AbstractReplicating the degree of cross-country comovements of macroeconomic aggregates, dynamics of prices and quantities of international trade, and the behavior of consumption and labor remains an important challenge in international business cycle literature. This paper incorporates...

Although social scientists devote considerable effort to mitigating measurement error during data collection, they often ignore the issue during data analysis. And although many statistical methods have been proposed for reducing measurement error-induced biases, few have been widely used...

We propose a new model of exchange rates, which yields a theory of the forward premium puzzle. Our model is frictionless, has complete markets, and works for an arbitrary number of countries. Each country's exposure to disaster risk varies over time according to a mean-reverting process. Risky...

In variants of the Electronic Mail Game (Rubinstein, 1989) where two or more players communicate via multiple channels, the multiple channels can facilitate collective action via redundancy, the sending of the same message along multiple paths or else repeatedly along the same path (Chwe, 1995...

This paper discusses nonparametric identification in a model of sorting in which location choices depend on the location choices of other agents as well as prices and exogenous location characteristics. In this model, demand slopes and hence preferences are not identifiable without further...