We empirically investigate whether the relationship between interest rates and public deficits/debt may be nonlinear for the U.S. Using threshold estimation, we find evidence of level-dependent effects on interest rates, implying a significant effect of projected deficits and debt in the U.S....

Threshold models have been widely used to analyze interdependent behavior, yet empirical research identifying people's thresholds is nonexistent. We introduce an incentivized method for eliciting thresholds and use it to study support for affirmative action in a large, stratified sample of the...