We build a model that incorporates both labor supply and frictions and use it to assess the effects of various tax and transfer programs on aggregate employment and unemployment. In particular, we assess the debate between Prescott and Ljungqvist and Sargent about the relative importance of...

We develop a model featuring search frictions and a nondegenerate labor supply decision along the extensive margin, and argue that it does a reasonable job of matching labor market flows between employment, unemployment and out of the labor force. Persistent idiosyncratic productivity shocks...

We consider a decentralized equilibrium of a 1-region, global neoclassical growth model with non-renewable exhaustible resources and optimizing agents. The resource generates energy, which is essential for producing final output. Its use generates externalities by affecting the climate. The...

This paper constructs a dynamic general-equilibrium model of the world economy and the global climate system. The goal of the paper is to characterize quantitatively the transition of the world economy, including welfare assessments, to a steady state with zero emissions of carbon. There is a...