This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare. Individual income is assumed to follow a stochastic process with two (unobserved) components, an i.i.d. component representing measurement error or transitory income shocks and an...

Market design matters when heterogeneous borrowers roll over loans, facing funding shocks. Borrower anonymity is a key feature of various financial markets, such as short term, interbank lending markets. We show that anonymous markets experience systemic runs for large shocks, but provide...

Lower one- or two-dimensional coordination, or potential games, are popularly used to model interactive behavior, such as innovation diffusion and cultural evolution. Typically, this involves determining the "better" of competing solutions. However, examples have demonstrated that different...