This paper studies the effect of instrumental and institutional stabilization of exchange rate volatility on the integration of goods markets. Rather than using data on volume of trade, this paper employs a 3-dimensional panel of prices of 95 very disaggregated goods (e.g., light bulbs) in 83...

We build a model in which financial intermediaries provide insurance to households against a liquidity shock. Households can also invest directly on a financial market if they pay a cost. In equilibrium, the ability of intermediaries to share risk is constrained by the market. This can be...

Temporary price reductions or sales account for a small fraction of price quotes and a large fraction of items sold. Nevertheless, several recent macroeconomic studies have concluded that sales are not an important source of price flexibility. Using a large set of scanner data covering 31...

The dissertation studies the effect of trade liberalization in one sector on factor prices, employment, and average productivity of firms in the other sector (spillover effect) in a two-country, specific-factors model of international trade where the industry structure of the sector affected by...