In the context of priority-based allocation objects, we formulate methods to compare assignments in terms their stability. We introduce three basic properties that a reasonable stability comparison should satisfy. show for any satisfying properties, top trading cycles mechanism is minimally unstable among efficient and strategy-proof mechanisms when objects have unit capacities. Our unifying ap...

We propose a pseudo-market solution to resource allocation problems subject constraints. Our treatment of constraints is general: including bihierarchical due considerations diversity in school choice, or scheduling course allocation; and other forms needed model, for example, the market roommates, combinatorial assignment problems, knapsack Constraints give rise pecuniary externalities, which ...

We conduct lab experiments to investigate demand for consumption agency in married couples from Pakistan. Most subjects are no better at guessing their spouse's preferences than those of a stranger, suggesting that individual executive has instrumental value. find significant evidence all experiments, varying with the cost and anticipated benefit agency. But often make choices incompatible pure...

We analyze the interaction between risk sharing and capital accumulation in a stochastic OLG model with production. We give a complete characterization of interim Pareto optimal competitive equilibrium allocations. Furthermore, we provide tests of Pareto optimality/suboptimality based on (risky) rates of return only. © 2007 Elsevier Inc. All rights reserved. JEL classification: D61; D91; E13; E43

Lotteries are introduced into Cavalcanti and Erosa (2008) [2], a version of Trejos and Wright (1995) [4] with aggregate shocks. Lotteries improve welfare and eliminate the two notable features of the optimum with deterministic trades: over-production and history-dependence. Moreover, the optimum can be supported by buyer take-it-or-leave-it offers. © 2011 Elsevier Inc. All rights reserved. JEL ...

Credit default swaps (CDSs) are thought to ease borrowing by protecting lenders against default. This paper develops a model of the demand for CDS when borrowers choose the riskiness of investment and verification is imperfect. The model shows that CDSs may lead to risk-shifting, increasing the probability of default. Our model provides new insights on the role of CDS during the recent financia...

We model optimal e-cigarette regulation and estimate key parameters. Using tax changes scanner data, we relatively elastic demand. A demographic shift-share identification strategy suggests limited substitution between e-cigarettes cigarettes. field a new survey of public health experts who report that vaping is more harmful than previously believed. In our model’s average Monte Carlo simulatio...

This study examines the effect of labour market regulations on Greek tourism industry performance. The industry, steam engine economy, always drives to enhance efforts reach further savings in operating costs. However, that influence sector’s ability adjust costs have not been thoroughly investigated. We present a novel methodology permits evaluation technical and allocative efficiency one step...