Does monetizing a deficit result in a higher or a lower rate of inflation than does bond financing the same deficit? Sargent and Wallace (1981) produced conditions under which bond finance leads to a higher rate of inflation than deficit monetization ("unpleasant monetarist arithmetic'')....

The “End Racial Profiling Act of 2001” (ERPA) states that “nolaw enforcement agent or law enforcement agency shall engage in racial profiling” andmandates states to “collect detailed data on stops, searches, seizures, and arrests.” Wedevelop a stylized dynamic model of highway...

Chakraborty [Journal of Economic Theory, 2004] introduces endogenousmortality in a two period overlapping generations model by postulating thatthe probability of surviving from the first period to the second depends on taxfundedpublic health. His central result on the existence of multiple...

This paper provides a new approach to testing cointegration parameters in a singleequationcointegration environment. The novelty is in improving over the well-knownheteroscedasticity and autocorrelation consistent (HAC) robust standard errors usingfixed bandwidth (fixed-b) asymptotic theory and...

In this paper we propose tests for hypotheses regarding the parameters of the deterministictrend function of a univariate time series. The tests do not require knowledge of the form ofserial correlation in the data and they are robust to strong serial correlation. The data cancontain a unit root...

We develop a stylized dynamic model of highway policing in which a non-racist police officer exhibits a cognitive bias: relative overconfidence. The officer is given incentives to arrest criminals but faces a per stop cost which increases when the racial mix of her stops differs from that of the...