We propose a theory linking imperfect information to resource misallocation and hence to aggregate productivity and …

Obstfeld and Rogoff (2000) have reinvigorated an old literature on the link between home bias in the goods market and … home bias in the asset market by arguing that trade costs in the goods market can account for the observed portfolio home … different expenditure allocation across countries, which leads to different inflation rates when measured in the same currency …

theory of law, our finding that the public courts do not automatically generate efficient rules is disappointing, since it … strongly influenced by economic considerations and explicable in economic terms, is evidence that economic theory has a major …

We introduce a rational choice theory that allows for many forms of imperfect perception, including failures of memory …, selective attention, and adherence to simplifying rules of thumb. Despite its generality, the theory has strong, simple, and … (stochastic) consequences of their available choices. Our theory separately identifies two distinct "framing" effects: standard …