This paper studies the stability of a finite local public goods economy, where a jurisdiction's choice of the public good is given by an exogenous decision scheme. Although it is often assumed in local public good economies with a continuum of agents, this feature is new in the finite case. A...

This paper analyzes the linear regression model y = xb+e with a conditional median assumption Med( e | z)=0 where z is a vector of instruments. Added complication arises due to the censoring of the outcome y. We treat the censored model as a model with interval-observed outcome thus obtaining...

The Ellsberg paradox demonstrates that people's belief over uncertain events might not be representable by subjective probability. We argue that Uncertainty Aversion may be viewed as a case of "Rule Rationality''. This paradigm claims that people's decision making has evolved to simple rules...

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We consider a simple model of a firm acting strategically on behalf of its shareholders. The price normalization problem arising in general equilibrium models of imperfect competition is overcome by using the concept of real wealth maximization. This concept is based on shareholders' aggregate...

We consider cooperative arrangements in a fixed community where agents may change partners over time and where public communication is possible. Public monitoring and exogenous information flows are absent: any player's action in any period is observed only by the agent himself and his partner...

This paper analyzes the equilibrium dynamics of an AK-type endogenous growth model with vintage capital. The inclusion of vintage capital leads to oscillatory dynamics governed by replacement echoes, which additionally influence the intercept of the balanced growth path. These features, which...

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