How will the distribution of welfare, consumption and leisure across households be affected by social security reform? This paper answers this question for a social security refom with a two-tier structure by comparing steady state under a realistic version of the current US system and under the...

This paper proposes and applies a method of moments to estimate dynamic decision models with corner solutions. The method is applied to estimate a model of price and inventory decisions using data of individual goods from a supermarket chain.

We explore the links between migration of labour and location specific (urban) pollution, suggesting a sense in which pollution can be welfare improving. In a conventional Harris-Todaro model of urban-rural migration, individuals migrate so as to equate the expected urban wage (given a downward...

Three monetary regimes - the gold standard, a regime of 'socialism in many countries' and the post-Bretton Woods regime - and difficult transitions between them have shaped the economic history of the twentieth century. The regimes consisted of coherent sets of government policies and equally...

Every country in the world must settle on an international trade policy. Does it engage in any international trade, and if so, to what extent does it pursue a set of policies which in some way restricts the free flow of international trade? Few countries, if any, choose either extreme -- no...

Neyman and Scott (1948) define the incidental parameter problem. In panel data with T observations per individual and unobservable individual-specific effects, the maximum likelihood estimator of the common parameters is in general inconsistent. This paper develops the integrated moment...

In this paper, I shall discuss in turn: the views of Hawtrey and Friedman on the powers of monetary and fiscal policy, and contrast them with those of Douglas and Director to which Tavlas draws attention; the role of monetary factors in causing and exacerbating the Great Contraction of...

Evidence on the portfolio holdings and transaction patterns of households suggests that the burden of inflation is not evenly distributed. We build a monetary growth model consistent with key features of cross- sectional household data and use this framework to study the distributional impact of...