Woodford (1999 and 2003) has raised the theoretical possibility that in a standard, forward looking sticky price model, an independent channel of inertia might arise as a result of policy behavior. We analyze this assertion empirically, and estimate a standard model, in which the monetary...

We propose a new test of the forward-looking Phillips curve for a panel of 10 OECD countries. Structural parameter estimates are obtained using an extremum estimation method which is applied in the frequency domain. Such an estimator has the advantage of enabling the econometrician to focus on...

In this paper, we test the present value relation implied by the forward-looking Phillips curve using data on 10 OECD countries. In an influential contribution, Galí and Gertler (1999) have suggested building theoretical inflation series conditional on a reduced-form VAR forecasting process for...

In a dynamic model of assignment problems, small deviations suffice to move between stable outcomes. This result is used to obtain no-selection and almost-no-selection results under the stochastic stability concept for uniform and payoff-dependent errors. There is no-selection of partner or...

This paper documents a positive relationship between mineral resources abundance and individualistic values in the United States. We refer to "individualism" as the set of values opposed to public intervention in income allocation and favorable to individual selfresponsibility. We show that...

It is shown that a matching market with contracts may be embedded into a matching market with salaries under weaker assumptions on preferences than substitutability. In particular, the result applies to the recently studied problem of cadet-to-branch matching. As an application of the embedding...

We study the effectiveness of public investment in stimulating an economy stuck in a liquidity trap. We do so in the context of a tractable new-Keynesian economy in which a fraction of government spending increases the stock of public capital subject to a time-to-build constraint. Public...

During the European sovereign debt crisis, most countries that ran into fiscal trouble had Catholic majorities, whereas countries with Protestant majorities were able to avoid fiscal problems. Survey data show that, within Germany, views on the euro differ between Protestants and...