Cross sectional estimation of convergence regressions is known to be hazardous if there is convergence towards heterogeneous steady state values. In this paper, Monte Carlo methods are used to investigate the implications of this parameter heterogeneity problem. The cross sectional and pooled OLS estimators are compared with a panel estimator which is unaffected by heterogeneity. If there is he...

We study a repeated game with asymmetric information about a dynamic state of nature. In the course of the game, the better informed player can communicate some or all of his information to the other. Our model covers costly and/or bounded communication. We characterize the set of equilibrium payoffs, and contrast these with the communication equilibrium payoffs, which by definition entail no c...

The systematic categorization of disorders, provided by the World Health Organization in the "International Statistical Classification of Diseases, Injuries and Causes of Death" (ICD) is an essential tool for epidemiological and clinical research, for the indexing of national and international statistics of morbidity and mortality, to monitor health services and to formulate public health polic...

In the present paper, the issue of the existence of optimal barter steady states is addressed in a stationary overlapping generations model with many commodities and many different long-lived consumers. A general characterization of the individual endowments leading to an optimal barter steady state is obtained. The result, which is a generalization of Benveniste and Cass (1986), is obtained as...

Using administrative data from the state of Georgia, this paper finds that, on average, across all firms, employing undocumented workers reduces a firm’s hazard of exit by 19 percent. The advantage to firms from employing undocumented workers increases as more firms in the industry do so, decreases with the skill level of the firm’s workers, increases with the breadth of a firm’s market, and in...

Within the private-values paradigm, we construct a tractable empirical model of equilibrium behaviour at first-price auctions when bidders’ valuations are potentially dependent, but not necessarily affiliated. We develop a test of affiliation and apply our framework to data from low-price, sealed-bid auctions held by the Department of Transportation in the State of Michigan to procure road-resu...

This paper shows that in a buffer stock saving model, wealth-to-income and other interesting variables have unique stable invariant distributions. Previously this ergodic property has only been conjectured and demonstrated numerically by means of simulations. The proof proceeds by extending earlier results about the existence and uniqueness of an ergodic distribution to Markov processes on non-...

The Labor Demand Was Downward Sloping: Disentangling Migrants’ Inflows and Outflows, 1929-1957 This paper studies inand out-migration from the U.S. during the first half of the twentieth century and assesses how these flows affected state-level labor markets. It shows that outmigration positively impacted the wages of remaining workers, while in-migration had a negative impact. Hence, immigrant...

We propose a game-theoretic model in which each firm chooses the level of economic activity on the basis of its own financial conditions and of the financial conditions of rival firms. The model generates the laws of motion of firms’ net worth which may determine convergence to a symmetric steady state or more complex dynamical behaviors, periodic or chaotic, depending on the values of the para...

This work consists on an analysis of the arguments used by Randall Holcombe to justify inevitability existence a monopoly services defence and security. We understand that his justification is incomplete because definition he uses, regarding need in provision this type, does not fit with Austrian public goods or monopoly. Besides, it take into account historical evidence these competition. Keyw...