We demonstrate that wage volatility, measured as the cross-sectional variance of wage changes in PSID data, is counter-cyclical. We quantify this relationship by estimating the re- gression coecient of wage volatility on the national unemployment rate in a multilevel Bayesian model, then...

A robust finding in experiments on time preference is the magnitude effect: subjects tend to be more patient towards larger rewards. Using a calibration theorem, we argue against standard curvature-based explanations for the finding. We axiomatize a model of preferences over dated rewards that...

We analyze a firm's job-assignment and worker-monitoring decisions when workers face occasional crises. Firms prefer to assign good workers to a difficult task and to not employ bad workers. Firms observe failures but only observe successfully resolved crises if they monitor the worker. If...

We study a market with rationally inattentive consumers who are unsure of the terms of the offers made by firms, but can acquire information about the terms at a cost. In a symmetric equilibrium, the price set by firms is continuously increasing in the cost of information for consumers and...

We present estimates of home ownership for African American and white households from 1870 to 2007. These estimates, which pertain to a core sample of households headed by adult men, update and extend an earlier paper’s analysis (William J. Collins and Robert A. Margo 2001) with figures for...

This paper provides evidence that market conditions matter for organization design by studying how trade policy affects vertical integration. We embed an incomplete-contract model of firm boundaries into an international trade framework. Integration decisions are driven by a tradeoff between...

In order to elicit discount functions, experiments commonly analyze how subjects trade-off money and time. However, discounting reveals itself most transparently in behavior obtained by fixing the money dimension and varying only the time dimension. This paper presents an experimental procedure...

This paper considers methods for estimating and testing multiple structural changes occuring at unknown dates in linear models using band spectral regressions. We con- sider changes over time within some frequency bands, permitting the coefficients to be di¤erent across frequency bands. Using...

This paper considers the estimation of multiple structural changes occurring at unknown dates in one or multiple conditional quantile functions. The analysis covers time series models as well as models with repeated cross-sections. We estimate the break dates and other parameters jointly by...

We consider the problem of estimating and testing for multiple breaks in a single equation framework with regressors that are endogenous, i.e., correlated with the errors. We show that even in the presence of endogenous regressors, it is still preferable to simply estimate the break dates and...