Public services provision depends on tax proceeds. The tax rate to finance public school is chosen through majority voting. Under the monotonicity condition implying that the preferred tax rate is decreasing in income, the literature predicts that the median voter is decisive and poor agents...

We introduce an algorithm for solving dynamic economic models that merges stochastic simulation and projection approaches: we use simulation to approximate the ergodic measure of the solution, we construct a fixed grid covering the support of the constructed ergodic measure, and we use...

Agents involved in the formation of a social or economic network typically face uncertainty about the benefits of creating a link. However, the interplay of such uncertainty and risk attitudes has been neglected in the network formation literature. We propose a dynamic network formation model...

We analyze empirically the marriage-market aspects of body size, weight, and height in the United States using data from the Panel Study of Income Dynamics on anthropometric characteristics of both spouses. We find evidence of positive sorting in spouses’ BMI, in their weight, and in their...

I show how differences in the schooling achievement of white and nonwhite teenagers across US cities can be explained in a context where teenagers have different values of their interactions with individuals belonging to their same racial group versus individuals belonging to other racial...

We consider the role of a publicly-owned platform and program quality in the free to air broadcasting industry. We compare the equilibrium levels of advertising under private and mixed duopoly competition, and show that the connection between program quality and advertising incentives are...

This paper shows that historical variables can explain a significant part of discretionary government spending across countries. We argue that these results provide evidence in favor of Besley and Persson’s (2009) hypothesis that institutional quality or state capacity is historically...

We study the Diamond-Dybvig model of financial intermediation (JPE, 1983) under theassumption that depositors have information about previous decisions. Depositors decidesequentially whether to withdraw their funds or continue holding them in the bank. If depositorsobserve the history of all...

This paper provides a criterion to evaluate the overall performance of a given number of groups whose members can be of different types, out of the analysis of their relative frequencies. Assuming that types can be ordered from best to worse, the starting point is that of dominance relations in...

Recent empirical evidence provided by Bernard et al. (2010) and Broda and Weinstein (2010) shows that a significant share of product creation and destruction in U.S. industries occurs within existing firms and accounts for a relevant share of aggregate output. In the present paper, and...