The authors introduce borrowing constraints into the life-cycle theory of labor supply and show that they account for observed profiles in consumption, earnings, and hours worked. They can also account for differences in occupational choice across individuals who differ in initial wealth,...

We examine a decentralized monetary economy in which households can use a means of exchange (barter or gold) other than fiat money. The alternative means of exchange may drive out money even if monetary exchange Pareto dominates. Legal restrictions prohibiting other means of exchange may...

The authors consider a monopolist who can commit to a price path when selling a good for which individual consumers demand at most one unit. Only if the monopolist can also commit to destroying unpurchased stock and the timing of stock release, can she earn more than a static monopolist. This...