This paper analyzes the general equilibrium effects of capital tax when there is a mandated minimum wage. The analysis is conducted in an inter-temporal search model in which firms post wages as in Burdett and Mortensen (1998). A(binding) minimum wage provides alower support for the distribution...

A central debate in applied macroeconomics is whether statistical tools that use minimal identifying assumptions are useful for isolating promising models within a broad class. In this paper, I extend the analysis of Chari, Kehoe, and McGrattan (2005) to compare four statistical...

We consider sufficient conditions for uniqueness in two-sided matching models with transfers. We analyse the strategy-proofness of allocation mechanism

The purpose of this paper is to develop a framework that allows one to distinguish between the extent to which differences in firm productivity are intrinsic and the proposition that higher paying firms employ more able workers. For this purpose, we adapt the equilibrium stochastic model of firm...

The weight of the average American adult male and female has increased by 16 and 14 pounds respectively and obesity rates have doubled since the early 1960s. Recent studies show these changes in weight can be attributed to the dramatic rise in the consumption of food away from home. We...

We model an environment in which different vintages of capital with their different productivities coexist. A reduction in the cost of investment induces investment in new capital which raises both measured capital and measured productivity simultaneously. We calibrate this model to...

This paper estimates a general stochastic process for labor income via indirect inference, by jointly using labor income data together with the information embedded in the dynamics of individual consumption. We extend earlier work in several directions. First, we do not restrict income shocks to...