Recent years have seen a protracted debate on the "fiscal theory of the price level". This doctrine is based on the intertemporal government budget constraint, which says that the real value of the government debt equals the discounted value of future government surpluses. It is observed that...

Bubbles, such as money, cannot be valued in efficient equilibria in overlapping generations models (a borderline case aside). Analysts frequently attribute this result to the fact that if bubbles were valued, the bubble must eventually exceed the endowment of the young. This implies negative...

Recent years have seen a protracted debate on the "fiscal theory of the price level". This doctrine is based on the intertemporal government budget constraint, which says that the real value of the government debt equals the discounted value of future government surpluses. It is observed that...

In recent papers Matthew Rabin and Richard H. Thaler have argued that expected utility theory generates implausible predictions about individuals' attitudes toward small vs. large risks. Specifically, these authors argued that expected utility theory, plus the assertion that individuals reject...

Bubbles, such as money, cannot be valued in efficient equilibria in overlapping generations models (a borderline case aside). Analysts frequently attribute this result to the fact that if bubbles were valued, the bubble must eventually exceed the endowment of the young. This implies negative...

In recent papers Matthew Rabin and Richard H. Thaler have argued that expected utility theory generates implausible predictions about individuals' attitudes toward small vs. large risks. Specifically, these authors argued that expected utility theory, plus the assertion that individuals reject...