This paper presents a model in which voters attempt to balance the ideological positions of their Senate representatives. Candidate positions are determined endogenously through a primary system. The median voter theorem is applied in each election to determine winning platforms based on voter preferences which may differ from their individual bliss points. Contrary to the original median voter...

This paper develops a dynamic stochastic general equilibrium (DSGE) model with sticky prices where agents have imperfect information on the stance and direction of monetary policy. Agents respond by using Kalman filtering to unravel persistent and temporary monetary policy changes in order to form optimal forecasts of future policy actions. Our results show that a sticky price model with imperf...

An open puzzle for climate-policy analysis is how policies could be made sensitive to climate change impacts spanning over centuries while keeping the shorterterm macroeconomic policies connected to the descriptive facts. We develop a tractable general-equilibrium model for climate-economy interactions with timedeclining pure discounting. The model resolves the puzzle: preferences over longterm...

Aggregate hours worked per working-age person decreased in Austria by 25% from 1970 to 2005. During the same time period, taxes increased, particularly the effective marginal tax rate on labor income. Using a standard general equilibrium growth model with taxes, I quantitatively assess the role played by the evolution of taxes on the evolution of hours worked in Austria. The model accounts for ...

This paper develops a new equilibrium model of two-sided search where agents have multiple attributes and general payoff functions. The model can be applied to several substantive issues. Here we use it to provide a novel understanding of the separate effects of equal opportunities for women in the labor market and improved contraception on female education, employment, and timing of first birt...

Idiosyncratic productivity shocks induce larger adjustments to hiring than aggregate shocks, because general equilibrium effects on search frictions and wages partially offset the latter. When firms cannot disentangle the two shocks, they attribute aggregate disturbances partly to idiosyncratic factors and to that extent, respond more aggressively. This translates into increased aggregate volat...

plentifulness of oil resources on the one hand, and serious economic challenges in the course of development of the country, on the other hand, makes the optimum use of these resources a considerable issue in achieving the goals of sustainable development. iran’s experience in establishing exchange reserve account (era) during 2000-2005 indicates that its main function is saving the surplus rev...

This paper studies an overlapping generations model with multiple securities and heterogeneously informed agents. There are two types of multiplicity of equilibria, one due to noisy rational expectations and the other resulting from self-fulfilling prophecies. Under general conditions, there exists an equilibrium in which stock returns are highly volatile and strongly correlated, even if all un...

111 We present a computable general equilibrium model of the interface between the Great Salt Lake (GSL) ecosystem and the regional economy that impacts the ecosystem. With respect to the ecosystem, the model treats the various representative species as net-energy maximizers and bases population dynamics on the period-by-period sizes of surplus net energy. Energy markets-where predators and pre...

We develop a two-period general equilibrium model of portfolio delegation with competitive, differentially skilled managers and convex compensation contracts. We show that convex incentives lead to significant equilibrium mispricing, but reduce price volatility. In particular, price informativeness and volatility may exhibit opposite behaviour. Investors do not internalize the externality that ...