Money taxes and efficiency when sunspots matter
Article Abstract:
The implementation of tax measures that seek to promote the transfer of resources across segmentation lines may lead to the formation of sunspot equilibria. This conclusion was derived through the use of a dynamic model of segmented asset markets designed to evaluate the impact of sunspot on general price levels and consumption. It was further shown that under sunspot equilibrium conditions, monetary values are governed by the extrinsic nature of the state. Under the same environment, the volume of transfers is directly proportional to consumption volatility.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1998
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Extensive form implementation in incomplete information environments
Article Abstract:
'Posterior reversal' sufficiency condition was used to study the implementation of social choice rules in incomplete information environments. It shows that consistent posterior distribution under truth-telling and consistent posterior distribution under deception are different from each other. Their differences in the distribution over actions and outcomes resulted from the diversity of distribution over their player types.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1998
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Incomplete markets, allocative efficiency, and the information revealed by prices
Article Abstract:
Rational expectations equilibria are compared bearing in mind that price information can vary.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2000
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