We analyze the efficient subsidy for durable good technologies. We theoretically demonstrate that a policymaker faces a tension between intertemporally price discriminating by designing a subsidy that increases over time and taking advantage of future technological progress by designing a...

Eric Barthalon applies the neglected theory of psychological time and memory decay of Nobel Prize-winning economist Maurice Allais (1911-2010) to model investors' psychology in the present context of recurrent financial crises. Shaped by the behavior of the demand for money during episodes of...

This collection of essays uses the lens of rational expectations theory to examine how governments anticipate and plan for inflation, and provides insight into the pioneering research for which Thomas Sargent was awarded the 2011 Nobel Prize in economics. Rational expectations theory is based on...

Biographical note: Roman Frydman is professor of economics at New York University and the coauthor (with Michael D. Goldberg) of "Beyond Mechanical Markets" and "Imperfect Knowledge Economics". Edmund S. Phelps, the winner of the 2006 Nobel Prize in Economics, is director of Columbia...