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Since central banks have limited information concerning the transmission channel of monetary policy, they are faced with the di$cult task of simultaneously controlling the policy target and estimating the impact of policy actions. A tradeo! between estimation and control arises because policy actions in#uence estimation and provide information which may(More)
This paper analyzes the distortions created by taxation and the features of tax systems that minimize such distortions (subject to achieving other government objectives). It starts with a review of the theory and practice of deadweight loss measurement, followed by characterizations of optimal commodity taxation and optimal linear and nonlinear income(More)
General equilibrium models have been used for decades to obtain insights into the economic implications of policies and decisions. Despite successes, however, these economic models have substantive limitations. Many of these limitations are due to computational and methodological constraints that can be overcome by leveraging recent advances in computer(More)
Both distributed systems and multicore systems are difficult programming environments. Although the expert programmer may be able to carefully tune these systems to achieve high performance, the non-expert may struggle. We argue that high level abstractions are an effective way of making parallel computing accessible to the non-expert. An abstraction is a(More)
The author proposes a strategic model of entry that allows for positive and negative spillovers among firms. The model is applied to a novel data set containing information about the store configurations of all U.S. regional shopping centers and is used to quantify the magnitude of interstore spillovers. The author addresses the estimation difficulties that(More)
Both distributed systems and multicore computers are difficult programming environments. Although the expert programmer may be able to tune distributed and multicore computers to achieve high performance, the non-expert may struggle to achieve a program that even functions correctly. We argue that high level abstractions are an effective way of making(More)
Similar durations but lower flows into unemployment gave Europe lower unemployment rates than the United States until the 1970's. But since 1980, higher durations have kept unemployment rates in Europe persistently higher than in the U.S. A general equilibrium search model with human capital explains how these outcomes arise from the way Europe's higher(More)
A general equilibrium search model makes layoff costs affect the aggregate unemployment rate in ways that depend on equilibrium proportions of frictional and structural unemployment that in turn depend on the generosity of government unemployment benefits and skill losses among newly displaced workers. The model explains how, before the 1970s, lower flows(More)