Charles G. Nathanson

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Evolution is shaping the world around us. At the core of every evolutionary process is a population of reproducing individuals. The outcome of an evolutionary process depends on population structure. Here we provide a general formula for calculating evolutionary dynamics in a wide class of structured populations. This class includes the recently introduced(More)
We present an extrapolative model of bubbles. In the model, many investors form their demand for a risky asset by weighing two signals—an average of the asset’s past price changes and the asset’s degree of overvaluation. The two signals are in conflict, and investors “waver” over time in the relative weight they put on them. The model predicts that good(More)
A model in which homebuyers make a modest approximation leads house prices to display three features present in the data but usually missing from rational models: momentum at oneyear horizons, mean reversion at five-year horizons, and excess longer-term volatility relative to fundamentals. Approximating buyers assume that past prices reflect only(More)
This paper studies the role of speculation in amplifying housing cycles. Speculation is easier in the land market than in the housing market due to rental frictions. Therefore, speculation amplifies house price booms the most in cities with ample undeveloped land. This observation reverses the standard intuition that cities where construction is easier(More)
Taxation affects the allocation of talented individuals across industries by blunting material incentives and thus relatively magnifying the non-pecuniary benefits of pursuing a “calling”. If higher-paying industries (e.g. finance and management) generate less positive net externalities than lower-paying professions (e.g. public service and education) this(More)
This paper empirically and theoretically analyzes the effect of debt reductions that reduce long-term but not short-term obligations. Isolating the effect of future obligations allows us to test alternative explanations for borrower default decisions and to analyze the consumption response to mortgage principal reduction for underwater borrowers. Our(More)
We calibrate a dynamic model of housing in the spatial equilibrium tradition of Rosen and Roback to see whether such a model can fit the key empirical moments of the housing market such as the volatility and serial correlation of price changes and new construction. With reasonable parameter values, the model generates the empirically observed mean reversion(More)