The standard model of international trade based on Dixit-Stiglitz theory of monopolistic competition originally developed by Helpman and Krugman is extended to allow for costly search and matching between producers of different varieties and retailers. This extension provides a new way of...

This paper proposes a model of altruism with endogenous labor supply. A full characterization of the family's choices of consumption and leisure is provided. Initially, work effort is assumed to be publicly observed; this assumption is later relaxed, allowing for privately observed effort. It has...

We prove the folk theorem for the Prisoner's dilemma using strategies that are robust to private monitoring. From this follows a limit folk theorem : when players are patient and monitoring is sufficiently accurate, (but private and possibly independent) any feasible individually rational payoff...

We apply bootstrap methodology to unit root tests for dependent panels with N cross-sectional units and T time series observations. More specifically, we let each panel be driven by a general linear process which may be different across cross-sectional units, and approximate it by a finite order...

We study competitive economies with adverse selection and fully exclusive contractual relationships. We consider economies where agents are privately informed over the probability distribution of their endowments, and trade to insure against this uncertainty. As in Prescott-Townsend (1984), we...

We study the question of implementing Arrow-Debreu equilibrium allocations in infinite-time economy under uncertainty by sequential trading of infinitely-lived securities. The crucial aspect of implementation is the choice of feasibility constraints on agents' portfolio strategies. The main...

This paper presents an endogenous growth model in which the research activity is financed by intermediaries that are able to reduce the incidence of the researcher's moral hazard. Financial activity is growth promoting because it makes research productivity higher. It is found that a subsidy to...

This paper develops a dynamic general equilibrium model in order to study the impact of two different monetary policy shocks. Monetary policy is either conducted by open market operations or specified as exogenous money growth. In our model, prices are sticky and real balances yield utility. In...

My paper proposes a new method to estimate duration models. In particular, it shows that the integrated hazard yields moment functions that solve the following, recognized estimation problems: <br> 1. Van den Berg notes in the forthcoming Handbook of Econometrics that we need panel data for robust...

Discrete choice models have been used to describe imperfect competition between firms selling horizontally differentiated products. In all theoretical models, the indirect utility function is assumed to be linear in income so that there is no income effect. We consider here a situation in which...