This paper studies markets for heterogeneous goods using mechanism-design theory. For each combination of desirable properties, we derive an assignment process with these properties in the form of a corresponding direct-revelation game, or we show that it does not exist. Each participant's...

We study a stochastic overlapping generations model with production and three- period-lived agents. Agents trade bonds and risky capital. Unlike the two-period model, we show that a stationary equilibrium in which prices and allocations depend solely on the aggregate capital stock and the...

Abstract: While many parts of the developing world have experienced “green revolutions”, agricultural productivity growth in sub-Saharan Africa has stagnated for decades. In this paper, I argue that production uncertainty is a major factor inhibiting agricultural investment in the region,...

We extend the Laplace estimators approach proposed by Chernozhukov and Hong (2003) by incorporating information in the space of overidentifying re- strictions (OR) in GMM, information previously ignored during parameter es- timation in Bayesian methods. Parameters and test statistics are...

The switch from equity to debt in venture capital-backed entrepreneurial firms is rare, but uniquely informative. Using a novel dataset of financing decisions, we find that entrepreneurial firms that raise debt financing suffer from an average 40% post-debt valuation drop and a 26% lower...

Building on Goodfriend and McCallum (2007), the paper presents a theory of money and banking in which the interbank Treasury-Bill (TED) spread (and other spreads) reflect the valuation of government bond collateral services in banking. Government debt held by households defrays the cost of...