Our goal in this chapter is to explain concretely how to implement simulation methods in a very general class of models that are extremely useful in applied work: dynamic discrete choice models where one has available a panel of multinomial choice histories and partially observed payoffs....

We develop an endogenous growth model where data drives innovation. In this model, big data fosters quality improvements by influencing the likelihood and magnitude of successful quality-enhancing innovations. It also promotes variety innovation through the efficient allocation of labor as a...

In this thesis, I explore the topic of chief executive officer (CEO) compensation in UK publicly traded firms. My objective is threefold. First of all, I investigate debt-holders‟ reaction to CEO compensation in terms of the cost of debt financing. Secondly, I examine the possible link between...

Cooperation between individuals requires the ability to infer each other’s mental states to form shared expectations over mutual gains and make cooperative choices that realize these gains. From evidence that the ability for mental state attribution involves the use of prefrontal cortex, we...

Convergent evidence for detrimental effects of punishment on cooperation has been obtained in a wide variety of environments, ranging from American students facing punishment in laboratory experiments, to Israeli parents facing fines for arriving late to their child’s day care. We show here...

Research in economics and psychology has established that informal non-monetary sanctions, particularly expressions of negative emotion or disapproval, can enforce fair economic exchange. However, scholars are only beginning to understand the reasons non-monetary sanctions affect economic...