In this paper, we present a directed search model of the housing market. The pricing mechanism we analyze reflects the way houses are bought and sold in the United States. Our model is consistent with the observation that houses are sometimes sold above, sometimes below and sometimes at the...

Using micro-level Census data, we document that investment across plants within the same firm is more dispersed than investment across firms. In an expansion, investment patterns across plants within a firm become even more dispersed while between-firm dispersion does not vary over the business...

Using a Markov-switching Bayesian likelihood approach, we examine the behavior of the Federal Reserve over the post WWII period. We estimate a medium-scale macroeconomic model, where monetary policy is chosen by a central bank endowed with a commitment technology, and where a regime-switching...

In contrast to standard trade theory, I document that locations facing more foreign competition in the U.S. have: higher job destruction rates, lower job creation rates, and thereby experience higher unemployment rates. To account for these facts, I introduce a simple trade model with...

Starting in the late 1990s, China undertook a dramatic transformation of the large number of firms under state control. Most small state owned firms were privatized or closed. In contrast, large state owned firms were corporatized and and merged into large industrial groups under the control of...

I study risk sharing arrangements in settings characterized with Knightian uncertainty. In general both the demand for insurance and risk perceptions are endogenous and interact in these settings. This paper attempts to identify the key mechanisms affecting insurance in stylized environments...

We explore the role of skill non-neutral productivity differences and barriers to technology adoption in explaining cross-country income differences. Using a model of directed technological change modied to include physical capital, technology diffusion and barriers to entry, and a new data set...

In this appendix, we present the details of the extended model with debt in our paper "Transitional Dynamics of Dividend and Capital Gains Tax Cuts." Section 1 presents the extended model and results. Section 2 presents the numerical algorithm to solve this model. Section 3 presents an...