This paper describes a production-based asset pricing model. It is analogous to the standard consumption-based model, but it uses producers and production functions in the place of consumers and utility functions. The model ties stock returns to investment returns (marginal rates of...

The fiscal theory says that the price level is determined by the ratio of nominal debt to the present value of real primary surpluses. The maturity structure of the debt matters in this theory. For example, it determines whether news of future deficits implies current inflation or future...

Currently available health insurance contracts often fail to insure long-term illnesses: sick people can suffer large increases in premiums or denial of coverage. The author describes insurance contracts that solve this problem. Their key feature is a severance payment. A person who is diagnosed...