Many economic decisions involve a binary choice - for example, when consumers decide to purchase a good or when firms decide to enter a new market. In such settings, agents' choices often depend on imperfect expectations of the future payoffs from their decision (expectational error) as well as...

This paper analyses the determinants of grades achieved in three core subjects by first-year Economics undergraduate students at Universidad Carlos III de Madrid, over the period 2001-2005. Gender, nationality, type of school, specialization track at high school and the grades at the university...

This paper analyses the determinants of academic performance of first-year undergraduate students in Economics at Universidad Carlos III de Madrid, over the period 2001-2005. We focus on a few core subjects which differ in their degree of mathematical complexity. Type of school, specialization...

Exporting firms continuously change export destinations. We present reduced-form evidence indicating firms are more likely to export to countries that are geographically close to their previous destinations. This evidence for path dependence in exports is robust to controlling for firm-country...

A dynamic linear rational equilibrium model in the tradition of Alonso, Rosen and Roback is consistent with many outstanding stylized facts of housing markets. These include: (a) that the markets are local in nature; (b) that construction persistence is fully compatible with mean reversion in...

Exporters continuously enter and exit individual foreign markets. Although a given firm's status as an exporter tends to be persistent, the set of destination countries that a firm serves changes frequently. In this paper we empirically examine the determinants of a firm's choice of destination...

We provide an assignment model to decompose changes in between-group wage inequality into changes in the composition of the workforce, the productivity/demand for tasks, computerization, and labor productivity. The model incorporates comparative advantage between many groups of workers, many...

The volatility of house prices and construction levels is high. Both exhibit strong positive serial correlations at 1-year frequencies, Prices show strong mean reversion over 5-year periods. This paper asks whether these facts can be reconciled in a dynamic housing model, where in the tradition...