This paper analyzes the effects of personal tax rates on macroeconomic variables at regional and national levels through a general equilibrium trade model with private and public sectors, migrating individuals, intermediate inputs and ?nal goods trade, and an analytical solution. The regional...

Why do we observe proliferation of bilateral free trade agreements (FTAs) between certain types of countries instead of having progress in attaining global free trade through a multilateral FTA? We answer this question by exploring the enforceability of di¡èerent types of FTAs through...

This paper investigates the price dispersion of U.S. imports at the good-category level across U.S. districts of entry. Although there is a large heterogeneity across goods, on average, the implied markups of a simple model explain about 31% of the price dispersion, while the implied marginal...

In a team production problem with unverifiable effort, budget breaking is essential to implementing efficient levels of effort. This short paper considers the use of a third party, who does not exert effort, in a setting with general contracts that can include message games, as a way to remove...

I explore the rather common legally permissible practice of police lying to suspects and/or fabricating evidence by analyzing a simple model in which police can fabricate/lie and then the accused chooses whether to confess. When police are not permitted to fabricate/lie, the police presenting...

The paper develops a two-country dynamic general-equilibrium model of growth without scale effects to explore the effects of globalization on long-run growth and wages. Higher quality products are endogenously discovered through stochastic and sequential global innovation contests in which...

We introduce two new variations on the Nash demand game. One, like all known Nash-like demand games so far, has the Nash solution outcome as its equilibrium outcome. In the other, the range of solutions depends on an exogenous breakdown probability; surprisingly, the Kalai-Smorodinsky outcome...

Open source (OS) licenses differ in the conditions under which licensors and OS contributors are allowed to modify and redistribute the source code. While recent research has explored the determinants of license choice, we know little about the impact of license choice on project success. In...

We study a consumption based asset pricing model with incomplete information and alpha-stable shocks. Incomplete information leads to a non-Gaussian filtering problem. Bayesian updating generates fluctuating confidence in the agents' estimate of the persistent component of the dividends’...

We study the constant discount rate present value model for stock pricing in a stochastic setting where the exogenous dividend stream is modeled as a random walk with innovations drawn from the family of stable distributions. We derive an exact analytical solution for the fundamental stock...