The existing models of Bayesian learning with multiple priors by Marinacci (Stat Pap 43:145–151, 2002) and by Epstein and Schneider (Rev Econ Stud 74:1275–1303, 2007) formalize the intuitive notion that ambiguity should ...
In the real economic world, we often suffer from the default risk—the
present financial crisis could serve as an evidence. The long established idea for
inhibiting the default behavior is to resort to collateral, and ...
This paper first establishes the existence of equilibrium for an economy with Knightian uncertainty and incomplete
markets, and then demonstrates the constrained Pareto efficiency of the equilibrium when there is one ...
We re-examine the theoretical and empirical relationship between income inequality and long-run economic growth in an endogenous growth model with a flat tax on income, distributive conflicts among agents, and median voter ...
The problem of computing equilibria for general equilibrium models with incomplete real asset markets, or GEI models
for the sake of brevity, is reconsidered. It is shown here that the rank-dropping behavior of the asset ...
