This paper studies the Forward Premium Puzzle in a setting where investors doubt the specification of their models, and thus engage in robust portfolio strategies (Hansen and Sargent, 2008). It shows that an empirically plausible concern for model misspecification can explain the Forward Premium...

This paper studies exchange rate volatility within the context of the monetary model of exchange rates. We assume agents regard this model as merely a benchmark, or reference model, and attempt to construct forecasts that are robust to model misspecification. We show that revisions of robust...

This paper studies exchange rate volatility within the context of the monetary model of exchange rates. We assume that agents regard this model as merely a benchmark, or reference model, and attempt to construct forecasts that are robust to model misspecification. We show that revisions of...

China's carbon dioxide emissions from fossil fuel combustion had increased with an annual growth rate of 4.36% since 1980, hitting 1GtC in 2003. The global climate change issue is becoming more and more important and hence to be the fourth challenge for China's future energy development,...

This paper examines the contributions of population aging, mortgage innovation and historically low interest rates to the sharp rise in U.S. house prices and mortgage debt between 1994 and 2005. I construct an overlapping generations general equilibrium housing model and find that these three...

This paper studies the impact of economies of scale in transportation on a firm’s location decision. We relate the location problem to weighted Fermat problems and ramified optimal transportation problems and analyze how transport technologies affect the firm’s transportation and location...