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Fairness and redistribution
Different beliefs about the fairness of social competition and what determines income inequality influence the redistributive policy chosen in a society. But the composition of income in equilibriumExpand
Volatility and growth: Credit constraints and the composition of investment
How does uncertainty and credit constraints affect the cyclical composition of investment and thereby volatility and growth? This paper addresses this question within a model where firms engage inExpand
The Hyperbolic Consumption Model: Calibration, Simulation, and Empirical Evaluation
Laboratory and field studies of time preference find that discount rates are much greater in the short run than in the long run. Hyperbolic discount functions capture this property. This paperExpand
Efficient Use of Information and Social Value of Information
This paper analyzes equilibrium and welfare for a tractable class of economies (games) that have externalities, strategic complementarity or substitutability, and heterogeneous information. First, weExpand
Volatility and Growth: Credit Constraints and Productivity-Enhancing Investment
We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby volatility and growth. We first develop a simple growth model where firms engage in twoExpand
Uninsured Idiosyncratic Investment Risk and Aggregate Saving
This paper augments the neoclassical growth model to study the macroeconomic effects of idiosyncratic investment risk. The general equilibrium is solved in closed form under standard assumptions forExpand
Signaling in a Global Game: Coordination and Policy Traps
This paper introduces signaling in a global game so as to examine the informational role of policy in coordination environments such as currency crises and bank runs. While exogenous asymmetricExpand
Transparency of Information and Coordination in Economies with Investment Complementarities
How do public and private information affect equilibrium allocations and social welfare in economies with investment complementarities? And what is the optimal transparency in the informationExpand
Animal Spirits ∗
This paper develops a novel theory of fluctuations, one that focuses on their self-fulfilling nature. In this theory, the economy features fluctuations that are orthogonal to the underlyingExpand
Dynamic Global Games of Regime Change: Learning, Multiplicity and Timing of Attacks
This work provides a simple recursive algorithm for the characterization of monotone equilibria and shows how the interaction of the knowledge that the regime survived past attacks with the arrival of information over time, or with changes in fundamentals, leads to interesting equilibrium properties. Expand