Several models of economic behavior currently compete for an explanation of individual wealth accumulation. However, most focus upon a very limited set of saving motives. In this paper we build a general model of economic behavior, set in a stochastic environment, which incorporates multiple...

David Ricardo (1772-1823) and Thomas Tooke (1774-1858) were contemporaries in the ‘golden era’ of English classical economics, along with Malthus, Torrens and McCulloch. The central figure in that era was undoubtedly Ricardo with his vital contributions to the ‘core’ analysis of value...

We use longitudinal data on stock prices of cross-listed firms to investigate abnormal systematic changes in the price disparity of cross-listed stocks between the Hong Kong and Shanghai exchanges from 2002 to 2014. We identify a liberalization policy that generated an unprecedented abrupt...

The ability to share intentions and adjust one's choices in collaboration with others is a fundamental aspect of human nature. We discuss the forces that would have acted for and against the evolution of this ability for a large class of dilemmas and coordination problems that would have been...

In this paper we document rise in wage inequality in Australia over the last decade. A key driver of this inequality is unobservable or residual inequality. We decompose residual wage inequality into permanent and transitory components. The estimates of the permanent shock from the first...

This paper considers marriage problems, roommate problems with nonempty core, and college admissions problems with responsive preferences. All stochastically stable matchings are shown to be contained in the set of matchings which are most robust to one-shot deviation.

In spite of the popularity of model calibration in finance, empirical researchers have put more emphasis on model estimation than on the equally important goodness-of-fit problem.This is due partly to the ignorance of modelers, and more to the ability of existing statistical tests to detect...