Min-Wook Kang

Abstract This paper shows that a strong comparative advantage is necessary for free trade and specialization in a 2 × 2 symmetric Ricardian model to be achieved in a Nash equilibrium. Governments strategically control labor distribution across industries, and representative agents maximize Cobb–Douglas utilities. A Nash equilibrium with complete specialization is achieved if and only if relative productivity exceeds a key value of 3, which is considered a very large number based on previous empi

A novel miniaturized metal-insulator-metal (MIM) capacitor composite right/left-handed (CRLH) transmission line architecture has been proposed and demonstrated to exhibit an almost twofold reduction factor in size in comparison with a previously published interdigital CRLH structure. The MIM CRLH transmission line has been demonstrated as a backfire-to-endfire leaky-wave antenna with excellent scanning performance. The proposed antenna is to be fabricated in LTCC.

In an incomplete markets economy with sunspots, the Pareto-criterion cannot rank sunspot equilibria of different levels of excess price-level volatility. Therefore, I propose a measure of excess volatility cost in terms of a period-0 endowment good. Ex-ante endowment subsidies are provided, in theory, to each consumer, so that the resulting equilibrium allocation of the higher volatility is Pareto-equivalent to the original benchmark equilibrium with a lower volatility level. The aggregate volat

The most prevalent welfare criteria for quasi-hyperbolic discounting models are the Pareto criterion that takes into account all periods' intertemporal utilities and the long-run perspective criterion that considers the intertemporal utility in fictitious period 0. This paper shows that efficiency by the Pareto criterion implies efficiency by the long-run criterion.

Abstract Two major forms of corporate tax policies are dividend and profits taxes. Based on conventional corporate theory, these tax policies distort the firm's investment decisions and decrease firm value. However, this paper shows that under hyperbolically discounted preferences, dividend taxation is capable of boosting firm investment in a value‐enhancing way. The hyperbolically discounted present value can be interpreted as reflecting irrational myopic preferences or, as we demonstrate, redu

This paper examines monetary and fiscal policies to prevent consumers' present bias by implementing a benchmark exponential discounting allocation in a hyperbolic discounting economy. We analyze classical money-in-the-utility-function models and establish that a monetary policy alone cannot curb behavioral mistakes. Instead, it needs to be combined with either a consumption tax or capital tax. If the government uses consumption (capital) tax, the monetary policy should be more expansionary (cont

Abstract Under economies with hyperbolic preferences, vast research has investigated welfare‐improving tax policies to resolve capital misallocation issues. In this paper, we suggests an alternative channel to overcome a form of this issue associated with consumer's present bias—optimism, as defined by overexpectation of future productivity. We show that even though optimism negatively impacts consumers under normal circumstances, a moderate level of it can be beneficial when consumers have hype

Abstract This paper introduces a two‐period monetary general equilibrium model with proportional transaction costs on nominal and inflation‐indexed bonds. This paper demonstrates that financial innovation on indexed bonds causes equilibrium interest rates of the nominal bond to increase when agents have precautionary saving motives. This result implies that ignoring precautionary motives would underestimate savers' welfare gain and overestimate borrowers' welfare gain from innovation on indexed