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This paper considers a general equilibrium model with incomplete financial markets where production sets depend on the financial decisions of the firms. In the short run, firms make financial choices in order to build up production capacity. Given production capacity firms make profit maximizing production decisions in period two. We provide the conditions of existence of equilibria.

This paper considers a group of consumers who have preferences over how a good is produced and distributed, rather its traits alone. Moreover, it is hypothesized that ethical preferences also depend on prices, and that prices inform consumers about the way goods are produced and distributed. The concept of conspicuous ethics is introduced in order to motivate the consumption of ethically produced goods. The paper states the assumptions and conditions representing the consumption behavior of the ethical consumer. It is shown that a price-dependent direct utility function provides the necessary structure in the characterization of the consumption behavior of the ethical consumer.

This paper considers a dynamical system defined by a set of ordinary autonomous differential equations with discontinuous right-hand side. Such systems typically appear in economic modelling where there are two or more regimes with a switching between them. Switching between regimes may be a consequence of market forces or deliberately forced in form of policy implementation. Stiefenhofer and Giesl [1] introduce such a model. The purpose of this paper is to show that a metric function defined between two adjacent trajectories contracts in forward time leading to exponentially asymptotically stability of (non)smooth periodic orbits. Hence, we define a local contraction function and distribute it over the smooth and nonsmooth parts of the periodic orbits. The paper shows exponentially asymptotical stability of a periodic orbit using a contraction property of the distance function between two adjacent nonsmooth trajectories over the entire periodic orbit. Moreover it is shown that the ω-limit set of the (non)smooth periodic orbit for two adjacent initial conditions is the same.