Abstract:
This paper explores the effects of trade policy under induced innovation in general equilibrium. The analysis considers the effects of discrete changes in tariffs and import quotas, allowing for heterogeneous technologies among firms. The interactions between induced innovation and the effects of trade policy give a set of “LeChatelier effects” comparing short run versus long run market equilibrium. We investigate how induced innovation can reduce the adverse effects of tariffs on trade, and influence the effects of quotas on corresponding quota rents. The analysis presents new LeChatelier results that apply globally, i.e. under any discrete change in trade policy.

Abstract:
This paper proposes a decomposition of the cost of risk (as measured by a
risk premium) across intervals/quantiles of the payoff distribution. The
analysis is based on general smooth risk preferences. While this includes the
expected utility model as a special case, the investigation is done under a
broad class of non-expected utility models. We decompose the risk premium into
additive components across quantiles. Defining downside risk as the risk
associated with a lower quantile, this provides a basis to evaluate the cost of
exposure to downside risk. We derive a local measure of the cost of risk
associated with each quantile. It establishes linkages between the cost of
risk, risk preferences and the distribution of risky prospects across quantiles
(as measured by quantile variance and skewness). The analysis gives new and
useful information on how risk aversion, exposure to downside risk and
departures from the expected utility model interact as they affect the risk
premium.

Abstract:
This paper explores the aggregate gains from trade
with a focus on the role of non-convexity. After reviewing the example
presented by Ricardo, we develop a general equilibrium model of trade under
non-convex technologies and heterogeneous firms. The model is used to evaluate
aggregate efficiency, with a focus on the case where trade restrictions are the
only source of inefficiency. The analysis allows for non-linear pricing which becomes
an integral part of efficiency under non-convex technologies. We establish
bounds on the gains from trade. We show that the gains from trade are
non-negative and that they tend to be small under convexity but can become
large under non-convexity. This indicates that the search for larger gains from
trade needs to be associated with non-convex technologies. Implications of our
analysis for the benefits of globalization are discussed.

Abstract:
This paper presents an analysis of long run equilibrium of industry structure and firm conduct allowing for entry and exit, and cost heterogeneity among firms. It investigates the case of firms’ conduct/markups that emerges as the stationary equilibrium from long run evolutionary selection over time. Treating the number of firms as endogenous provides linkages between firms’ conduct and market structure. The implications of cost structure for market equilibrium price, firms' conduct and industry concentration are investigated. The effects of fixed cost and entry/exit on long run industry equilibrium are examined. The analysis shows how globalization can help reduce the firms’ exercise of market power, increase the responsiveness of aggregate supply, and reduce price sensitivity to shocks. It also shows how neglecting either entry/exit or adjustments in firm conduct underestimates the aggregate effects of globalization.

Abstract:
This paper proposes concentration indices that extend the classical Hirschman-Herfindahl Index to include vertical structures for differentiated products. The analysis shows how cross-product substitution/complementarity relationships across vertical channels can affect pricing. It also identifies the role played by market size. The usefulness of the approach is illustrated in an application to a merger analysis in the gasoline market.

Three months before his untimely death in Paris in July 1912, Henri Poincaré formulated the conjecture that Planck’s action element could (should) be regarded as constituting a “véritable atome”, i.e. an “atom of motion”, whose integrity arises from the fact that the “points” it contains are equivalent to one another from the standpoint of probability. In this paper we investigate the possibility that this conjecture provides a clue to the origin and nature of dark matter.

The elementary particles listed in the Standard Model of particle
physics have all in common a quantum mechanical attribute which has the
dimension of the xon, suggestingthat the xon might be a structural ingredient
of matter. The xon should therefore be included as a full-fledged member in the
SM catalog of elementary particles.

Writing
in 1943, renowned Austrian physicist Edwin Schrodinger asked “What is Life?”
thereby invigorating the debate which preoccupied biologists at the time. He
proposed an answer to this question rooted in considerations borrowed from
Thermodynamics and Statistical Mechanics. To reveal the missing link in Biology-Physics,
the present Note investigates an alternate answer in which dynamical action,
rather than thermodynamics and energy, plays the fundamental role. It reviews
in particular the process of biological cell replication which may be
considered to define “Life” and might be the macroscopic manifestation of an
underlying quantum physical process in which xons, conveyors of dynamical
action, are the determining agents.

Abstract:
Using powerful
concepts and tools borrowed from the seminal arsenal connecting physics fundamentals
with esoteric set theoretical operations developed in recent years by Alexandria
E-infinity theoretician M. S. El Naschie, this paper explores the deep implications
of some of the dualities Dr El Naschie has identified and analyzed in his exposes,
connecting them with our own Xonic Quantum Physics (XQP) which places dynamical
action rather than spacetime and energy at the core of the System of the World.

Abstract:
As defined and used in General Relativity calculations, spacetime is a
strictly classical construct which
does not incorporate in any way, shape or form the concept of quantum. While reviewing the efforts that
Alexandria theoretician M. S. El Naschie has made to resolve the dichotomy, we discovered
that his E infinity theory contains a
Cantor set which has characteristics specified by Isaac Newton for Absolute
space. We show that this unexpected connection leads to an understanding of the
mysterious origin of the one and only attribute that all particles listed in
the Standard Model of Elementary Particles possess—including notably the photon—and
which has remained unexplained hitherto: spin. This most rewarding
result reinforces our belief in the relevance of the E infinity basic concepts in relation to our own Xonic Quantum
Physics (XQP) which places dynamical action rather spacetime and energy at the
core of the System of the World.