The current non-status of general equilibrium theory

General equilibrium, Price determination, D50,

On recursive solutions to simple allocation problems

We propose and axiomatically analyze a class of rational solutions to simple allocation problems where a policy-maker allocates an endowment E among n agents described by a characteristic vector c. We propose a class of recursive rules which mimic a decision processwhere the policy-maker initially starts with a reference allocation of E in mind and then uses the data of the problem to recursively adjust his previous allocation decisions.We showthat recursive rules uniquely satisfy rationality, c-continuity, and other-c monotonicity. We also show that a well-known member of this class, the Equal Gains rule, uniquely satisfies rationality, c-continuity, and equal treatment of equals

Foreign Direct Investment in R&D and Exchange Rate Uncertainty

Exchange rates, Uncertainty, R&D, FDI, Panel estimation, F31,

Will Markets Direct Investments Under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots

Greenhouse gas, Joint implementation, Kyoto Protocol, Count model, Selection model, C34, D72, F35, F37, P16, Q58,

On the macroeconomics of uncertainty and incomplete markets

Presidential address for the Twelfth World Congress of the International Economic Association, summarising semi-formally the author's recent work and concerns. Uncertainty and incomplete markets breed demand volatility as well as price and wage rigidities. The conjunction of these leads to multiple, volatile supply-constrained equilibria, typically reflecting coordination failures and apt to display persistence - as documented by three supporting theorems. Specific implications are linked to the conclusions that we should take coordination failures seriously, try to obviate demand volatility and try to by-pass price and wage rigidities