In the current FIFA penalty shootout mechanism, a coin toss decides which team will kick first. Empirical evidence suggests that the team taking the first kick has a higher probability to win a shootout. We design sequentially fair shootout mechanisms such that in all symmetric Markov-perfect...

Distortions in the elicitation of economic variables arise frequently. A common problem in household surveys is that reported values exhibit a significant degree of rounding. We interpret rounding as a filter that allows limited information about the relationship of interest to pass. We argue...

Within the last decade kidney exchange has become a mainstream paradigm to increase the number of kidney transplants. However, compatible pairs do not participate, and the full benefit from exchange can be realized only if they do. In this paper, we propose a new incentive scheme that relies on...

We show that non-trivial aggregate fluctuations may originate with vanishingly- small common shocks to either information or fundamentals. These "sentiment" fluctuations can be driven by self-fulfilling variation in either first-order beliefs (as in Benhabib et al., 2015) or higher-order beliefs...

A large literature documents a heterogeneous asset price response to macroeconomic news announcements. In order to explain these differences, we define the intrinsic value of a macroeconomic announcement as its ability to nowcast GDP growth, inflation and the federal funds target rate. We then...

We show that a model with imperfectly forecastable changes in future productivity and an occasionally-binding collateral constraint can match a set of stylized facts about Sudden Stop events. "Good" news about future productivity raises leverage during times of expansions, increasing the...

We use single equation and simultaneous instrumental variable models to explore if individuals smoke during times of stress (i.e., motivation effect) and if they are successful in self-medicating short-term stress (i.e., self-medication effect). Short-term stress is a powerful motivator of...

We estimate a search-based real business cycle economy using quantity data and a broad set of wage indicators, allowing the latent wage to follow a non-structural ARMA process. Under the estimated process, wages adjust immediately to most shocks and induce substantial variation in labor's share...

Random mechanisms have been used in real-life situations for reasons such as fairness. Voting and matching are two examples of such situations. We investigate whether desirable properties of a random mechanism survive decomposition of the mechanism as a lottery over deterministic mechanisms that...

We introduce a two-sided, many-to-one matching with contracts model in which agents with unit demand match to branches that may have multiple slots available to accept contracts. Each slot has its own linear priority order over contracts; a branch chooses contracts by filling its slots...