Unemployment rates are significantly lower for married workers in the U.S. Motivated by this and labor market flow differences across individuals of different marital states, we develop an incomplete markets model to account for the facts. Using the model, we attempt to answer two questions....

We provide evidence that economic circumstances are a key intermediating variable for understanding the relationship between schooling and political protest. Using the World Values Survey data, we find that individuals with higher levels of schooling, but whose income outcomes fall short of that...

higher than in a representative agent model, or even smaller.

We propose a Ricardian trade model with horizontal and vertical differentiation, where individuals' willingness to pay for quality rises with their income, and productivity differentials across countries are stronger for high-quality goods. Our theory predicts that the scope for trade widens and...

We model trading and information diffusion in OTC markets, when dealers can engage in many bilateral transactions at the same time. We show that information diffusion is effective, but not efficient. While each bilateral price partially reveals all dealers' private information after a single...

We develop a tractable unified framework for solving optimal time- and state-dependent price-setting problems. We illustrate our approach by solving a price-setting problem where adjustments are costly, and there are two types of information. One type is freely and continuously available while...

This paper develops an econometric model of firm entry, competition, and exit in dynamic oligopolistic markets. The model entertains market-level demand and cost shocks, sunk entry costs, and parameters that capture economic barriers to entry and the toughness of price competition. Nevertheless...

We study a heterogeneous agents model which combines matching frictions in the labor market with incomplete asset markets and nominal rigidities. Workers can experience job terminations that send them into short term unemployment or more serious job terminations that require a more difficult...

In this paper, we investigate the effect of financial conditions on price-setting behavior during the 2008-2009 financial crisis. Using confidential, individual producer prices from the Bureau of Labor Statistics, we match these prices to Compustat firm-level data and compare pricing behavior...

This paper takes a new approach to testing whether employer learning is public or private. We show that public and private learning schemes make two distinct predictions about the curvature of wage growth paths when there is a job change, because the amount of information transferred to a new...