At each point in time, price dynamics in a market are determined by a market for access to trading partners, implemented by competitive profit-maximizing brokers. This mechanism is applied to a market in which the value of a good declines over time and buyers decide optimally when to reenter the...

Whenever unsustainable current government budget deficits predict future changes in monetary growth through the government's intertemporal budget constraint, fiscal variables become important exchange rate determinants. Failure to understand sustained rates of depreciation, seemingly unjustified...

Representative consumers can be very Pareto inconsistent. We describe a community, with equal income distribution, where all consumers require 50% higher aggregate income than the representative consumer requires in order to be compensated for the doubling of a price. Such large inconsistencies...

This paper describes the equilibrium price function generated by brokers in a market in which heterogeneous buyers meet heterogeneous sellers through a matching process with frictions. The equilibrium price function relates the price to alternative ratios of buyers and sellers offered by...

Since 1992, twenty-two states have enacted family cap provisions into their welfare policies in an attempt to decrease out-of-wedlock childbearing. Using matched data from the March CPS between 1989 and 1998, I construct measures of whether or not a woman is affected and the size of effective...

The 1999 State of the Union Address included a "call to action" to improve school quality and provide citizens with safe streets, schools and neighborhoods through initiatives such as decreasing student-teacher ratios, enhancing teacher quality and offering innovative and after-school programs....

This paper analyzes labor market responses to productivity shocks when firms set employment criteria on the basis of the likelihood of hiring high productivity or low productivity workers. In response to a positive productivity shock, firms do not raise the criterion as much as the shock,...