When parents save money for their children's college education, a portion of their savings is later taken away in the form of reduced eligibility for college financial aid. We estimate the long-run impact of this implicit asset tax by estimating family preferences over life-cycle consumption,...

Abstract The bias of forward exchange rates as a predictor of future spot rates is typically explained or decomposed as (1) a risk premium and (2) a convexity term which accounts for the fact that, when there is stochastic inflation, nominal gains from forward currency speculation are higher...

Why don’t people give more to charity? One reason is that the problems will be there whether individuals give or not. Here is a policy--inspired by the matching grants that charities use so effectively--that could actually make a real difference.

The difference in unfunded obligations observed by Professor Chyla is explained by the difference between 75-year and infinite-horizon projections.

Proposition 87 reemphasized that Americans don't want the cost of driving to increase: Aaron Edlin suggests a way to reduce driving that may be more politically palatable.

We study the anticompetitive effects of predatory pricing and the efficacy of three policy responses. In a series of experiments where an incumbent and a potential entrant interact, we compare prices, market structures and welfare. Under a laissez-faire regime, the threat of post-entry price...