reform and free trade and by thus enhancing macroeconomic efficiency at full employment. Second, the static output gain from …

by enhancing efficiency as if a relative price distortion were being removed through price reform, trade liberalization …

distribution into three main components: efficiency, amenities, and frictions. Higher efficiency and better amenities lead to … MSAs in the United States, we parametrize the model and empirically estimate efficiency, amenities and frictions …

an attempt to manipulate security prices to their benefit. This leads to incomplete risk-sharing, despite the existence … of complete markets and the absence of aggregate risk. When a fiscal union centralizes fiscal policy, security prices can …