We develop an heterogeneous agent model of consumption and health choices in order to estimate the effect of heath status in the marginal utility of consumption. We use micro data from the HRS, PSID, and CEX to identify the parameters of interest from the observed consumption growth for...

The paper explores to what extent demand shocks can solve the open economy puz- zles. To this purpose, we pose a shopping model structure a la Bai, R 퀱os-Rull, and Storesletten (2011) on top of an otherwise standard two-country international real busi- ness cycle model. Shopping for goods...

In this paper we produce a theory of partial default applicable to sovereign debt. The theory uses Markovian equilibria and the notion that circulating unpaid coupons of any given country courtail its productive capabilities. As a consequence no issues of equilibrium selection appear in the...

Cross-sectional data show that money holding differs significantly over household consumption and age. Liquidity demand for money (i.e., money holding per dollar of consumption) decreases as household consumption increases. It also increases with household age conditional on the level of...

In this paper, we ask to what extent changes to the age and sex structure of the population account for the changes in the marriage behavior observed in the United States in the last century (from 1900 to 1980). The decrease in mortality, especially for women, and the changes in immigration...