The concept of a strict extended partial order (SEPO) has turned out to be very useful in explaining (resp. rationalizing) non-binary choice functions. The present paper provides a general account of the concept of extended binary relations, i.e., relations between subsets and elements of a...

In this paper we estimate the dynamic relationship between resources used in R&D by some OECD countries and their innovation output as measured by patent applications. We first estimate a long-run cointegration relation using recently developed tests and panel estimation techniques. We find that...

This paper provides an answer to an important empirical puzzle in the retirement literature: while most people know little about their own pension plans, retirement behavior is strongly affected by pension incentives. We combine administrative and self-reported pension data to measure the...

Foreign currency debt is widely believed to increase risks of financial crisis, especially after being implicated as a cause of the East Asian crisis in the late 1990s. In this paper, we study the effects of foreign currency debt on currency and debt crises and its indirect effects on short-term...

A covariance-stationary vector of variables has a Wold representation whose coefficients can be semiparametrically estimated by local projections (Jordà, 2005). Substituting the Wold representations for variables in model expressions generates restrictions that can be used by the method of...

This paper surveys the evidence, theoretical and empirical, relating to the possibility of achieving more egalitarian distributions of income than are typical in modern societies. The first four parts of the paper (Introduction, Improving efficiency an equality, The ownership of firms, and...

The "Harsanyi Doctrine" asserts that differences in individuals'' beliefs are to be attributed entirely to differences in information. In its embodiment as a Common Prior assumption it is central to the economics of information and the foundations of game theory. This paper attempts to provide a...

In 1980, government transfers as a fraction of GNP in OECD countries varied from 30.4% in Belgium to 11.1% in Greece. In this paper, we seek a political-economic explanation of this variation. In particular, we shall attempt to explain the variation as due to a variation in preferences of the...

Poor identification of individual impulse response coefficients does not necessarily mean that an impulse response is imprecisely estimated. This paper introduces a three-pronged approach on how to communicate uncertainty of impulse response estimates: (1) withWald tests of joint significance; (2)...

This paper introduces methods for computing impulse response functions that do not require specification and estimation of the unknown dynamic multivariate system itself. The central idea behind these methods is to estimate flexible local projections at each period of interest rather than...