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Now showing items 311-320 of 328
Rationalizing Seven Consumption-Saving Puzzles in a Unified Framework'
(Vanderbilt University, 2007)
Empirical evidence suggests that it may cost time, effort, and resources to properly implement a saving plan, though such cost may differ across individual consumers. We document seven facts on macroeconomic consumption ...
Overconfidence and Consumption over the Life Cycle'
(Vanderbilt University, 2007)
Overconfidence is a widely documented phenomenon. In this paper, we study the implications of consumer overconfidence in a life-cycle consumption/saving model. Our main analytical result is a necessary and sufficient ...
Communicating Quality: A Unified Model of Disclosure and Signaling
(Vanderbilt University, 2007)
Firms communicate product quality attributes to consumers through a variety of channels, such as pricing, advertising, releases of research reports and test results, or warranties and returns policies. The conceptualization ...
Financial Intermediaries, Markets, and Growth'
(Vanderbilt University, 2007)
We build a model in which financial intermediaries provide insurance to households against idiosyncratic liquidity shocks. Households can invest in financial markets directly if they pay a cost. In equilibrium, the ability ...
Trade Skirmishes and Safeguards: A Theory of the WTO Dispute Settlement Process
(Vanderbilt University, 2007)
I model the World Trade Organization as an impartial arbitrator with no enforcement power which issues public signals correlated with the state of the world in the disputing countries. Such public signals, by mitigating ...
Liquidity, Equity Premium and Participation'
(Vanderbilt University, 2007)
I use price dispersion to model liquidity. Buyers may be rationed at the low price. An asset is more liquid if it is used relatively more in low price transactions and the probability that it will buy at the low price is ...
Efficient Barriers to Trade: A Sequential Trade Model with Heterogeneous Agents
(Vanderbilt University, 2007)
This paper studies a flexible price version of the Prescott (1975) hotels model. Unlike rigid price versions of the model, here the equilibrium outcome is efficient if potential buyers have the same downward sloping demand ...
Products Liability, Signaling and Disclosure
(Vanderbilt University, 2006)
In this paper we examine the behavior of a firm that produces a product with a privately-observed safety attribute; that is, consumers cannot observe directly the product¬πs safety. The firm may, at a cost, disclose its ...
On Indeterminacy in Two Sector Models with Factor Market Distortions: The Importance of VIPIRS
(Vanderbilt University, 2006)
Previous literature has shown that local indeterminacy and local instability can arise in two-sector models when factor market distortions create a divergence between capital intensity ranking of the sectors on a physical ...
Determinants of Slave Prices: Louisiana, 1725 to 1820
(Vanderbilt University, 2006)
We utilize a previously untapped data source, Gwendolyn Hall (1999), to examine the market for slaves in Louisiana, both in New Orleans and outside of New Orleans. We are able to study the process of price determination ...