Public policies often involve choices of alternatives in which the size and the composition of the population may vary. Examples are the allocation of resources to prenatal care and the design of aid packages to developing countries. In order to assess the corresponding feasible choices on...

This paper examines the implications of intergenerational transfers of time and money for labor supply and capital accumulation.

In this paper, we characterize the asymmetric of the smile through multiple leverage effects in a stochastic dynamic asset pricing framework.

This assesses the empirical performance of an intertemporal option pricing model with latent variables with generalized the Hull-White stochastic volatility formula.

Static oligopoly analysis predicts that if a single firm in Cournot equilibrium were to be constrained to contract its production marginally, its profits would fall. On the other hand, if all the firms were simultaneously constrained to reduce their productino, thus moving the industry towards...

This paper considers the optimal contract when the current (hidden) action of an agent has a persistent effect on the future outcome. In this setting, the current outcome is not only a signal of the current action taken by the agent, but also conveys information about his past actions. The...