Like many other assets, housing prices are quite volatile relative to observable changes in fundamentals. If we are going to understand boom-bust housing cycles, we must incorporate housing supply. In this paper, we present a simple model of housing bubbles that predicts that places with more...

As events highlight deep divisions in attitudes between America and Europe, this is a very timely study of different approaches to the problems of domestic inequality and poverty. Based on careful and systematic analysis of national data, the authors describe just how much the two continents...

According to a standard principle in free-speech law, the remedy for falsehoods is more speech, not enforced silence. But empirical research demonstrates that corrections of falsehoods can backfire, by increasing people’s commitment to their inaccurate beliefs, and that presentation of...