Kazuya Kamiya

On the survival assumption in marginal cost pricing

Abstract The purpose of this paper is to show that marginal (cost) pricing equilibria need not exist without the survival assumption.

On the Role of Tax Subsidy Scheme in Money Search Models

This paper investigates the role of policy in money search models with divisible money. Recently, real indeterminacy of stationary equilibria has been found in both specific and general search models with divisible money. Thus if we assume the divisibility of money, it would be quite difficult to make accurate predictions of the effects of simple monetary policies. Instead, we show that some tax-subsidy schemes select a determinate efficient equilibrium. In other words, for a given efficient equilibrium and for any real number ? > 0, a certain tax-subsidy scheme induces a locally determinate equilibrium within the ? -neighborhood of the given equilibrium. Moreover, the size of the tax-subsidy can be arbitrarily small.

Stationary monetary equilibria with strictly increasing value functions and non-discrete money holdings distributions: An indeterminacy result

In this paper, we present a search model with divisible money in which there exists a continuum of monetary equilibria with strictly increasing continuous value functions and with non-discrete money holdings distributions.

Computation of equilibria in an economy with increasing returns to scale technologies

The purpose of this paper is to show that equilibria in an economy with increasing returns to scale technologies are computable.

Efficient Algorithms for Solving Systems of Nonlinear Equations with a Block Diagonal Structure

The purpose of this paper is to present efficient algorithms for computing solutions to systems of nonlinear equations with a block diagonal structure. The special structure of the systems, which arises in economic models, allows us to use the decomposition of the problems.

Simplicial Algorithm to Find Zero Points of a Function with Special Structure on a Simplotope

In this paper we introduce a variable dimension simplicial algorithm on a cartesian product of unit simplices to find a zero point of a continuous function with special structure. The special structure of the function allows us to perform the linear programming pivot steps of the algorithm in a small system of equations. Moreover, a specific simplicial subdivision of the simplotope underlies the algorithm. The path of points generated by the algorithm approximately follows a piecewise smooth path in the simplotope. The latter path can be interpreted as being generated by an adjustment process. We discuss two applications, an international trade economy and an economy with increasing returns to scale. In both applications the zero points of the function induce equilibria in the economies.

Real Indeterminacy of Stationary Monetary Equilibria in Centralized Economies

Abstract We show that real indeterminacy of stationary equilibria, by which the set of stationary equilibria is a continuum and the real allocation varies among equilibria, may arise in some general equilibrium models with fiat money. The conditions under which such equilibria arise are: (i) each household optimally saves a constant amount of money; and (ii) at least two households face different budget constraints. We present various models, including a decentralized money search model and a centralized model with a monopoly firm, to explain how these conditions lead to real indeterminacy. Finally, we present a policy that uniquely implements any desirable outcome.

Nonlinear Pricing in General Equilibrium Models with Joint Production

This paper considers general equilibrium models of public utilities which produce either public goods or private goods. In the models, cases of increasing returns are not a priori excluded. The products of the public utilities and their costs are allocated to the consumers according to a rule that is dependent on information communicated to the public utilities. We show that if the public utilities follow a nonlinear pricing rule, the equilibrium allocations are always Pareto‐optimal. Moreover, the message space is of finite dimensions. JEL Classification Numbers: D51, D60, H41, H42.