We estimate a monetary policy rule for the US allowing for possible frequency de- pendence - i.e., allowing the central bank to respond differently to persistent innovations than to transitory innovations, in both the real-time unemployment rate and the real-time inflation rate. The estimation...

We apply the linearized present value model, which allows the log rent-price ratio to be decomposed into the expected present value of all future real interests rates, real housing premia, and real rent growth, to the housing market in 23 U.S. metropolitan areas from 1978 to 2011. Based on the...

We outline the basic method of analysis, similar to Judd (1985), that allows to show that for the paths of a continuum of independent — not necessarily i.i.d. — random variables certain properties can be assumed. In particular, we find that the assumption of a continuum of...

First a non-cooperative model of network formation is investigated where link formation is one-sided and information flow is two-way. For that model, the relationship between different notions of efficient networks is studied: Pareto optimal networks on the one hand and welfare maximizing...

In the cost sharing model with technological cooperation, we investigate the implications of a number of consistency requirements. In a context where the enforcing authority cannot prevent agents from splitting or merging their demands (in order to reduce their cost shares), the methods used...

The present paper examines zero-sum games that are based on a cyclic preference relation defined over anonymous actions. For each of these games, the set of Nash equilibria is characterized. When the number of actions is odd, a unique Nash equilibrium is always obtained. On the other hand, in...

This paper is an empirical investigation of inequality of education opportunities in the Middle East and North Africa (MENA). We use student scores from tests administered by the international consortium Trends in Mathematics and Science Study (TIMSS) for a number of MENA countries and over time...

This paper proposes a setting that allows for technological cooperation in the cost sharing model. Dealing with discrete demands, we study two properties: Additivity and Dummy. We show that these properties are insuffcient to guarantee a unit-flow representation similar to that of Wang (1999)....

The present work characterizes the unique Nash equilibrium for games that are based on a cyclic preference relation. In the Nash equilibrium of these games, each player randomizes between three specific actions. In particular, an alternative way of deriving the unique Nash equilibrium of the...

This paper explores the implications of the possibility of a shift in environmental damages on the participation in environmental treaties. Using a two-period model where the probability of a regime shift increases with the first-period emissions, we examine the issue of coalition formation...