Cooperation in repeated games relies on the possibility that equilibrium play following some t-period history depends on more than simply the structure of the game remaining after the first t periods, that structure being always the same. In a nondegenerate theory of renegotiation, what a player...

One of the main findings of the principal-agent literature has been that incentive schemes should be sensitive to all information that bears on the agent's actions. As a manifestation of this principle, incentive schemes tend to take quite complex (non-linear) forms. In contrast, real world...

This paper estimates the amount by which the effectiveness of monetary policy in changing real output has declined due to the increased size of the federal government debt.

This paper analyzes the consistency properties of classical estimators for limited dependent variables models, under conditions of serial correlation in the unobservables. A unified method of proof is used to show that for certain cases (e.g., Probit, Tobit and Normal Switching Regimes models,...