This paper studies implementation in a principal-agent model of adverse selection. We explore ways in which the additional structure of principal agent models (compared to general implementaion models) simplifies the implementation problem. We develop a connection between the single crossing...

This study investigates whether models of forward-looking behavior explain the observed patterns of heavy drinking and smoking of men in late middle age in the Health and Retirement Study better than myopic models. We develop and estimate a sequence of nested models which differ by their degree...

The evolution of education spending in California has received plenty of attention by both academics and practitioners after this state's education finance reform of the 1970's. The impact on public education spending of the demographic trends associated with immigration has not been thoroughly...

I propose a centralized clearinghouse for college admissions in which students can signal enthusiasm by commitment, like early-decision programs. Furthermore, students can specify financial aid in their preferences and they can be matched with multiple colleges at the same time. This...

We develop an international financial market model in which domestic and foreign residents differ in their beliefs about the information content in public signals. We determine how informational advantages by domestic (foreign) investors in the interpretation of home (foreign) public signals...

This article studies how investors' differences of opinion affect liquidity and asset prices. We construct a dynamic general-equilibrium economy in which one population of excessively optimistic investors is subject to endogenous funding constraints that prevent default due to ex-ante limited...

When investors disagree, speculation between them alters equilibrium prices in financial markets. Because managers maximize firm value given financial market prices, disagreement alters firms' value-maximizing investment policies. Disagreement therefore impacts aggregate investment, consumption,...