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We provide a framework for inference in discrete games that involve multiple decision makers and use it to study airline market structure in the US. We make inferences on a ``class of models'' rather that looking for point identifying assumptions that pin down a unique model. We extend the...
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value theory, the model determines the level of CEO pay across firms and over time, and the pay-sensitivity relations. We …
Persistent link: https://www.econbiz.de/10005051232
Persistent link: https://www.econbiz.de/10005069453
the consumption of food away from home. Our theory is also consistent with the patterns of time use on market activities …
Persistent link: https://www.econbiz.de/10004977912
Detailed macroeconomic data to accompany the article in the Review of Economic Dynamics
Persistent link: https://www.econbiz.de/10005048002
Entrepreneurs often face undiversifiable idiosyncratic risks from their business investments. Motivated by this observation, we extend the standard real options approach to investment to an incomplete markets environment and analyze the joint decisions of business investments, consumption-saving...
Persistent link: https://www.econbiz.de/10005090734
This paper investigates the role of discount rate heterogeneity for wealth inequality. The key idea is to infer the distribution of preference parameters from the observed age profile of wealth inequality. The contribution of preference heterogeneity to wealth inequality can then be measured...
Persistent link: https://www.econbiz.de/10005090786
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A central puzzle for asset pricing theory is that stock prices are much more volatile than corporate dividends. One …
Persistent link: https://www.econbiz.de/10005090905
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...
Persistent link: https://www.econbiz.de/10005069227