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.

Should voters be afraid of hard budget constraint legislation? fiscal responsibility law in brazilian municipalities

This manuscript demonstrates that voters have nothing to be afraid of when new hard budget constraint legislation is implemented. Our claim is that this kind of legislation reduces the asymmetry of information between voters and incumbents over the budget and, as a consequence, the latter have incentives to increase the supply of public goods. As a nationwide institutional innovation, the Fiscal Responsibility Law (FRL) is exogenous to all municipalities; therefore, there is no self-selection bias in its implementation. We show that public goods expenditure increases after the FRL. Second, this increase occurs in municipalities located in the country’s poorest region. Third, our findings can be extended to the supply of public goods because the higher the expenditure with health and education, the greater the probability of incumbents being re-elected. Finally, there exists a “de facto” higher supply of public goods in education (number of per capita classrooms) after the FRL.

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.

Neutralizing the tendency to the overvaluation of the exchange rate or assuming a foreign constraint and asking for foreign savings

The objectives of these notes are two. The first objective is to analyze whether the strategy of growth with absorption of foreign savings leads to a trajectory of the economy that is sustainable in the long run. The second one is to evaluate the possibility of success of a policy of administered devaluation of the exchange rate in Brazil.

Graphical constraints: a graphical user interface for constraint problems

A constraint satisfaction problem is a classical artificial intelligence paradigm characterized by a set of variables (each variable with an associated domain of possible values), and a set of constraints that specify relations among subsets of these variables. Solutions are assignments of values to all variables that satisfy all the constraints. Many real world problems may be modelled by means of constraints. The range of problems that can use this representation is very diverse and embraces areas like resource allocation, scheduling, timetabling or vehicle routing. Constraint programming is a form of declarative programming in the sense that instead of specifying a sequence of steps to execute, it relies on properties of the solutions to be found, which are explicitly defined by constraints. The idea of constraint programming is to solve problems by stating constraints which must be satisfied by the solutions. Constraint programming is based on specialized constraint solvers that take advantage of constraints to search for solutions. The success and popularity of complex problem solving tools can be greatly enhanced by the availability of friendly user interfaces. User interfaces cover two fundamental areas: receiving information from the user and communicating it to the system; and getting information from the system and deliver it to the user. Despite its potential impact, adequate user interfaces are uncommon in constraint programming in general. The main goal of this project is to develop a graphical user interface that allows to, intuitively, represent constraint satisfaction problems. The idea is to visually represent the variables of the problem, their domains and the problem constraints and enable the user to interact with an adequate constraint solver to process the constraints and compute the solutions. Moreover, the graphical interface should be capable of configure the solver’s parameters and present solutions in an appealing interactive way. As a proof of concept, the developed application – GraphicalConstraints – focus on continuous constraint programming, which deals with real valued variables and numerical constraints (equations and inequalities). RealPaver, a state-of-the-art solver in continuous domains, was used in the application. The graphical interface supports all stages of constraint processing, from the design of the constraint network to the presentation of the end feasible space solutions as 2D or 3D boxes.

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.

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)

Uma investigação de algoritmos exatos e metaheurísticos aplicados ao nonograma

Nonogram is a logical puzzle whose associated decision problem is NP-complete. It has applications in pattern recognition problems and data compression, among others. The puzzle consists in determining an assignment of colors to pixels distributed in a N  M matrix that satisfies line and column constraints. A Nonogram is encoded by a vector whose elements specify the number of pixels in each row and column of a figure without specifying their coordinates. This work presents exact and heuristic approaches to solve Nonograms. The depth first search was one of the chosen exact approaches because it is a typical example of brute search algorithm that is easy to implement. Another implemented exact approach was based on the Las Vegas algorithm, so that we intend to investigate whether the randomness introduce by the Las Vegas-based algorithm would be an advantage over the depth first search. The Nonogram is also transformed into a Constraint Satisfaction Problem. Three heuristics approaches are proposed: a Tabu Search and two memetic algorithms. A new function to calculate the objective function is proposed. The approaches are applied on 234 instances, the size of the instances ranging from 5 x 5 to 100 x 100 size, and including logical and random Nonograms

Metabolic response to feeding in Tupinambis merianae: Circadian rhythm and a possible respiratory constraint

The diurnal tegu lizard Tupinambis merianae exhibits a marked circadian variation in metabolism that is characterized by the significant increase in metabolism during part of the day. These increases in metabolic rate, found in the fasting animal, are absent during the first 2 d after meal ingestion but reappear subsequently, and the daily increase in metabolic rate is added to the increase in metabolic rate caused by digestion. During the first 2 d after feeding, priority is given to digestion, while on the third and following days, the metabolic demands are clearly added to each other. This response seems to be a regulated response of the animal, which becomes less active after food ingestion, rather than an inability of the respiratory system to support simultaneous demands at the beginning of digestion. The body cavity of Tupinambis is divided into two compartments by a posthepatic septum (PHS). Animals that had their PHS surgically removed showed no significant alteration in the postprandial metabolic response compared to tegus with intact PHS. The maximal metabolic increment during digestion, the relative cost of meal digestion, and the duration of the process were virtually unaffected by the removal of the PHS.