Historically-high levels of public debt have recently raised numerous concerns regarding fiscal policy. In particular, should governments tax more, spend less, or do both to manage high public debt? Also, given the uncertainty about the strength of the economic recovery, what is the suitable...

We study the implications of a particular form of irrationality on the pricing behavior of firms in a monopolistic-competitive market with incomplete information. We assume that firms are overconfident, meaning that they over-estimate their abilities to understand the correct model of the...

I study the implications of recursive utility for the design of optimal fiscal policy. I find that the standard policy prescriptions of the dynamic Ramsey literature are dramatically altered. Labor tax volatility is optimal and can be quantitatively substantial. Furthermore, labor taxes are...

We study the implications of a particular form of irrationality on the pricing behavior of firms in a monopolistic-competitive market with incomplete information. We assume that firms are overconfident, meaning that they over-estimate their abilities to understand the correct model of the...

This paper develops a theory of debt management in which government financing decisions have distributional consequences. We consider a constant aggregate endowment economy in which the government finances exogenous stochastic public spending needs with uniform lump sum taxes and...

This paper studies the role of education in women's changing role in the labor and marriage markets since the 1960's.

The global economic and financial instability context of the 1990s and 2000s also affected the Turkish economy. Actually, the 1980s in Turkey are characterized by a radical transformation of its economy through significant efforts of liberalization. With an out-looking economy and a liberalized...

The goal of this paper is to develop formal techniques for analyzing the relative in-sample performance of two competing, misspecified models in the presence of possible data instability. The central idea of our methodology is to propose a measure of the models' local relative performance: the...

quantifying gravity- and border-effects in price setting behavior.

In traditional auction theory, the auctioneer is usually treated as a non-entity or someone whose incentives are completely aligned with the seller's. In reality, quite frequently that is not the case. Many auctions are administered by third party auctioneers who do not own the product and get a...