We investigate how owners of durable goods respond to a once-for-all unanticipated shock in a housing market that was in a stationary state prior to, and after the shock. We determine the circumstances under which the landlord will: 1) abandon his building immediately; 2) run down his building...

The authors show that space matters in designing the optimal provision of local public goods. Geography imposes a particular institutional structure of local governments due to the overlapping of market areas associated with different local public goods. The optimum can be decentralized through...

We describe work in progress on computer simulations of adaptive predictive agents responding to an evolving chaotic environment and to one another. Our simulations are designed to quantify adaptation and to expore co-adaptation for a simple calculable model of a complex adaptive system. We...