A large positive literature emphasizes the role of technological change in driving the demand for skill and talent. We consider the normative implications of such technical change for policy design.

In this paper we study the efficient allocation of health resources across individuals. We focus on the relation between health resources and income (taken as a proxy for productivity). In particular we determine the efficient level of the health care social safety net for the indigent. We...

Business Cycle Accounting (BCA) is a helpful litmus test for quantitive macroeconomic models. Indeed, deviations from the data and a neo-classical growth model can be summarized as distortion of the efficiency of production or to optimality conditions such as leisure-consumption choices and...

This paper studies the optimal lending contract between an international lender and a sovereign country. A benevolent government finances uncertain expenditures - which are privately observed by the country - using external debt and optimally choosing domestic debt and taxes as in a standard...

How should society allocate health-care resources across individuals? In what ways is the current allocation of health-care inefficient? In this paper we study a model in which health status affects probability of survival and individuals are heterogeneous with respect to their labor...

We analyze an equilibrium concept called revision-proofness for infinite-horizon games played by a dynasty of players. Revision-proofness requires strategies to be robust to joint deviations by multiple players and is a refinement of sub-game perfection. Sub-game perfect paths that can only be...

A model of racial discrimination provides testable implications for two features of statistical discriminators: differential treatment of signals by race and heterogeneous experience that shapes perception. We construct an experiment in the U.S. rental apartment market that distinguishes...

This paper provides a new estimation and solution method for a generalized class of sorting hedonic models based on discrete approximations of the distribution of housing quality. Our approach incorporates heterogeneity in preferences and treats quality as latent. Additionally, a housing market...

To detect the presence of predatory pricing, antitrust authorities routinely ask whether a firm sacrifices current profit in exchange for the expectation of higher future profit following the exit of its rival. Because predatory pricing is an inherently dynamic phenomenon, we show in this paper...