Browsing by Subject "Equilibrium (Economics)--Mathematical models."

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Open Access
Determinacy of equilibrium in a cash-in-advance model
(2000) Tekatlı, Necati
This thesis studies on the determinacy of equilibrium in a cash-iii-advance production economy. The model consists o f two types of infinitely lived agents, producer and labor tyjoes. Producer types face financial constraints in their labor demands. There are two markets operating in a sequence, first labor market and then goods market open in each period. In this setup, the possibility o f selffulfilling inflations, deflations and fluctuations are investigated. The first result of the thesis rules out these possibilities. As a second result, we observe that the initial distribution of money across types is irrelevant regarding equilibrium consumption and welfare levels.
Open Access
Existence of competitive equilibrium under financial constraints and increasing returns
(2000) Ata, H. Nur
In this work we analyze the existence of equilibrium under increasing returns in a limited participation model. There arc two types of agents. Producer type has an increasing returns to scale (IRS) technology with no labor endowment while worker type has onh' labor endowment. Economy consists of three periods. At each period, due to cash-in-advance constraints imposed on factor purchases, goods market opens after the labor market closes. Total money stock is assumed to be constant. With this setup we were able to establish the existence and uniqueness of competitive equlibrium with increasing returns for the special case that the agent’s preferences are being represented by logarithmic utility.
Open Access
Labor migration and trade patterns in the presence of age composition differences across countries: an overlapping generations analysis
(2000) Uyar, Ali Emre
This study examines various effects of population growth differentials across countries by using a two country overlapping generations (OLG) general equilibrium model and shows that the resulting differences in age composition of populations provide not only a basis for trade but also incentives for international migration of labor. The analysis starts by considering autarky equilibria of the countries that are assumed to be identical except for population growth rates initially, and shows that the country with the lower (higher) population growth rate will have higher (lower) capital per worker, wage rate and lifetime utility at all times. The cases of free trade and international mobility of labor are then simulated for a comparative investigation. The simulations with the considered migration scheme reveal that the steady state value of migration rate equalizes the post-migration population growth rates in both coimtries. When trade is also taken into consideration, the results indicate that the country that is attractive to the migrants would prefer trade to migration, if it is a large country relative to the other. If both countries are equal in size, on the other hand, trade turns out to be Pareto-inferior to migration for the host country, with autarky being Pareto-superior to both trade and migration.
Open Access
A supply side limited participation model of monetary transmission mechanism
(2001) Karaca, Zeynal
This thesis is a theoretical investigation of how money growth affects output, employment, consumption and real wages from a supply side channel. We analyze the effects of monetary shocks under deterministic and stochastic environments in a limited participation model with competitive and sticky wages. We find that anticipated money growth decreases output, employment, consumption, working capital and real wages, but increases profitability of the firms. Unanticipated money growth under sticky wages increases employment, output and consumption, decreases price and profits. The main contribution of this thesis to the literature is that when sticky nominal wages are included in a limited participation model with inelastic labor supply stylized business cycle facts can be obtained