Nominal output targeting is sometimes advocated as a guide for monetary policy on the grounds of simplicity and favorable macroeconomic performance. This study casts doubt on the second of these justification.

We develop the theoretical underpinnings of pairwise random matching mechanisms. We formalize the mechanics of matching, and study the links between properties of the different mechanisms and trade frictions. A particular emphasis is placed on providing exact mappings between matching...

In this paper we use an experimental approach to study the decisions of human subjects who are given cash incentives to solve a particular representative agent dynamic model widely studied in macroeconomics. In a representative agent dynamic model, an economy is modelled as a single decision...

While there can be no disputing Smith's clear intent to employ his labor-commanded unit as a medium of value measure, we are still left with the problem of reconciling the multiple forms and characteristics taken on by this measure and the various applications to which it is put.That is the task...

The paper examines possible consequences of subsidies to R&D and to volume production proposed under the Clinton administration's flat panel display initiative. We do this in the context of a model in which firms behave competitively in the short run, while realizing that their choices of...

In recent years, there has been a rise in the popularity of preferential trading arrangements (PTA), and an equally precipitous rise in the number of papers studying the effects of regionalism. In this paper we assess the effect of preferential trading arrangements on the aggregate and bilateral...