The analysis of climate change mitigation policies at the global or the national level ultimately depends on the assumed energy mix. This paper provides an overview of a framework that endogenizes resource use over time in a Hotelling-type exhaustible resource model.

This study reviews Tag el-Dini's (1996) paper and raises the possibilities that his organizational models may create other kinds of inefficiency. Furthermore, using Canadian stock data I extended his study and found that excess speculative activities (bubbles) do not add any information to the...

A macro-determinant model of stock return volatility using monthly data on Canadian and U.S. markets is estimated. If volatility is a measure of risk, one should verify whether the estimated volatility is a measure of future (ex ante) risk or realized (ex post) risk. When speculators are...

The increasing rate of obesity in the U.S., particularly among low-income households, necessitates a thorough understanding of the relationship between obesity and in-kind federal benefits such as the Supplemental Nutrition Assistance Program (SNAP), formerly the Food Stamp Program. However,...

Using a new daily dataset for all stocks traded on the New York Stock Exchange from 1905 to 1910, we provide the first in-depth, microstructure analysis of the Panic of 1907 - one of the most severe financial crises of the 20th century - and quantify the critical role of asymmetric information...

This paper develops a general equilibrium model to study the impact of aggregate fluctuations in idiosyncratic volatility that incorporates the endogenous determination of investment opportunities. By making investment options more valuable, an increase in volatility encourages the creation of...

This paper characterizes jointly optimal default and exchange-rate policy. The theoretical environment is a small open economy with downward nominal wage rigidity as in Schmitt-Grohe and Uribe (2013) and limited enforcement of international debt contracts as in Eaton and Gersovitz (1981). It is...

This paper models employers' preference for discrimination toward ex ante identical groups of workers when the workers must compete for limited positions. Employers benefit from discrimination against minority workers because it can reduce the overall risk from workers' noisy signals as it...

This paper examines how moral rules form in the process of social learning in order to analyze the relationship between legal rules and moral rules. Members of society learn morality from the observed behavior of other members. Their incentive to act morally is influenced by their expectation of...

This paper studies firms' usage of interest rate swaps to manage risk in a model economy driven by aggregate productivity shocks, inflation shocks, and counter-cyclical idiosyncratic productivity risk. Consistent with empirical evidence, firms in the model are fixed-rate payers, and swap...