We consider the economy consisting of n agents and m heterogenous objects where the seller benefits v from objects. Our study focuses on the multi-object allocation problem with monetary transfers where each agent obtains at most one object (unit-demand). In the situation with arbitrary n, m and...

Following the shocks of the COVID-19 pandemic, the economy may be significantly changed relative to the pre-pandemic world. One critical shift induced by the COVID- 19 pandemic is a need for physical distance (at least 6 feet apart) between workers and customers. In this study, we examine the...

We consider the problem of allocating multiple units of an indivisible object among a set of agents and collecting payments. Each agent can receive multiple units of the object, and has a (possibly) non-quasi-linear preference on the set of (consumption) bundles. We assume that preferences...

Shortages in organs for transplantation have resulted in a renewed interest in designing incentive policies to promote organ supply. The donor‐priority rule, which grants priority for transplantation based on deceased organ donor registration status, has proven to be effective in both theory...

This paper proposes a new mechanism to explain resource misallocation in developing countries: the high commuting costs within cities that prevent workers from accessing formal employment. To test this mechanism, the paper combines a rich collection of microdata and exploits the opening of new...

The "technology bubble" in the late 1990s, the financial crisis in 2007/2008, and the Eurozone crisis generated significant losses across several asset classes. The objective of this paper is to investigate risk premia factors such as size, value, momentum, carry, quality, and low volatility and...

We provide a novel mechanism that delivers efficient provision of public goods in an economy that may display warm-glow preferences. No information about the fundamentals of the economy is required on the mechanism designer's side, so the mechanism is informationally decentralized. The mechanism...

This paper investigates how the institutional arrangement in China's financial market increase the cost of capital for underdeveloped areas. I show that fiscal capacity results in higher leverage but not superior profitability for local government financing vehicles. Infrastructure in fiscally...

Traditional gender norms that assume gendered household resource allocation are persistent. What happens when society-wide gender norms begin to change by the media influence? Collecting all feminism-related newspaper articles in the past 10 years and instrumenting region-year variations of...

Under an offer of settlement' rule, a party to a lawsuit may make a special offer to settle with the other party, such that if the other party rejects this offer, then this offer (unlike an ordinary offer) becomes part of the record in the case and may affect the allocation of litigation costs....

Empirical evidence in Dauth et al. (J Eur Econ Assoc, 2021) suggests that industrial robot adoption in Germany has led to a sectoral reallocation of employment from manufacturing to services, leaving total employment unaffected. We rationalize this evidence through the lens of a general...

We consider the problem of allocating multiple units of an indivisible object among a set of agents and collecting payments. Each agent can receive multiple units of the object. We assume that preferences exhibit both nonincreasing marginal valuations and nonnegative income effects.We propose a...

During the last thirty years, U.S. bank concentration has been growing over time, as has bank capital ratio, which has been rising and already well above the minimum capital requirement. To explain these findings, I develop a tractable dynamic model with two key elements: financial constrained...

In this paper we show that motherhood triggers changes in the allocation of talent in the labor market beyond the well-known effects on gender gaps in employment and earnings. We use an event study approach with retrospective data for 29 countries drawn from SHARE to assess the labor market...

Sender conveys scarce information to a number of receivers to maximize the sum of receiver payoffs. Each receiver’s payoff depends on the state of the world and an action she takes. The optimal action is state contingent. Under mild regularity conditions, we show that the payoff of each...

We develop a theory that addresses the existence of stable vaccine allocations in a political economy where vaccination offers both private and social benefits. These are allocation policies that a political leader can enforce without losing their popularity. We show that a stable allocation may...

This paper quantifies the impact of capital misallocation on the loss in total factor productivity (TFP), arising from financial frictions. A two-period model is built to map the dispersion in the cross-sectional borrowing costs into the TFP loss. Equity cost of capital, which closely relates to...

I find substantial differences in the extent of misallocation across male and female-led establishments spanning many low and middle-income countries. In South American and South Asian countries female establishments face higher distortions to operating a business, whereas in Eastern European...

What accounts for income per capita and total factor productivity (TFP) differences across countries? We study resource misallocation across heterogeneous production units in a general equilibrium model where establishment productivity and size are affected by policy distortions. We solve the...

We consider the problem of allocating a single object to the agents with payments. Agents have preferences that are not necessarily quasi-linear. We characterize the class of rules satisfying pairwise strategy-proofness and non-imposition by the priority rule. Our characterization result remains...

The US financial sector has become a magnet for the brightest graduates in the science, technology, engineering and mathematical fields (STEM). We provide quantitative bases for this anecdotal fact for the US, over the period 1980-2019 and with a specific focus on the last decade where...

Recent research has argued that the COVID-19 shock has also brought about a reallocation shock. We examine the evidence for such an occurrence in the United States, taking a broad perspective. We first consider micro data from CPS and JOLTS; there is no noticeable uptick in occupation or sector...

This study investigates the impact of the current US–China trade war on resource allocation using monthly panel data relating to the transfer of local governmentcontrolled land. The results show that the trade war changed local governments’development strategy. As the trade war expanded,...

We propose an accounting framework that maps the dispersion of borrowing costs along the debt maturity structure to the misallocation of productive resources. Specif- ically, we decompose the effects of credit misallocation into two distinct channels: limited access to debt finance (scale...

We analyse the allocation of face masks with the goal of minimizing mortality during a pandemic through airborne transmission. When the initial distribution of masks is private information, the optimal allocation achieved by a sophisticated mechanism in most cases maximizes the coverage rate by...