We analyze a model in which agents endogenously decide whether to locate close to other members of the extended family, as opposed to different cities or states. The agents' decisions are affected by several factors including the nature of the shock process affecting incomes, initial wealth,...

We study a general class of models with social interactions that might display multiple equilibria. We propose an estimation procedure for these models and evaluate its efficiency and computational feasibility relative to different approaches taken to the curse of dimensionality implied by the...

We study a general class of models with social interactions that might display multiple equilibria. We propose an estimation procedure for these models and evaluate its efficiency and computational feasibility relative to different approaches taken to the curse of dimensionality implied by the...

This paper reviews several issues concerning an empirical analysis of the endogenous formation of preferences, as well as cognitive and psychological traits. In particular we show by means of examples how, with existing data, it is possible to identify empirically the distinct influence of...

This paper measures mismatch between job-seekers and vacancies in the U.S. labor market. Mismatch is defined as the distance between the observed allocation of unemployed workers across sectors and the optimal allocation that solves a planner’s problem. The planner’s allocation...

This paper uses a new and exhaustive dataset on the labor market outcomes of roughly 1,400 household heads surveyed through the New York Fed's Survey of Consumer Expectations. We use the data to examine the job search behavior of both employed and nonâ€employed individuals. The data have...

We compare the inflation expectations reported by consumers in a survey with their behavior in a financially incentivized investment experiment designed such that future inflation affects payoffs. The inflation expectations survey is found to be informative in the sense that the beliefs reported...