the framework of ‘the new quantitative trade model.’ We complement theory with a simple two-stage estimating procedure …

mechanism considered in the paper is based on that multiproduct shipments allow splitting fixed costs per shipment across many … products and, therefore, reducing total shipment costs. As a result, more developed countries tend to have lower fixed costs …-product shipments in determining shipping costs …

of immobile residents. Investment is costly: Quadratic installation and de-installation costs limit the mobility of … and effects of changes in installation costs are ambiguous …

a real business cycle (RBC) model with habit formation and capital adjustment costs and that neglecting risk leads to … first-order approximated solution built by perturbation methods accounts for risk. We show that risk matters economically in …

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that … make external financing costly, the optimal contract between shareholders and employees involves some degree of risk … to rationalize with incentive theories of bonus pay - but support an important risk sharing motive. In particular …

uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to … capital income risk, we solve for the optimal consumption-saving choices and show that the expected welfare is increasing with … capacity, assuming a relative risk aversion degree larger than unity. Furthermore, we solve for attention choice and find that …

How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … risk of firm default …

asset prices and corporate default risk. Our model includes two empirically grounded nominal frictions: fixed nominal …