and then unreliable households take out further secondary insurance.

Default and Punishment in General Equilibrium

We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment. The equilibrating variables include expected delivery rates, along with the usual prices of assets and commodities. By reinterpreting the variables, our model encompasses a broad range of moral hazard, adverse selection, and signalling phenomena (including the Akerlof lemons model and Rothschild--Stiglitz insurance model) in a general equilibrium framework. We impose a condition on the expected delivery rates for untraded assets that is similar to the trembling hand refinements used in game theory. Despite earlier claims about the nonexistence of equilibrium with adverse selection, we show that equilibrium always exists, even with exclusivity constraints on asset sales, and transactions-liquidity costs or information-evaluation costs for asset trade. We show that more lenient punishment which encourages default may be Pareto improving because it allows for better risk spreading. We also show that default opens the door to a theory of endogenous assets.

On the categories of L-Valued and Q-Valued 6 deterministic fuzzy automata

Automata and languages have been studied in the context of different lattice structures by several authors. This paper is toward the categorical study of deterministic lattice-valued (L-valued) fuzzy automata and deterministic quantale-valued (Q-valued) fuzzy automata. The existence of initial and final objects in the subcategory of category of deterministic lattice-valued fuzzy automata is shown. We also show that there is an adjunction between the category of deterministic lattice-valued and quantale-valued fuzzy automata

From Nash to Walras via Shapley-Shubik

We derive the existence of a Walras equilibrium directly from Nash's theorem on noncooperative games. No price player is involved, nor are generalized games. Instead we use a variant of the ShapleyŠShubik trading-post game.

Potential use of cyanobacterial species in bioremediation of industrial effluents

This study investigated the potential degradation of industrial effluents by environmental species of cyanobacteria. Cyanobacterial species isolated from the Pharmaceutical and Textile industries Mandideep, Bhopal were exposed. Isolation and utilization of the locally generated cyanobacterial biomass for remediation of private industrial activities will generate a source of revenue in Bhopal localities. Biodegradation and biosorption capacity of some potential cyanobacterial species: Oscillatoria sp., Synechococcus sp., Nodularia sp., Nostoc sp. and Cyanothece sp. dominated the effluents and mixed cultures showed varying sensitivity. Contaminant was removed by all the species, either as individuals or mixtures, at both concentrations. The abundance of cyanobacteria in thiseffluent was due to favorable contents of organic matter, rich calcium and nutrients such as nitrates and phosphates with less dissolved oxygen. Removal efficiencies of the different contaminants were evaluated and compared. Results confirmed the high efficiencies of the investigated species for the removal of the target contaminants which were species and contaminant-dependent. The contaminants removal efficiency (RE) percentage of cyanobacterial species ranged between 69.5 and 99.6% with a maximum of 97.0 to 99.6% at 5 ppm, 83.9% and 99.7% at 10 ppm and maximum between 95.5 and 99.7%. Mixed culture RE percentages ranged between 91.6 and 100% at 5 ppm with a maximum range of 99.3 to 100%, while at 10 ppm, the RE percentage ranged between 90.4 and 100%, with a maximum range of 96.0 to 100%. Results indicate the potential of natural resources as efficient agents for pollution control.Key word: Cyanobacteria, industrial effluents, bioremediation