This paper describes a mechanism designed to induce commercial banks to increase their willingness to extend loans in an economic environment characterized by increased uncertainty and diminished expectations. This mechanism is a new tool for the conduct of monetary policy to combat recessions.

We propose a novel methodology for nonparametric identification of first-price auction models with independent private values, which accommodates auction-specific unobserved heterogeneity and bidder asymmetries, based on recent results from the econometric literature on nonclassical measurement...

This paper presents a complete, choice-based, axiomatic Bayesian decision theory. It introduces a new choice set consisting of information-contingent plans for choosing actions and bets and subjective expected utility model with effect-dependent utility functions and action-dependent subjective...

By 1989 the Michigan Panel Study on Income Dynamics (PSID) had experimented approximately 50 percent sample loss from cumulative attrition from its initial 1968 membership We study the effect of this attrition on the unconditional distributions of several socioeconomic variables and on the...

In this paper we consider the nonparametric identification of Markov dynamic games models in which each firm has its own unobserved state variable, which is persistent over time. This class of models includes most models in the Ericson and Pakes (1995) and Pakes and McGuire (1994) framework. We...

We present a unified mathematical framework within which among others pure exchange economies with a finite set of agents as well as those with a continuum of traders may be studied simultaneously We prove that the reasoning presented by Balasko (1975) on the equilibrium set for finite economies...

Welfare benefits in the US have experiences a much-studies secular decline since the mid-1970s We explore a new hypothesis for this decline related to the increase in wage inequality in the labor market and the decline of real wages at the bottom of the market and the decline of real wages at...

This paper studies interplant sex segregation in the US manufacturing industry The study differs from previous work in that we have detailed information on the characteristics of both workers and firms and because we measure segregation in a new and better way We report three main findings First...

We analyze a legislative bargaining game over an ideological and a distributive issue. Legislators are privately informed about their ideological positions. Communication takes place before a proposal is offered and majority rule voting determines the outcome. We compare the outcome of the...

We argue that the U.S. personal saving rate’s long stability (1960s–1980s), subsequent steady decline (1980s–2007), and recent substantial rise (2008–2011) can be interpreted using a parsimonious 'buffer stock' model of consumption in the presence of labor income uncertainty and credit...