In this paper I develop an empirical framework for the analysis of large-scale policies, and apply it to study the effects of school finance reform on the Detroit metropolitan area. Exploiting the school finance reform in Michigan 1994, I estimate a general equilibrium model of multiple...

This paper attempts to identify and isolate the channels by which inflation shocks effect the predictable returns available from currency speculation. We apply a general no--arbitrage based model to decompose the risk premium into inflation and real risk and their interactions. Using two...

We study an economy with competitive commodity markets and exclusive pairwise contractual relations with moral hazard, where both the principal and the agent can be risk averse. We show existence of equilibria and their generic constrained suboptimality,

This paper proposes an explanation for why efficient reforms are not carried out when losers have the power to block their implementation, even though compensating them is feasible. We construct a signaling model with two-sided incomplete information in which a government faces the task of...