The past decade has seen the econometric implementation of macroeconomic multimarket fix-price models for a number of European countries. The procedure in use, the full information maximum likelihood method, unfortunately becomes very cumbersome and seems out of reach when additional features...

The paper studies the optimal tax-subsidy schedules in an economy where the only decision of the agents is to work, or not, with an application to the case of France. Copyright The Econometric Society 2005.

An overlapping generations model of social security with productivity and demographic shocks is studied. The authors focus attention on stationary long-run allocations. An allocation is interim optimal if there does not exist another feasible allocation that improves the expected welfare of all...

The authors analyze a model of optimal consumption and portfolio selection in which consumption services are generated by holding a durable good. The durable good is illiquid in that a transaction cost must be paid when the good is sold. It is shown that optimal consumption is not a smooth...