Why are some people wealthy while others are poor? To what extent can governments affect
inequality? Which instruments should they use? Answering these questions requires …

The debate between structural and reduced-form approaches has generated substantial
controversy in applied economics. This article reviews a recent literature in public …

We develop new evidence on the cumulative earnings losses associated with job
displacement, drawing on longitudinal Social Security records for US workers from 1974 to …

Using novel data on bank applications to the Troubled Asset Relief Program (TARP), we
study the effect of government assistance on bank risk taking. Bailed-out banks initiate …

The substantially revised fourth edition of a widely used text, offering both an introduction to
recursive methods and advanced material, mixing tools and sample applications. Recursive …

This paper presents new evidence on why unemployment insurance (UI) benefits affect
search behavior and develops a simple method of calculating the welfare gains from UI …

This paper studies the effects of progressive income taxes and education finance in a
dynamic heterogeneous‐agent economy. Such redistributive policies entail distortions to …

This paper constructs a tractable general equilibrium model of search with risk aversion. An
increase in risk aversion reduces wages, unemployment, and investment. Unemployment …

We find that the welfare gains to being at the optimum quantity of debt rather than the current
US level are small, and, therefore, concerns regarding the high level of debt in the US …

This paper considers the design of an optimal unemployment insurance system. The
problem is modeled as a repeated principalagent problem involving a risk-averse agent-the …