We propose a computational model to study (the evolution of) post-secondary education. "Consumer" who differ in quality shop around for desirable colleges or universities. "Firm" that differ in quality signal the availability of their services to desirable students. Colleges and universities, as...

We propose a computational model to study (the evolution of) post--secondary education. "Consumers" who differ in quality shop around for desirable colleges or universities that also differ in quality. We study the dynamics and asymptotics for three nested variants of this matching model: the...

We propose a computational model to study (the evolution of) post-secondary education. “Consumers” who differ in quality shop around for desirable colleges or universities. “Firms” that differ in quality signal the availability of their services to desirable students. As long as they...

In this paper we evaluate the empirical relevance of learning by private agents in an estimated medium–scale DSGE model. We replace the standard rational expectation assumption in the Smets and Wouters (2007) model by a constant gain learning mechanism. If agents know the correct structure of...

This paper contains a study of stochastic stability of the development trap in a model of economic growth when the production function is subject to externalities and, as a result, the development trap steady state ins indeterminate. In the presence of indeterminacy, sunspot equilibria can...

In their recent paper, Boldrin and Montes (2005) analyze the “return on human capital investment” theory and show that if borrowing for education is not possible, then a combined public education and pension system that uses lump sum taxes and transfers can replicate the first-best...

In dynamic general-equilibrium economic models, equilibrium may be indeterminate, so a continuum of equilibrium trajectories may converge to the same steady state. Often, those mechanisms leading to indeterminacy, like increasing returns to scale, may also lead to multiple steady states and...