We reappraise the robustness of sunspot effects in overlapping-generations models. Azariadis’s well-known example economies have stationary, deterministic fundamentals (preferences, technologies, and endowments), yet sunspots affect multiple equilibria. And those equilibria are robust to...

We consider procedures that use randomness to make a decision that involves several individuals. We asked subjects to compare the fairness of six pairs of seemingly equivalent procedures. We propose a classification of subjects into two categories: those who are “emotional” in the sense...

This paper extends the eductive learning approach in settings with non-atomistic agents. It shows the connection between the characterization of rationalizable sets by Basu (1991) and the seminal result by Guesnerie (1992) in the context of Cournot oligopoly models.

We model a single-club-heterogeneous-consumer-exogeneous-income economy as an aggregative public good game. Under common assumptions, if club quality functions are homogeneous of positive degree in the club facility investment and use, an unique Nash equilibrium exists.

According to Kim and Lee (1997), property taxes as opposed to capital gain taxes and taxes on rent endanger dynamic efficiency. The present paper shows that the choice of the tax base is immaterial. What counts is whether the taxes eliminate the after-tax rent. Empirical evidence suggests that...

Since Thaler (1981), we have lived with the uncomfortable stylized fact that many humans choose strictly dominated actions in intertemporal choice experiments. We designed an experiment to probe the reasons for the apparently suboptimal behavior, and we find that the classic Fisher (1930)...

We use a multiple price list approach with real payments to elicit long-term time preferences on a sample of French farmers. Elicited individual discount rates vary with the time delay, which supports the existence of a reversal effect in long-term time preferences, and increase with rewards,...

This paper investigates the relationship between economic growth and a fully funded social security system in an overlapping generations model with family altruism. It is shown that funded social security may harm growth if there are operative bequests within the family.

We study exchanges between three overlapping generations with non-dynastic altruism. The middleaged choose informal care provided to their parents and education expenditures for their children. The young enjoy their education, while the old may leave a bequest to their children. Within each...

We introduce an envelope condition method (ECM) for solving dynamic programming problems. The ECM method is simple to implement, dominates conventional value function iteration and is comparable in accuracy and cost to Carroll’s (2005) endogenous grid method. Codes are available.