The paper investigates the existence of stationary sunspot equilibria (SSE) in the vicinity of a steady state in a general, one-step forward looking economic model of dimension n. It is shown that, whenever the steady state is indeterminate, for the associated deterministic dynamics--i.e., there...

This note is a rejoinder to Marjorie B. McElroy and Mary Jean Horney's (1990) reply. It discusses the scope of McElroy and Horney's previous results, and the possibility of estimating a Nash-bargained model from independent observation of threat points. Copyright 1991 by Economics Department of...

This paper analyzes ex ante and ex post moral hazard in car insurance using Dutch longitudinal micro data. We specify a dynamic model of an insuree's dynamic risk (ex ante moral hazard) and claim (ex post moral hazard) choices. We use this model to characterize the heterogeneous dynamic changes...

We develop an equilibrium lifecycle model of education, marriage and labor supply and consumption in a transferable utility context. Individuals start by choosing their investments in education anticipating returns in the marriage market and the labor market. They then match based on the...

This paper derives necessary and sufficient conditions for nonparametric transformation models to be (i) correctly specified, and (ii) identified. Our correct specification conditions come in a form of partial differential equations; when satisfied by the true distribution, they ensure that the...

Studies of inequality often ignore resource allocation within the household. In doing so they miss an important element of the distribution of welfare that can vary dramatically depending on overall environmental and economic factors. Thus, measures of inequality that ignore intra household...