This paper focusses on survey expectations and discusses their uses for testing and modeling of expectations. Alternative models of expectations formation are reviewed and the importance of allowing for heterogeneity of expectations is emphasized. A weak form of the rational expectations...

Movements in aggregate and regional house prices are largely accounted for by movements in the rent-price ratio rather than movements in rents. Movements in rent-price ratios are correlated with trend deviations in household income and the rate of home ownership, both of which are at odds with...

We analyze a game of two-sided private information characterized by extreme adverse selection, and study a special case in the laboratory. Each player has a privately known strength and can decide to fight or compromise. If either chooses to fight, there is a conflict; the stronger player...

In market economies, agents who provide labor are distinct from investors who own assets. This paper highlights how such an quot;investor ownershipquot; arrangement mitigates an external finance problem. When agents are credit constrained, assigning asset ownership to investors, and hold up can...

In this paper we study the effect of reallocating an indivisible input across a population of production units on average output. We define the Average Redistributive Effect (ARE) as the effect of such a reallocation on average output. We consider the case where inputs are discretely-valued,...

This paper develops a new efficient estimator for the average treatment effect, if selection for treatment is on observables. The new estimator is linear in the first-stage nonparametric estimator. This simplifies the derivation of the means squared error (MSE) of the estimator as a function of...

To what extent are improvements in quality of life (material living levels, health, education, political and civil rights, happiness, and the like) associated with economic growth? International comparisons of quality of life (QoL) conditions almost always point to a strong positive association...

This paper investigates the source of different rates of technology diffusion when economies differ in borrowing constraints arising from the quality of financial institutions. I introduce borrowing constraints to the vintage human capital model, to demonstrate slower technology adoption and...

This paper considers forecast averaging when the same model is used but estimation is carried out over different estimation windows. It develops theoretical results for random walks when their drift and/or volatility are subject to one or more structural breaks. It is shown that compared to...

This paper is a case study of the use of public use administrative data for the estimation of empirical relations when key dependent variables are not available in the data. It is shown that the out-of-hospital mortality rates can be identified using the patient discharge data without...