We study the optimal portfolio choice of hedge fund managers who are compensated by high-water mark contracts. Surprisingly, we find that even risk-neutral managers will not place unboundedly large weights on the risky assets, despite the option-type features of the contract. Instead they will...

We study the optimal portfolio choice of hedge fund managers who are compensated by high-water mark contracts. Surprisingly, we find that even risk-neutral managers will not place unboundedly large weights on the risky assets, despite the option-type features of the contract. Instead they will...

We develop a tractable asset-pricing framework characterized by imperfect risk sharing among cohorts, who experience different levels of integrated life-time endowments. While all asset-pricing implications stem from the heterogeneity of consumption among investors, cross-sectional measures of...

In this paper we study the implications of general-purpose technological growth for asset prices. The model features two types of shocks: "small", frequent, and disembodied shocks to productivity and "large" technological innovations, which are embodied into new vintages of the capital stock....

In this paper we study the implications of general-purpose technological growth for asset prices. The model features two types of shocks: "small", frequent, and disembodied shocks to productivity and "large" technological innovations, which are embodied into new vintages of the capital stock....

This dissertation consists of three essays in empirical labor and health economics. The first chapter examines how the amount of time devoted to a leisure activity varies in response to temporary changes in the price of that activity. Specifically, I estimate the effect of changes in expected...

This thesis is a collection of two essays on open economy macroeconomics. The first essay is on imperfect asset substitutability and current account dynamics. It is divided into four chapters. The first chapter in this essay is a preface for the chapters to follow. The second chapter lays out a...

The first essay explores the relationship between openness and growth. As, Rodriguez and Rodrik (2000) argue, the relation between openness and growth is still an open question. One of the main problems in the assessment of the effect is the endogeneity of the relation. In order to address this...