This paper examines the importance of establishment-level discrete and occasional capital adjustments for aggregate business cycle dynamics. Generalized (S,s) investment rules arise through nonconvex costs of capital adjustment within an otherwise standard equilibrium business cycle model, and...

We consider a rationing mechanism for selling a common-value object. Under certain conditions, the seller earns higher revenue from rationing the object, rather than holding a second-price auction. The mechanism is formally equivalent to dividing the object into k units, and allocating (1/k)...

Swedish lottery bonds offer a unique opportunity to study ex-day effects in an environment where cash distributions are tax advantaged relative to capital gains. Thus, in the lottery bond market, we observe a reversal of the preference for capital

We study competitive equilibria with moral hazard in economies with aggregate risk and where trading occurs with an incomplete set of financial assets (this version preliminarly analyzes economies with trading in only one asset). The main conclusion of the paper is that, contrary to the...

Research over the past several years has led to development of models characterizing equilibrium in a system of local jurisdictions. More recently, there have been a number of studies which have tried to estimate these models. The evidence suggests that simple parametric models can explain the...

This paper reports an experimental test of how, when observing others' actions, participants learn more than just information that the others have. We use a setting where all information is public and where subjects face two kinds of information sets: (1) the information that is necessary and...