This paper considers implications associated with a Supreme Court ruling that can be interpreted as supporting use of eminent domain in transferring property rights of one private agent—a landowner—to another private agent—a developer.
Green and Lin study a version of the Diamond-Dybvig model with a finite number of agents, independence (independent determination of each agent’s type), and sequential service.
Governments often have the power to take property rights from private citizens but their responsibility to pay compensation is typically not well specified.
We construct a simple environment that combines a limited communication friction and a limited information friction in order to generate a role for money and intermediation.
While the majority of job changers who state they were not fired or laid off choose jobs with wages that are higher than their previous jobs, a substantial proportion of these job changers choose jobs that have lower wages.
This paper provides a new rationale for hedging that is based, in part, on noncompetitive behavior in product markets. We identify a set of conditions which imply that a firm may want to hedge.
Gresham’s law, which says that bad money tends to drive good money out of circulation, may account for many nations’ episodes of money troubles, as far back as ancient Athens.
Arbitrage has become associated in popular attitudes with the most ruthless and profit-driven of human impulses, but the opposite reputation might be more well-deserved.
It wasn’t A Beautiful Mind—the book or the movie—that made John Forbes Nash, Jr., famous. It was his work in game theory, a theory that models strategic interactions between people as games.
In 2001, the Federal Reserve lowered the federal funds rate target more than it had in over 25 years, but long term interest rates didn’t budge. Has monetary policy become ineffective? Just the opposite, the authors argue.
