This paper develops a simple two-country, two-good model of international trade and borrowing that suppresses all previous sources of current account dynamics. Under rational expectations, international debt follows a random walk. Under adaptive learning however, international debt behaves like...

This paper develops a simple two-country, two-good model of international trade and borrowing that suppresses all previous sources of current account dynamics. Under rational expectations, international debt follows a random walk. Under adaptive learning, however, the model's unit root is...

This paper uses the technique of Lubik and Schorfheide [Lubik, T., Schorfheide, F., 2004. Testing for indeterminacy: an application to U.S. monetary policy. The American Economic Review 94 (1), 190-217] to test for indeterminacy in a New Keynesian Model. Using real-time, instead of revised data...

I use a structural matching model, North Carolina public school data, and a survey of teachers’ career plans to analyze schools’ and teachers’ behaviors in the teacher transfer market. Results show that mid-career teachers with better pre-service qualifications are the most eager to...

We develop and estimate a one-shot search model with endogenous firm entry, and therefore zero expected profits, and endogenous labor supply. Positive employment effects from a minimum wage increase can result as the employment level depends upon both the numbers of searching firms and workers....

Teacher effort, a critical component of education production, has been understudied in the literature because of measurement difficulties. I use a principal-agent model, North Carolina data, and the state’s accountability system that awards cash for school-level academic growth to distill...