This paper presents a model that provides an explanation, based on regime switching in the real interest rate and learning, of why tests based on stock adjustment models, Euler equations, or decision rules—which emphasize short-run fluctuations in inventories and the interest rate—are...

This paper examines how estimates of the deterrent effect of capital punishment depend on alternate choices of assumptions concerning the homicide process. Specific models of the homicide process represent bundles of these assumptions, which involve the unobserved heterogeneity, the relevant...