We examine whether the Coase conjecture (Coase [1972], Stokey [1981], Bulow [1982], Gul, Sonnenschein and Wilson [1986]) is robust against slight ability of commitment of the monopolist not to sell the durable goods to consumers with a reservation value higher than the marginal production cost....

We examine the stability of rational expectations equilibria in the class of models in which the decision of the individual agent is discontinuous with respect to the state variables. Instead of rational expectations, each agent learns the unknown parameters through a recursive stochastic...

The result of Benhabib, Schmitt-Grohé, and Uribe (2001) is powerful because it relies only on three rather natural conditions: the Fisher equation, the convex Taylor rule, and the lower bound of the nominal interest rate. Their result is striking because the paper reveals the peril of the...