It is known that the incompleteness of asset markets causes inefficiency in almost every equilibrium. Yet unexplored is the "size" of this inefficiency. The size of a Pareto improvement is the total willingness to pay for it, out of current consumption. Inefficiency is the maximum size of any...

A classic characterization of competitive equilibria views them as feasible allocations maximizing a weighted sum of utilities. It has been applied to establish fundamental properties of the equilibrium notion, such as existence, determinacy, and computability. However, it fails for economies...

This research explores the long-run effect of industrialization on the process of development. In contrast to conventional wisdom that views industrial development as a catalyst for economic growth, highlighting its persistent effect on economic prosperity, the study establishes that while the...

This research explores the effects of within-group heterogeneity on group-level productivity. It establishes that observed genetic diversity of 230 worldwide ethnic groups, as well as predicted genetic diversity of 1,331 ethnic groups across the globe, has a hump-shaped effect on economic...

The research explores the effect of industrialization on human capital formation. Exploiting exogenous regional variations in the adoption of steam engines across France, the study establishes that in contrast to conventional wisdom that views early industrialization as a predominantly...

This research empirically establishes that the emergence, prevalence, and recurrence of civil conflict in the modern era reflect the long shadow of prehistory. Exploiting variations across contemporary national populations, it demonstrates that genetic diversity, as determined pre- dominantly...