In a broad class of non-linear representative agent models, represented by a system of difference equations, we replace rational expectations with linear forecast models conditioning on a predetermined set of regressors. Within this framework, a {\em restricted perceptions equilibrium} (RPE)...

The authors evaluate the impact of an educational intervention, in which a Kenyan non-governmental organization distributes school uniforms to children in poor communities. The Nongovernmental organization (NGO) used a lottery to determine who would receive uniforms. Although compliance with the...

A planner sets a lump sum transfer and a linear tax on labor income in an economy with incomplete markets, heterogeneous agents, and aggregate shocks. The planner's concerns about redistribution impart a welfare cost to fluctuating transfers. The distribution of net asset holdings across agents...