We find that the short-term deviations from long-run consumption-wealth relationship (cay) forecast stock market returns and serve as a conditioning variable in the capital asset pricing model (CAPM) for explaining the cross-section of stock returns for the United Kingdom and Japan. Our...

We construct a sticky-price open macro model in the spirit of Clarida and Gali (1994), and use it to motivate a structural VAR analysis of the real and nominal exchange rates for Mexico and Thailand in the aftermaths of their currency crises in 1994 and 1997. We identify the model¡¯s...

This paper explores the extent to which the increase in the college enrollment rate of women in the U.S. from 1955 to 1980 can be accounted for by the change in the female college wage premium. I develop and calibrate a dynamic overlapping generations model with discrete schooling choice. I find...