[This item is a preserved copy. To view the original, visit http://econtheory.org/] We consider a (pure) public goods provision problem with voluntary participation in a quasi-linear economy. We propose a new hybrid solution concept, the free-riding-proof core (FRP-Core), which endogenously...

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...

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...

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...

This paper presents evidence on the speed of evolution (or lack thereof) of a wide range of values and beliefs of different generations of European immigrants to the US. The main result is that persistence differs greatly across cultural attitudes. Some, for instance deep personal religious...

This paper develops an affine model of the term structure of interest rates in which bond yields are driven by observable and unobservable macroeconomic factors. It imposes restrictions to identify the effects of monetary policy and other structural disturbances on output, inflation, and...

We evaluate alternative models of the volatility of commodity futures prices based on high-frequency intraday data from the crude oil futures markets for the October 2001-December 2012 period. These models are implemented with a simple GMM estimator that matches sample moments of the realized...

This paper provides an economic framework for examining how economic openness affects nationalism. Within a country, a region's level of nationalism varies according to its economic interests in its domestic market relative to its foreign market. A region's nationalism is strongest if the...