This paper studies competition among multiple sellers in frictional markets. Ex-post equilibrium is tractable in terms of market information revelation. Applying the sufficient condition for equilibrium robustness (with respect to a seller's deviation to any arbitrary selling mechanism) to...

In this study, we measure the effects of debt dilution on sovereign default risk and consider debt covenants that could mitigate these effects. First, we calibrate a baseline model of defaultable debt (in which debt can be diluted) with endogenous debt duration, using data from Spain. Secondly,...

An investment game is used to generate indices of trust and reciprocity from 182 young adults. The raw data indicate that men are more trusting than women and responders return a larger share of their resources to more trusting senders than to less trusting senders. Sex differences do not...

Background: Surveys of chronic health conditions provide information about prevalence but not about the incidence and the process of change within the population. Objective: We show how the “age dynamics” of chronic conditions ‐‐ the probabilities of contracting the conditions at...

Can variations in the expected future return on a portfolio of sovereign bonds itself have real effects on a small open economy? We build a model where banks face a capital sufficiency requirement to demonstrate that news about a fall in the expected return on a portfolio of long bonds can lead...

OBJECTIVE: The paper explores the population effects of male preference stopping rules and of alternative combinations of fertility rates and male-biased birth sex ratios. METHODS: The “laboratory” is a closed, stable population with five age groups and a dynamic process represented by a...

Using data from a laboratory-controlled environment we analyze the decisions of principals to veto the allocations of grossed-up investments proposed by their agents in a modified trust game. We also analyze the changes in the surplus associated with the introduction of empowerment and the...

Episodes of sovereign default feature three key empirical regularities in connection with the banking systems of the countries where they occur: (i) sovereign defaults and banking crises tend to happen together, (ii) commercial banks have substantial holdings of government debt, and (iii)...

Population aging is a problem common to many countries: an increasing proportion of retired people, a decreasing proportion of working age, and resultant downward pressure on national product per capita. We explore longer-run aspects of immigration as a policy instrument in this context. We...