Contract enforcement and incentive compatibility in large economies with differential information: the role of exact feasibility

We consider exchange economies with a continuum of agents and differential information about finitely many states of nature. It was proved in Einy, Moreno and Shitovitz (2001) that if we allow for free disposal in the market clearing (feasibility) constraints then an irreducible economy has a competitive (or Walrasian expectations) equilibrium, and moreover, the set of competitive equilibrium allocations coincides with the private core. However when feasibility is defined with free disposal, competitive equilibrium allocations may not be incentive compatible and contracts may not be enforceable (see e.g. Glycopantis, Muir and Yannelis (2002)). This is the main motivation for considering equilibrium solutions with exact feasibility. We first prove that the results in Einy et al. (2001) are still valid without free-disposal. Then we define an incentive compatibility property motivated by the issue of contracts’ execution and we prove that every Pareto optimal exact feasible allocation is incentive compatible, implying that contracts of a competitive or core allocations are enforceable.

On the Impossibility of an Exact Imperfect Monitoring Folk Theorem

It is shown that, for almost every two-player game with imperfect monitoring, the conclusions of the classical folk theorem are false. So, even though these games admit a well-known approximate folk theorem, an exact folk theorem may only be obtained for a measure zero set of games. A complete characterization of the efficient equilibria of almost every such game is also given, along with an inefficiency result on the imperfect monitoring prisoner s dilemma.

Exact arbitrage, well-diversified portfolios and asset pricing in large markets

: In a model of a nancial market with an atomless continuum of assets, we give a precise and rigorous meaning to the intuitive idea of a \well-diversi ed" portfolio and to a notion of \exact arbitrage". We show this notion to be necessary and su cient for an APT pricing formula to hold, to be strictly weaker than the more conventional notion of \asymptotic arbitrage", and to have novel implications for the continuity of the cost functional as well as for various versions of APT asset pricing. We further justify the idealized measure-theoretic setting in terms of a pricing formula based on \essential" risk, one of the three components of a tri-variate decomposition of an asset's rate of return, and based on a speci c index portfolio constructed from endogenously extracted factors and factor loadings. Our choice of factors is also shown to satisfy an optimality property that the rst m factors always provide the best approximation. We illustrate how the concepts and results translate to markets with a large but nite number of assets, and relate to previous work.

Infrastructure privatization in a neoclassical economy: macroeconomic impact and welfare computation

In this paper a competi tive general equilibrium model is used to investigate the welfare and long run allocation impacts of privatization. There are two types of capital in this model economy, one private and the other initially public ("infrastructure"), and a positive extemality due to the latter is assumed. A benevolent governrnent can improve upon decentralized allocation intemalizing the extemality, but it introduces distortions in the economy through the finance of its investments. It is shown that even making the best case for public action - maximization of individuais' welfare, no operation inefficiency and free supply to society of infrastructure services - privatization is welfare improving for a large set of economies. Hence, arguments against privatization based solely on under-investment are incorrect, as this maybe the optimal action when the financing of public investment are considered. When operation inefficiency is introduced in the public sector, gains from privatization are much higher and positive for most reasonable combinations of parameters.

Exact solution for a fermion in the background of a scalar inversely linear potential

The problem of a fermion subject to a general scalar potential in a two-dimensional world is mapped into a Sturm-Liouville problem for nonzero eigenenergies. The searching for possible bounded solutions is done in the circumstance of power-law potentials. The normalizable zero-eigenmode solutions are also searched. For the specific case of an inversely linear potential, which gives rise to an effective Kratzer potential, exact bounded solutions are found in closed form. The behaviour of the upper and lower components of the Dirac spinor is discussed in detail and some unusual results are revealed. (C) 2004 Elsevier B.V. All rights reserved.

Effective action for QED with fermion self-interaction in D=2 and D=3 dimensions

In this work we discuss the effect of the quartic fermion self-interaction of Thirring type in QED in D=2 and D=3 dimensions. This is done through the computation of the effective action up to quadratic terms in the photon field. We analyze the corresponding nonlocal photon propagators nonperturbatively in k/m, where k is the photon momentum and m the fermion mass. The poles of the propagators were determined numerically by using the MATHEMATICA software. In D=2 there is always a massless pole whereas for strong enough Thirring coupling a massive pole may appear. For D=3 there are three regions in parameter space. We may have one or two massive poles or even no pole at all. The interquark static potential is computed analytically in D=2. We notice that the Thirring interaction contributes with a screening term to the confining linear potential of massive two-dimensional QED (QED(2)). In D=3 the static potential must be calculated numerically. The screening nature of the massive QED(3) prevails at any distance, indicating that this is a universal feature of D=3 electromagnetic interaction. Our results become exact for an infinite number of fermion flavors.

Some exact solutions of the Dirac equation

Exact analytic solutions are found to the Dirac equation for a combination of Lorentz scalar and vector Coulombic potentials with additional non-Coulombic parts. An appropriate linear combination of Lorentz scalar and vector non-Coulombic potentials, with the scalar part dominating, can be chosen to give exact analytic Dirac wave functions.

Exact closed-form solutions of the Dirac equation for a class of effective Morse potentials

Exact bounded solutions for a fermion subject to exponential scalar potential in 1 + 1 dimensions are found in closed form. We discuss the existence of zero modes which are related to the ultrarelativistic limit of the Dirac equation and are responsible for the induction of a fractional fermion number on the vacuum.

Dirac equation exact solutions for generalized asymmetrical Hartmann potentials

In this work we solve the Dirac equation by constructing the exact bound state solutions for a mixing of vector and scalar generalized Hartmann potentials. This is done provided the vector potential is equal to or minus the scalar potential. The cases of some quasi-exactly solvable and Morse-like potentials are briefly commented. (c) 2006 Elsevier B.V. All rights reserved.

Exact closed-form solutions of the Dirac equation with a scalar exponential potential

The problem of a fermion subject to a general scalar potential in a two-dimensional world for nonzero eigenenergies is mapped into a Sturm-Liouville problem for the upper component of the Dirac spinor. In the specific circumstance of an exponential potential, we have an effective Morse potential which reveals itself as an essentially relativistic problem. Exact bound solutions are found in closed form for this problem. The behaviour of the upper and lower components of the Dirac spinor is discussed in detail, particularly the existence of zero modes. (c) 2005 Elsevier B.v. All rights reserved.

Extended class of exact twistons and crystalline polyethylene

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

Spin and pseudospin symmetries in the antinucleon spectrum of nuclei

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

A new method for real time computation of power quality indices based on instantaneous space phasors

One of the important issues about using renewable energy is the integration of dispersed generation in the distribution networks. Previous experience has shown that the integration of dispersed generation can improve voltage profile in the network, decrease loss, etc. but can create safety and technical problems as well. This work report the application of the instantaneous space phasors and the instantaneous complex power in observing performances of the distribution networks with dispersed generators in steady state. New IEEE apparent power definition, the so-called Buchholz-Goodhue effective apparent power, as well as new proposed power quality (oscillation) index in the three-phase distribution systems with unbalanced loads and dispersed generators, are applied. Results obtained from several case studies using IEEE 34 nodes test network are presented and discussed. (C) 2006 Elsevier B.V. All rights reserved.