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Showing papers in "Journal of Mathematical Economics in 2007"


Journal ArticleDOI
TL;DR: The authors apply Pires's coherence property between unconditional and conditional preferences that admit a CEU representation, and show that the conditional preference may be obtained from the unconditional preference by taking the Full Bayesian Update of the capacity.

105 citations


Journal ArticleDOI
TL;DR: In this paper, the existence of Nash equilibria for games with pseudocontinuous payoffs is proved and a maximum theorem is proved for such a class of functions and connections with similar results are investigated.

59 citations


Journal ArticleDOI
TL;DR: In this article, the authors studied a one-sector stochastic optimal growth model with i.i.d. productivity shocks and showed that the density of optimal output converges to a unique invariant density independently of initial output under the assumption that the distribution has a density whose support is an interval, bounded or unbounded.

42 citations


Journal ArticleDOI
TL;DR: In this paper, the authors extend the canonical representative agent Ramsey model to include heterogeneous agents and elastic labor supply, and show that the welfare maximization problem is equivalent to a non-stationary reduced form model.

24 citations


Journal ArticleDOI
TL;DR: To prove this theorem, it is shown that all fuzzy aggregation rules which are strategyproof and satisfy the minimal range condition must also satisfy counterparts of independence of irrelevant alternatives and the Pareto criterion.

24 citations


Journal ArticleDOI
TL;DR: In this article, the authors introduce a new game form which allows the players' strategies to depend on their strategy-relevant private information as well as on some publicly announced information, and prove the existence of a pure strategy equilibrium for such a game by developing a distribution theory of correspondences via vector measures.

24 citations


Journal ArticleDOI
TL;DR: In this paper, a general framework for the fair allocation of indivisible objects when each agent can consume at most one (e.g., houses, jobs, queuing positions) and monetary compensations are possible is introduced.

23 citations


Journal ArticleDOI
TL;DR: In this paper, a two-period equilibrium model with securitization of collateral-backed promises is proposed, where borrowers may suffer extra economic default penalties and debts are pooled into collateralized loans obligations (CLO), allowing different seniority levels among tranches in a same CLO.

23 citations


Book ChapterDOI
TL;DR: In this paper, a large number of papers have established the fact that locally indeterminate equilibria and sunspots fluctuations may arise in infinite-horizon growth models with external effects in production.

23 citations


Journal ArticleDOI
TL;DR: In this paper, the authors investigate the impatience implications resulting from the assumption of existence of a Paretian social welfare function aggregating infinite utility streams, and show that the set of utility streams at which the SWF exhibits impatience, has the power of the continuum.

21 citations


Journal ArticleDOI
Yuzhe Zhang1
TL;DR: In this article, the stability of a stochastic optimal growth economy with non-compact state space was studied and the equivalence between the stability and the uniqueness of the invariant distribution in this dynamic system was shown.

Journal ArticleDOI
TL;DR: In this article, the authors extend the fundamental theorem of asset pricing to the case of markets with liquidity risk, and show that the robust no-arbitrage property can be obtained in a finite discrete time.

Journal ArticleDOI
TL;DR: In this paper, the Radner-Rosenthal theorem with finite action spaces was extended to the case that the action space is countable and complete, and the existence of a pure strategy equilibrium for a game with a continuum of players of finite types was shown.

Journal ArticleDOI
TL;DR: In this paper, the authors study the dynamics of strategic Ramsey equilibrium trajectories when the turnpike property holds and there is a stationary equilibrium with only the most patient household owning capital.

Journal ArticleDOI
TL;DR: In this paper, the authors provide sufficient conditions for the existence and computation of Markovian equilibrium for a large class of OLG models with Markov shocks to production, including those with social security, income redistribution policies, taxation, valued fiat money, production nonconvexities, and monopolistic competition.

Journal ArticleDOI
TL;DR: In this paper, the authors derived the conditions under which the positive relationship between coverage and the accident probability holds true in a general setting involving multiple loss levels and fixed administrative costs, and showed that this prediction holds necessarily true only if all equilibrium contracts offer strictly positive coverage.

Journal ArticleDOI
TL;DR: In this article, the authors investigate the possibility that the imposition of a minimum wage increases employment in the affected sector, measured in terms of hours of work, and lowers product prices.

Journal ArticleDOI
Tom Krebs1
TL;DR: In this article, the authors studied costly information acquisition in one-good production economies when agents acquire private information and prices transmit information, and they showed that the information efficiency is in general consistent with information acquisition.

Journal ArticleDOI
TL;DR: In this paper, the authors strengthen this observation by proving that under top responsiveness even the strict core of a hedonic game is non-empty under a top responsiveness condition on players' preferences.

Journal ArticleDOI
TL;DR: In this paper, a class of weak additivity concepts for an operator on the set of real valued functions on a finite state space is proposed, which include additivity and comonotonic additivity as extreme cases.

Journal ArticleDOI
TL;DR: In this paper, a simple discrete time model for valuing real options is presented and a simple proof of optimal exercise rules for the standard problems in real options theory is given in the binomial and trinomial models, and more generally when the underlying uncertainty is modelled as a random walk on a lattice.

Journal ArticleDOI
TL;DR: In this article, a two-country endogenous growth model was proposed to explain joint determination of long-run trade patterns and world growth rates, providing the existence and local stability of the continuum of balanced growth paths.

Journal ArticleDOI
TL;DR: In this paper, the authors show that there exists an equilibrium with the following properties: all consumers deposit at the bank, all patient consumers wait for the last period to withdraw, and the bank fails with strictly positive probability.

Journal ArticleDOI
TL;DR: In this article, the authors introduce labor unions and unemployment in a finance constrained monetary economy with heterogenous agents and productive labor externalities, and find that unions, introducing endogenous markup variability, influence the dynamics of the model.

Journal ArticleDOI
TL;DR: In this paper, the authors analyze the possibility of eventual extinction of a replenishable economic asset (natural resource or capital) whose stocks follow a stationary Markov process with zero as an absorbing state, and identify conditions for almost sure extinction from all initial stocks as well as conditions under which the stocks enter every neighborhood of zero infinitely often almost surely.

Journal ArticleDOI
TL;DR: In this article, the authors give an elementary proof of existence of equilibrium with dividends in an economy with possibly satiated consumers and introduce a no-arbitrage condition and show that it is equivalent to the existence of equilibria with dividends.

Journal ArticleDOI
TL;DR: In this paper, the authors examined the problem of the existence of equilibrium for the stochastic analogue of the von Neumann-Gale model of economic growth and showed that these assumptions can be substantially relaxed if one allows for randomization.

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the question of how many coalitions of a given relative size would block a non-Walrasian allocation in large finite economies, and they showed that the proportion of blocking coalitions in the set of all coalitions with relative size between [alpha] and [beta], is arbitrarily close to 1/2.

Journal ArticleDOI
TL;DR: In this paper, the authors give an axiomatization of preferences over infinite consumption streams, and they adopt the additive case, and give a characterization of preferences which satisfy patience, which is extended to non-additives preferences where similar results are generalized and naive patience receives a positive treatement through the liminf criterion.

Journal ArticleDOI
TL;DR: In this paper, an extensive form game for veto-balanced TU games in which a veto player is the proposer and the other players are responders is presented. And the set of Nash outcomes of this game is described, and compared to solutions of the nucleolus, kernel and egalitarian core.