Property crime is today more widespread in Europe than in the United States, while the opposite was true during the 1970s and 1980s. In this paper we study the determinants of crime in a dynamic general equilibrium model with uninsured idiosyncratic shocks. We focus on Germany, and compute the...

This paper takes a slightly different approach and uses data from labor market flows to evaluate labor market dynamics during the time period in which unemployment benefits were extended by statute, July 2008 to May 2012. To do so, we develop a simple search model to study labor market dynamics....

Peck and Shell (2003) show that equilibrium bank runs are possible in the Diamond and Dybvig (1983)environment. We show that their result is an artifact of their restriction to direct mechanisms. That is, their bank contract is not an optimal one. We show that an indirect mechanism eliminates...