We develop and analyze a model of strategic redistricting. Two parties choose redistricting plans to maximize their probability of winning a majority in the House of Representatives. We show that in the unique equilibrium parties maximally segregate their opponent’s supporters but pool their own supporters into uniform districts. Ceteris paribus, the stronger party segregates more than the weak...

Theoretical models of information asymmetry have identified a tradeoff between the desire to learn and the desire to prevent an opponent from learning private information. This paper reports a laboratory experiment that investigates if actual bidders account for this tradeoff, using a sequential procurement auction with private cost information and varying information revelation policies. Speci...

Credit constraints are more frequent among growth companies with large investment opportunities. For the same reason, profit taxes may harm innovative firms more than standard ones. This paper develops a model of heterogeneous firms where an endogenous share opts for innovation and faces credit constraints in the subsequent expansion phase. We emphasize four results: (i) R&D subsidies not only ...

This paper develops a small New Keynesian model with capital accumulation and government debt dynamics. The paper discusses the design of simple monetary and fiscal policy rules consistent with determinate equilibrium dynamics in the absence of Ricardian equivalence. Under this assumption, government debt turns into a relevant state variable which needs to be accounted for in the analysis of eq...

Distinguishing pure supply effects from other determinants of price and quantity in the market for loans is a notoriously difficult problem. Using German data, we employ Bayesian vector autoregressive models with sign restrictions on the impulse response functions in order to enquire the role of loan supply and monetary policy shocks for the dynamics of loans to non-financial corporations. For ...

In this paper we consider the adjustable robust approach to multistage optimization, for which we derive dynamic programming equations. We also discuss this from a point of view of risk averse stochastic programming. As an example we consider a robust formulation of the classical inventory model and show that, similar to the risk neutral case, a basestock policy is optimal.

In this paper we consider the adjustable robust approach to multistage optimization, for which we derive dynamic programming equations. We also discuss this from the point of view of risk averse stochastic programming.We consider as an example a robust formulation of the classical inventorymodel and show that, like for the risk neutral case, a basestock policy is optimal. © 2011 Elsevier B.V. A...

This survey systematizes the rapidly growing literature on influence of monetary policy and macroprudential macroeconomy. It examines impact financial cycle asks how instruments efficiency policy. The questions whether should take account lean against wind is also addressed. review shows that not neutral for stability, but into because costs probably outweigh benefits.

We use time-consistent coherent and Markov risk measure to study a risk-averse firm’s inventory and price control activities. Our dynamic programming model leads to optimal policy structures that are reminiscent of their risk-neutral counterparts. However, with risk aversion there emerge new patterns. First, monotone properties are derivable for the pricing policy when the convex risk set assoc...