We study financial risk taking via standard and sophisticated financial investments. Using survey data on 2,047 individuals, we find that standard investments are strongly associated with both actual and perceived financial literacy for men, but only with actual literacy for women. Sophisticated...

In recent years models with a nested constant elasticity of substitution utility function and heterogeneous firms involved in some form of competition have become popular in the international trade literature. This paper considers one particular model of this class — with firms competing in...

A simple Monte Carlo calibration approach is implemented in a GE model with uninsurable employment risk to quantitatively study the optimal replacement rate of a public unemployment insurance (UI) scheme. The optimal UI sampling distribution is found to be bimodal.

This paper suggests that a model in which firms face credit constrains on hiring labor can explain both the behavior of the labor wedge and the “jobless recoveries” phenomenon of the last three recessions. Using the corporate credit spread as a measure of firms' credit conditions, I show...

In a general equilibrium model with at least three goods, a perfectly price-discriminating monopoly (PDM) selects an inefficient production plan even if consumers are homogenous, their preferences are representable by quasi-linear utilities, and their characteristics are known to the monopolist....

Most quantitative tools for assessing competitive effects of mergers rely heavily on recapture ratios (also known as aggregate diversion ratios). Recapture ratios measure the proportion of customers switching away from a product that is captured by other products within the market rather than...

This study investigates the predictability of stock market returns using a novel corporate investment measure that captures the lumpiness of firm-level investment. We find that the proportion of firms with investment spikes ("spike") is a strong predictor of excess stock returns. Specifically,...

We investigate the role personality plays in Finitely Repeated Prisoner’s Dilemma (FRPD) games. Even after controlling for demographic factors such as race, course of study, and cognitive ability, we find that cooperative behavior is significantly related to the Big Five personality trait...

We consider preference evolution in a class of conflict models with finite populations. We show that whereas aggregate conflict effort is always the same in evolutionary equilibrium, larger populations have greater individual subjective costs of conflict effort.