"This paper provides a simple dynamic optimization model of durable goods inventories. Closed-form solutions are derived in a general equilibrium environment with imperfect information and serially correlated shocks. The model is then applied to scrutinize some popular conjectures regarding the...

Child care and housing programs in the United States are marked by quality homogeneity, restricted eligibility, rationing, and copayments that increase as recipients' income rises. Why? I show that these programs can best be explained as attempts to reduce the child care or housing 'poverty...