In the recent literature on economic growth there is disagreement over the relationship between growth and volatility and their relative benefits and costs in welfare terms. An analytical resolution of this issue, which has serious implications for domestic and international development...

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This paper examines group formation in group-credit contracts recently popular in credit programs for the poor. The joint-liability in these contracts induces a correlation between the choice of partner and of repayment strategy. We show that this leads to non-monotone matching patterns, which...

We consider estimates of the parameters of GARCH models of daily financial returns, obtained using intra-day (high-frequency) returns data to estimate the daily conditional volatility. We obtain asymptotic properties of the estimators and offer some simulation evidence on small-sample...

For the assignment game, we analyze the following mechanism: sellers, simultaneously, fix their prices first; then buyers, sequentially, decide which object to buy, if any, among the remaining objects. The first phase of the game determines the potential prices, while the second phase determines...

A method is proposed for the consistent nonparametric estimation of conditional probability and probability density functions along with associated gradients when both the conditioned and conditioning variables are categorical, continuous, or a mixture of both types. The method builds on the...

The paper proposes an empirical framework with endogenous flight frequency and quantity decisions on an airline market. The framework is built around the hypothesis that passengers value not only the ticket price but also the cost of delay associated with an airline. At sample mean values, the...

We propose a multi-agents adverse selection version of Townsend's (1979) model of costly audits where the agents' types are correlated. Audits are used because agents have a limited ability to bear risk so that the Full Surplus Extraction (FSE) scheme a la Cremer and McLean (1985,1988) and...

This paper characterizes the organization of the U.S. retail trade sector by comparing establishment sizes and numbers across cities with different populations. In most two digit retail trade industries, large cities have larger establishments but fewer establishments per capita than do small...

In economic models, it is usually assumed that agents aggregate their private and all available public information correctly and completely. In this experiment, we identify subjects' updating procedures and analyze the consequences for the aggregation process. Decisions can be based on private...