This paper examines the quantitative interrelations between sectoral composition of public spending and equilibrium (in)determinacy in a two-sector real business cycle model with positive productive externalities in investment. When government purchases of con- sumption and investment goods are...

This paper studies the cyclical fluctuations in unemployment and vacancies in a search and matching model in which workers lose skills during periods of unemployment. Firms' profits fluctuate more because aggregate productivity affects the economy's human capital level. Moreover, wages for...

Econometricians have recently been interested in estimating and testing the mean reversion parameter (κ) in linear diffusion models. It has been documented that the maximum likelihood estimator (MLE) of κ tends to over estimate the true value. Its asymptotic distribution, on the other...

World lenders have dismissed warnings from credit rating firms and kept buying and holding U.S. Treasuries for security. The likely reason is that our tax system is stronger than Europe's. The major difference is that Europe has come to rely heavily on VATs, while the U.S. stands alone in not...

In downtown areas, what proportion of curbside should be allocated to parking? In contrast to most previous work on the economics of parking, this paper focuses on optimal curbside parking capacity in both first-best (where pricing is efficient) and second-best (where pricing is inefficient)...

In recent years, the suggestion of combining models as an alternative to selecting a single model from a frequentist prospective has been advanced in a number of studies. In this paper, we propose a new semi-parametric estimator of regression coe¢ cients, which is in the form of a feasible...

This paper presents a dynamic competitive equilibrium model with heterogeneous time pref- erences that can account for the observed patterns of wealth and income inequality in the United States. This model generalizes the standard neoclassical growth model by including (i) a demand for status by...