A leading explanation of aggregate stock market behavior suggests that assets are priced as if there were a representative investor whose utility is a power function of the difference between aggregate consumption and a "habit" level, where the habit is some function of lagged and (possibly)...

There exists significant dispersion in output prices between firms in many industries. As a consequence the value of output is not necessarily a good measure of the quantity of output. Estimation of production functions for these types of goods is thus challenging if quantities and prices of...

This paper develops and estimates a search model in which career-specific and firm-specific matches determine job mobility and wage growth. Each worker-firm and worker-career relationship is characterized by a match that evolves stochastically over time. At each period, a worker has three...

This paper investigates whether the financial markets are relatively more efficient than banks in the UK than in continental Europe. The UK channels a larger fraction of the financial flow to the firms through financial markets than continental Europe but this is explained by larger firms in the...

We develop a modeling framework to examine household labor supply decisions that includes the husbandÂ’s and wifeÂ’s choice of whether to behave cooperatively. Our model is static and, as opposed to most applications of cooperative models to household labor supply decisions, allows for...

This paper estimates a life cycle model of labor supply, retirement and savings behavior in which future health status and wages are uncertain. Individuals face a fixed cost of work and cannot borrow against future labor, pension, or Social Security income. The method of simulated moments is...

Gender wage differentials, conditional on observed productivity characteristics, have been considered a possible indication of prejudice against women in the labor market. However, there is no conclusive evidence on whether these differentials are due to labor market discrimination or to...

This paper estimates a structural model of firm growth and partially sunk investment. In the model, the firm's optimal adjustment keeps the gap between the actual capital stock and its frictionless counterpart between two boundaries. We show that any two quantiles of output growth conditional on...

This paper presents a method to estimate the effects of a counterfactual policy intervention in the context of dynamic structural models where all the structural functions (i.e., preferences, technology, transition probabilities, and the distribution of unobservable variables) are...

Within the independent private-values paradigm, assuming asymmetric bidders,using the principle of dynamic programming, and employing the notion of Bayes-Nash equilibrium, we demonstrate nonparametric identification of the data-generating process of the sequence of winning prices at multi-unit,...