Money,growth, and the stability of the steady state under myopic perfect foresight

The stability of a monetary growth model is demonstrated. It differs from the standard two- asset model in the presence of interest bearing government debt, the endogenous determination of the money supply and an investment function that is sensitive to interest rates and disposable income.     

On blocking coalitions: Linking Mas-Colell with Grodal–Schmeidler–Vind

In this paper we investigate the question of how many coalitions of a given relative size would block a non-Warlasian allocation in large finite economies. It is shown that in finite economies, if a Pareto optimal allocation is bounded away from being Walrasian, then, for any two numbers α$\alpha$ and β$\beta$ between 0 and 1, the proportion of blocking coalitions in the set of all coalitions with relative size between α$\alpha$ and β$\beta$, is arbitrarily close to 1/2, as the number of individuals in the economy becomes large.     

Fat tails and spurious estimation of consumption‐based asset pricing models

The standard generalized method of moments (GMM) estimation of Euler equations in heterogeneous‐agent consumption‐based asset pricing models is inconsistent under fat tails because the GMM criterion is asymptotically random. To illustrate this, we generate asset returns and consumption data from an incomplete‐market dynamic general equilibrium model that is analytically solvable and exhibits power laws in consumption. Monte Carlo experiments suggest that the standard GMM estimation is inconsistent and susceptible to Type II errors (incorrect nonrejection of false models). Estimating an overidentified model by dividing agents into age cohorts appears to mitigate Type I and II errors.     

Securitized markets,international capital flows,and global welfare

We study the effect of collateralized lending and securitization on international capital flows and welfare in a two-country general equilibrium model with idiosyncratic investment risk. The low-margin country (Home) endogenously supplies more safe assets and enables more risk sharing. Upon financial integration, capital flows from Foreign (high-margin country) to Home, leading to lower interest rates and a larger global supply of safe assets. Unlike in standard models with partial equity issuance, in our model, Home can lose from financial integration due to the endogenous reduction in risk sharing and aggregate shocks can generate large gross capital flows.     

Minimum wage regulation and economic growth

This paper investigates the long-run growth implications of minimum wage regulation (MWR) enforced nationally using a familiar aggregate growth model. The paper shows that MWR, if it is effective, always lowers the rate of growth, and that the minimum wage floor, if it is sufficiently high, causes the economy to decay all the way toward the origin. The effects of a “wage-mark-up” policy, a variation of MWR, are also examined.     

The Emergence of Market Power in Emission Rights Markets: The Role of Initial Permit Distribution

This paper offers an analytical model of emission permit markets in which a large number of regulated emitters participate, and derives formulae that estimate the degree of market distortion. These formulae clearly show the entire dependence of the ratio of market prices to competitive levels on the permit initial distribution as well as the existence of a threshold for effective market power. While the findings challenge a well-known conception of the Coase Theorem, they have significant policy implications vis-à-vis the Kyoto Protocol and the related policy debates on excess emission rights known as hot air.     

Money,national debt,and economic growth

This paper develops a dynamic model which allows for government spending, taxation, and the endogeneity of the money supply. As an example of an application of our framework, we consider the well known stability problem of the two asset (money and physical assets) neoclassical “money-and-growth” literature. We conclude, among other things, that the usual saddle-point instability result under myopic perfect foresight with proportional savings behavior can be reversed by introducing a third asset (securities). It is further argued that this result is “robust” as it holds under various policy rules (including the traditional case of national debt growing at a constant rate).     

Further critical reflections on a contribution to the methodological issues debate in accounting

Laughlin's (1995) contribution to the methodological issues debate in accounting (Laughlin R. Empirical research in accounting: alternative approaches and a case for “middle-range” thinking. Accounting, Auditing & Accountability Journal 1995;8(1):53–87.) is often cited. Here, we assess and clarify the contribution, including in reflecting upon some critical reception. We initially provide an overview of Laughlin (1995), enhancing appreciation of this by relating it to prior work. We then appraise some previous critical assessments of Laughlin (1995) and take into consideration Laughlin's interaction therewith. We go on to elaborate our own critical appreciation. We conclude that Laughlin (1995) substantively provides for a number of insights that continue to be positive for the development of research into accounting and related practices. Developing our analysis, we indicate the continuing strengths of a German critical theoretical orientation in researching and developing theoretical appreciation of accounting and related practices today.