scholarly journals General Equilibrium in a Heterogeneous-Agent Incomplete-Market Economy with Many Consumption Goods and a Risk-Free Bond

2021 ◽  
Author(s):  
Bar Light
Keyword(s):  
General Equilibrium ◽  
Market Economy ◽  
Incomplete Market ◽  
Heterogeneous Agent ◽  
Consumption Goods

scholarly journals GENERAL EQUILIBRIUM FEEDBACK REGARDING THE EMPLOYMENT EFFECTS OF LABOR TAXES

2019 ◽  
Vol 24 (8) ◽  
pp. 2012-2032
Author(s):  
Minchul Yum
Keyword(s):  
Interest Rate ◽  
General Equilibrium ◽  
Labor Supply ◽  
Real Interest Rate ◽  
Heterogeneous Agent ◽  
Agent Model ◽  
Heterogeneous Agent Model ◽  
Labor Tax ◽  
Labor Taxes ◽  
Tax Changes

A higher labor tax rate increases the equilibrium real interest rate and reduces the equilibrium wage in a heterogeneous-agent model with endogenous savings and indivisible labor supply decisions. I show that these general equilibrium (GE) adjustments, in particular of the real interest rate, reinforce the negative employment impact of higher labor taxes. However, the representative-agent version of the model, which generates similar aggregate employment responses to labor tax changes, implies that GE feedback is neutral. The cross-country panel data reveal that the negative association between labor tax rates and the extensive margin labor supply is significantly and robustly weaker in small open economies where the interest rate is less tightly linked to domestic circumstances. This empirical evidence supports the transmission mechanism of labor tax changes for employment in the heterogeneous-agent model.

Option pricing on foreign exchange in a Markov-modulated, incomplete-market economy

2016 ◽  
Vol 16 ◽  
pp. 208-219 ◽  
Author(s):  
Yu-Min Lian ◽  
Jun-Home Chen ◽  
Szu-Lang Liao
Keyword(s):  
Option Pricing ◽  
Market Economy ◽  
Foreign Exchange ◽  
Incomplete Market ◽  
Markov Modulated

scholarly journals Constrained Efficiency in a Human Capital Model

2018 ◽  
Vol 10 (3) ◽  
pp. 179-214 ◽  
Author(s):  
Yena Park
Keyword(s):  
Human Capital ◽  
Market Economy ◽  
Incomplete Market ◽  
Constrained Efficiency ◽  
Income Sources ◽  
Pecuniary Externalities ◽  
The Poor ◽  
Human Capital Model ◽  
Additional Channel

This paper investigates whether capital and human capital are over-accumulated in an incomplete market economy. As in Dávila et al. (2012), whether capital is over-accumulated depends on how the pecuniary externalities affect insurance and redistribution. In a human capital economy, however, not only capital but also human capital generates externalities and an additional channel arises that has implications for the overaccumulation (under-accumulation) of capital (human capital). The income sources of the poor and the correlation between wealth and human capital are crucial for the implication of pecuniary externalities. Realistically calibrated models exhibit under-accumulation (overaccumulation) of capital (human capital). (JEL D52, D62, I26, J22, J24, J31)

THE CONCEPT OF GENERAL EQUILIBRIUM IN A MARKET ECONOMY WITH IMPERFECTLY COMPETITIVE PRODUCERS*

1977 ◽  
Vol 29 (1-2-3) ◽  
pp. 55-72 ◽  
Author(s):  
Richard R. Cornwall
Keyword(s):  
General Equilibrium ◽  
Market Economy ◽  
Imperfectly Competitive

Portfolio selection in a multi-asset, incomplete-market economy

2019 ◽  
Vol 71 ◽  
pp. 228-238 ◽  
Author(s):  
Yu-Min Lian ◽  
Jun-Home Chen
Keyword(s):  
Market Economy ◽  
Portfolio Selection ◽  
Incomplete Market

scholarly journals The General Equilibrium of a Spatially Extended Market Economy

2010 ◽  
Vol 14 (2) ◽  
pp. 145-154 ◽  
Author(s):  
Tonu Puu
Keyword(s):  
General Equilibrium ◽  
Market Economy ◽  
Spatially Extended
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