We analyse the derivation of optimal monetary policy under discretion and commitment when lagged expectations appear in the Phillips curve, making use of the comparatively simple MSV approach which does not require transformation of the model into state-space form.

This paper presents the results of an experiment where an unequal wealth distribution was created and then subjects could act to change this wealth distribution. Subjects received money by betting and possibly by arbitrary (undeserved) gifts; they could then pay to reduce, redistribute and, in...

This paper investigates the dynamic aspects of poverty and anti-poverty interventions, particularly focusing on promotional effects, i.e., the effects of helping the poor escape poverty and protective effects, i.e., the effects of preventing the non-poor from slipping into poverty. We test the...

In this article, we report the results of an empirical study of the impact of school inputs on pupils` performance in private (independent) schools in the United Kingdom. We use a new school-level panel dataset constructed from information provided by the Independent Schools Information Service...

We construct a dynamic epistemic model for extensive form games, which generates a hierarchy of beliefs for each player over her opponents` strategies and beliefs, and tells us how those beliefs will be revised as the game proceeds. We use the model to analyze the implications of the assumption...

Proposals are often made to tax goods which are environmentally damaging. Many such goods are consumed both directly by households and industry at large: for example, carbon-intensive fuel, waste water or congested road space. This paper adopts a tax-reform setting to evaluate such a policy. The...

Team formation will often involve a coordination problem. If no-one else is contributing to a team, there is little point in an agent exerting any effort. Similarly, once a team is formed, an agent within the team will not leave, as to do so would result in team collapse; non-contributing agents...

This paper shows how graphs can be used to calculate expected waiting times in models of equilibrium selection. It also shows how reducing the state space can simplify the calculations both of waiting times and selected equilibria. The results are applied to potential games and games with...

Incentive contracts for gatekeepers who control patient access to specialist medical services provide too weak incentives to investigate cost further when expected cost of treatment is greater than benefit. Making gatekeepers residual claimants with a fixed fee from which treatment costs must be...

The large-scale reform of the state-owned sector and the development of a private sector in the 1990s changed the nature of employment in urban China. The system of allocated, lifelong jobs (the iron rice bowl) that had previously prevailed under state planning was eroded, permitting more labour...