Lawrence Robert Klein played a fundamental role in the genesis and development of econometric applications and forecasting. The work dedicated to forecasting earned him the 1980 Nobel Prize in Economic Sciences "for the creation of econometric models and their application to the analysis of...

Despite the fact that convergence has been a popular theme in applied economics since the seminal papers of Barro (1991)and Barro and Sala-i-Martin (1992), the very notion of convergence quickly becomes problematic from an academic viewpoint when we try and formalize a framework to think about...

Nonprofits are increasingly present in industries with a large for-profit sector, raising questions about their competitive advantage afforded by the nonprofit tax exemption. We estimate an equilibrium model of market structure for recreation/fitness centers to assess whether nonprofit and...

An enduring challenge that policy makers in open economies confront is the choice between three desirable, yet jointly unattainable objectives of maintaining a fixed exchange rate regime, free international capital flows and monetary policy independence. This paper examines these three tenets of...

We analyze a class of linear regression models including interactions of endogenous regressors and exogenous covariates. We show that, under typical conditions regarding higher-order dependencies between endogenous and exogenous regressors, the OLS estimator of the coefficient of the interaction...

In the classic Meltzer and Richard (1981) model, the canonical model of income redistribution in democracies, voters, heterogeneous on the sole dimension of idiosyncratic productivity,evaluate an income redistributive program that pays everyone a lump-sum income subsidy financed by a distorting...

Evidence supports the notion that those who grow up to be patient do better than those who do not. Parents can inculcate the virtue of delayed gratification in their children by taking the right actions. We study a model in which parents, for selfish reasons, invest resources to raise patient...

Central to the debate over U.S. international tax reform is understanding how multinational tax avoidance behavior might respond to a reduction in taxes on repatriated foreign-source earnings. Beginning in early 2009, several attempts have been made to re-institute a temporary 85 percent...

It seems that decisions in many voting bodies might be described by a two-stage decision in which the first stage is a bargaining process and the second is a vote that is often a formality. This does not mean that the voting is irrelevant, but, rather, that it limits the threats that may be made...

This paper studies the equilibrium determinacy properties of a simple interest rate rule in a small open economy subject to endogenous dollarization (the use of a foreign currency in transactions) and international financial frictions (proxied by a feedback from external debt to sovereign risk...