The sociological literature indicates that within diverse communities, agents create externalities on each other when they consume market goods to express their identity. We provide a model in which local governments use taxation and agents adjust social networks to address these identity...

Mitigating climate change is a global public good to which many different countries contribute. The incentive of each country to contribute through the provision of effective climate policies depends on other countries’ contributions. Climate policy risk spillovers arise when expected changes...

I propose a novel channel of international risk sharing: the common currency channel. I theoretically show how the central bank of a currency union can use the common currency to insure member countries against consumption risk from idiosyncratic productivity shocks. A trade-off between risk...

I propose a novel channel of international risk sharing: the common currency channel. I theoretically show how the central bank of a currency union can use the common currency to insure member countries against consumption risk from idiosyncratic productivity shocks. A trade-off between risk...

The sociological literature indicates that within diverse communities, agents create externalities on each other when they consume market goods to express their identity. We provide a model in which local governments use taxation and agents adjust social networks to address identity expression...