The organization of workers at an establishment into a trade union is a dynamic process. Establishments that have recently been unionized are relatively likely to switch back into nonunion status, compared with long-unionized establishments. This paper develops a model of learning by workers...

This paper studies the long-run effects of anticipated inflation on output and welfare within a search-theoretic framework. We allow money-holders to choose the intensities with which they search for trading partners, so the frequency of trades is endogenous. We consider the standard pricing...

Most economic activity occurs in cities. This creates a tension between local increasing returns, implied by the existence of cities, and aggregate constant returns, implied by balanced growth. To address this tension, we develop a theory of economic growth in an urban environment. We show how...

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...

Housing economists have questioned whether current US tax and government mortgage policy actually fosters homeownership. In this paper we examine this question interms of a dynamic general equilibrium model with heterogeneous agents. The model allows households to make saving and shelter...

Mankiw and Reis (2002) have proposed sticky information as an alternative to Calvo sticky prices in order to model the conventional view that i) inflation reacts with delay and gradually to a monetary policy shock, ii) announced and credible disinflations are contractionary and iii) inflation...

This paper develops a model of a monetary economy in which individual firms are subject to idiosyncratic productivity shocks as well as general inflation. Sellers can change price only by incurring a real menu cost.' We calibrate this cost and the variance and autocorrelation of the...

We describe new evidence that technological change is biased toward producing durables goods. Existing evidence in favor of the importance of change to growth and business cycles is based on the price deflators for investment and consumption goods. Our evidence is based on additional data,...