We study a model of network formation where the benefits from connections exhibit decreasing returns and decay with network distance. We show that the unique equilibrium network is a periphery-sponsored star, where one player, the center, maintains no links and earns a high payoff, while all...

Many economic and social networks share two common organizing features: (1) a core-periphery structure; (2) positive correlation between network centrality and payoffs. In this paper, we build a model of network formation where these features emerge endogenously. In our model, the unique...

This paper introduces a family of multi-period poverty measures derived from commonly used static poverty measures. Our measures trade-off poverty levels and changes (gains and losses) over time, and are consistent with loss aversion. We characterize the partial ranking over income dynamics...

This paper provides a model of how media environments affect political polarization. We first develop a model of how media environments, characterized by their levels of accessibility and variety of content, interact with citizens' ideological views and attitudes and political motivation. We...

This paper sheds light on the links between media and political polarization by looking at the introduction of broadcast TV in the US. We provide causal evidence that broadcast TV decreased the ideological extremism of US representatives. We then show that exposure to radio was associated with...

In the last decades, consumer debt experienced a marked increase in the United States, Latin America and other emerging countries, spurring a debate about the real costs and benefits of household credit. This paper explores the psychological costs of over indebtedness. Using a unique dataset...

In this paper we analyze the effect of school entry and exit in the Chilean market- oriented educational system. During the period 1994-2012, nearly 2,150 schools closed (more than 2,800 if pre-K and kindergarten centers are included), around one-fifth of the current stock of schools. At the...