In the Kehoe and Midrigan (2007) model, the persistence parameter of the real exchange rate is closely related to the measure of price stickiness in the Calvo-pricing model. When we employ this view, Rogo's (1996) 3 to 5 year consensus half-life implies that rms update their prices every 18 to...

Engel (1999) computes the variance of k-differences for each time horizon us- ing the method of Cochrane (1988) in order to measure the importance of the traded goods component in U.S. real exchange rate movements. The importance of traded goods should decrease as the horizon increases if the...

This paper develops a dynamic model of consumer search that, despite placing very little structure on the dynamic problem faced by consumers, allows us to exploit intertemporal variation in within-period price and search cost distributions to estimate the population distribution from which...

Level vector autoregressive (VAR) models are used extensively in empirical macroeconomic research. However, estimated level VAR models may contain explosive roots, which is at odds with the widespread consensus among macroeconomists that roots are at most unity. This paper investigates the...

We extend the fixed effects maximum likelihood estimator to a proportional hazard model with a flexibly parametric baseline hazard. We use the method to estimate a job duration model for young men, and show that failure to account for unobserved fixed effect causes negative schooling and union...

This study identifies the effects of economic factors that can be directly manipulated by public policy on women’s union-forming decisions. We jointly model transitions made by never-married women to cohabitation or marriage, cohabiting women to marriage or separation, and married women to...

In this study, we ask whether economic factors that can be directly manipulated by public policy have important effects on the probability that women experience long-lasting unions. Using data from the 1979 National Longitudinal Survey of Youth, we estimate a fivestage sequential choice model...