We extend Harsanyi's (1955) utilitarianism theorem to an infinite-horizon multi-generation setting: Under some additional assumptions, the Pareto condition is equivalent to utilitarian aggregation and the utilitarian weights are unique. Our results facilitate analysis of the properties of...

This paper applies recent advances in machine learning to a long-standing macroeconomics question by using density peaks clustering to improve estimation of aggregate price indexes. To measure a price index that properly accounts for consumer welfare, it is important to consider the effect of...

We study information aggregation in financial markets. We introduce two new stability concepts: absolute stability (sensitivity of rational expectations equilibrium prices to signals (bits) that are lost or garbled), and relative stability (the difference between prices in the rational...

Testing purchasing power parity (PPP) using black market exchange rate data has gained popularity in recent times. It is claimed that black market exchange rate data more often support the PPP than the official exchange rate data. In this study, to assess both the long run stability of exchange...

We propose an alternative notion of non-transferable utility (NTU) stability in matching models that relies on money burning. Our model captures an exchange economy with indivisible goods, fixed prices, and no centralized assignment mechanism. In these models, a non-transferable numeraire (e.g.,...

In the global insurance market, the number of product-specific policies from different companies has increased significantly, and strong market competition has boosted the demand for a competitive premium. Thus, in the present paper, by considering the competition between each pair of insurers,...

We study return predictability using a model of speculative trading among relatively overconfident competitive traders who agree to disagree about the precision of their private information. Although traders apply Bayes Law consistently, returns are predictable. In addition to trading on...

This Article proposes a new concept — “aggregate alienability” — as a lens by which to understand the complicated law regarding the validity of privately-imposed restraints on the alienability of real property. Modern scholars have tended to explain this law — which sometimes...

We estimate a model that allows for dynamic and interdependent responses of morbidity in different local areas to economic conditions at the local and national level, with statistical selection of optimal local area. We apply this approach to quarterly British data on chronic health conditions...

This paper focuses on a labor-supply-side story for the monetary transmission mechanism, which has received relatively little attention in the New Keynesian literature. To this end, I develop a heterogeneous-agent New Keynesian (HANK) economy where a nonlinear mapping from hours worked into...