This note explains the process of public opinion formation via a locally interactive, space-time analysis. The model we use is a special case of the general framework for modelling social interaction proposed in Blume and Durlauf (2001). In the reduced form of the model we study how each...

This paper investigates the effects of unobservable factors that, as is well-known, contaminate two of the variables most used in labour market research, namely the stock of unemployment and the stock of vacancies. Using a matching function framework, we compare different panel data estimators...

The aim of this paper is to show that both location and stereotype racial beliefs matter for explaining the high criminality rate among blacks in cities. In our model, blacks and whites are identical in all respects. However, if, for no economic but for extrinsic reasons, every-body (including...