Tests of Competing Theories of Consumer Choice and the Representative Consumer Hypothesis In this paper, the authors estimate demand functions for individual agents. They test if commonly-used functions are consisten t with the data and if parameters are the same across subjects. The y examine...

Nonlinearities in economies, as elsewhere, can generate chaotic equilibria. The presence of Pareto-inferior chaotic equilibria might seem reason enough to use stabilization policy to select preferable equilibria. However, the author shows that a stabilization policy with feedback can itself lead...

We use a cost of carry model with nonzero transaction costs to motivate estimation of a nonlinear dynamic relationship between the S&P 500 futures and cash indexes. Discontinuous arbitrage suggests that a threshold error correction mechanism may characterize many aspects of the relationship...