Thomas J. Sargent

FEDERAL RESERVE BANK OF ATLANTA (2008)

Preface vii

Thomas J. Sargent, Mark W. Watson

ABSTRACT. The dynamics of a linear (or linearized) dynamic stochastic economic model can be expressed in terms of matrices (A,B,C,D) that define a state space system for a vector of observables. An...

Macroeconomic Policy, Evolution, and Self-Confirming Equilibrium (2008)

SARGENT, Thomas J.

This paper uses policy disputes about centuries of experience with commodity money systems and US monetary policy in the 1970s and 1980s to illustrate macroeconomists' enduring struggles with Hume's...

WANTING ROBUSTNESS IN MACROECONOMICS (2007)

Lars Peter, Thomas J. Sargent

mathematical foundations that applied economists have used to construct quantitative dynamic models for policy making and empirical analyses. The mathematical

ACKNOWLEDGING MISSPECIFICATION IN MACROECONOMIC THEORY (2007)

Lars Peter, Thomas J. Sargent

Abstract. We explore methods for confronting model misspecication in macroeconomics. We construct dynamic equilibria in which private agents and policy makers recognize that models are...

Learning to be Credible (2007)

Neural Networks for Encoding and Adapting in Dynamic Economies (2007)

This paper was prepared for presentation at the conference to celebrate the Bank of

Alternative Monetary Policies in a Turnpike Economy* (2007)

this paper draw heavily on materials in chapters 3 and 4 of Sargent's Bounded Rationality in Macroeconomics, Oxford University Press, 1993. 2 Neural Networks for Encoding and Adapting in Dynamic...

By Rodolfo Manuelli, Thomas J. Sargent

: A version of a Townsend turnpike model is described in which agents stay at a location long enough to trade some consumption loans, but not long enough to support an Arrow-Debreu allocation....

An Appreciation of A. W. Phillips (2007)

Lars P. Hansen, Thomas J. Sargent

A way to honor A. W. Phillips is to describe the continuing influence of one of his enduring contributions to economic dynamics, his remarkable 1959 Biometrika paper about how discrete time...

Notes on Linear Control Theory (2007)

Alternative Monetary Policies in a Turnpike Economy (2007)

this paper use routines from the FORTRAN packages LAPACK, LINPACK and RICPACK. All of these packages can be obtained by anonymous ftp from netlib.att.com and various mirrors. MATLAB is a commercial...

Rodolfo Manuelli, Thomas J. Sargent

: A version of a Townsend turnpike model is described in which agents stay at a location long enough to trade some consumption loans, but not long enough to support an Arrow-Debreu allocation....

I. Rational Expectations versus Misspecification (2007)

The Term Structure of Real Interest Rates: Theory and Evidence from (2007)

We explore methods for confronting model misspecification in macroeconomics. We construct dynamic equilibria in which private agents and policy makers recognize that models are approximations. We...

Alex Monge, Marcelo Navarro, Antti Ripatti, Thomas J. Sargent, Pietro Veronesi

This paper studies the behavior of the default-risk free real term structure and term premia in two general equilibrium endowment economies with complete markets but without money. In the first...

2 Optimal Taxation without State-Contingent Debt (2007)

Albert Marcet, Thomas J. Sargent, Kenneth Judd, Martin Schneider, Nancy Stokey

To recover a version of Barro's (1979) `random walk ' tax smoothing outcome, we modify Lucas and Stokey's (1983) economy to permit only risk-free debt. This imparts near unit root like...

The European Employment Experience (2007)

Lars Ljungqvist And, Lars Ljungqvist, Thomas J. Sargent

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...

A Quartet of Semi-Groups for Model Specification, Detection, Robustness, and the Price of Risk (2007)

Evan W. Anderson, Lars Peter Hansen, Thomas J. Sargent

A representative agent fears that his model, a continuous time Markov process with jump and di#usion components, is misspecified and therefore uses robust control theory to make decisions. Under the...

European Unemployment and Turbulence (2007)

Revisited In Matching, Lars Ljungqvist, Thomas J. Sargent, Christian Haefke

We recalibrate den Haan, Haefke, and Ramey's matching model to capture our preferred specification of `turbulence', modelled in terms of the transition dynamics of human capital after...

Recursive Robust Estimation and Control Without Commitment (2006)

Dynamic macroeconomic theory (2005)

In a Markov decision problem with hidden state variables, a posterior distribution serves as a state variable and Bayes ’ law under an approximating model gives its law of motion. A decision maker...

Exercises in dynamic macroeconomic theory (2005)

Rodolfo E. Manuelli, Thomas J. Sargent, Thomas J. Sargent

IMPERFECT KNOWLEDGE THE CONQUEST OF U.S. INFLATION LEARNING AND ROBUSTNESS TO MODEL UNCERTAINTY 1 (2005)

Timothy Cogley, Thomas J. Sargent, Timothy Cogley, Thomas J. Sargent

In 2005 all ECB publications will feature a motif taken from the €50 banknote.

Anticipated Utility and Rational Expectations as Approximations of Bayesian Decion Making (2005)

FEDERAL RESERVE BANK OF ATLANTA (2005)

We study a Markov decision problem with unknown transition probabilities. We compute the exact Bayesian decision rule and compare it with two approximations. The first is an infinite-history,...

Comment on "Adaptive Learning and Monetary Policy Design" (2004)

ABSTRACT. The dynamics of a linear (or linearized) dynamic stochastic economic model can be expressed in terms of matrices (A,B,C,D) that define a state space system. An associated state space system...

"Certainty Equivalence" and "Model Uncertainty" (2004)

Journal of Money, Credit, and Banking - Volume 35, Number 6 (Part 2), December 2003

Comments and Discussion (2003)

Simon's and Theil's certainty equivalence property justifies a convenient algorithm for solving dynamic programming problems with quadratic objectives and linear transition laws: first,...

Leeper, Eric Michael., Sargent, Thomas J.

Brookings Papers on Economic Activity - 2003, 1

Robustness and Uncertainty Aversion (2002)

Lars Peter Hansen, Lars Peter, Hansen Thomas, Noah Williams, Thomas J. Sargent, Gauhar A. Turmuhambetova

Max-min expected utility theory uses multiple prior distributions to represent a decision maker's uncertainty aversion. Robust control theory models a decision maker who fears that the data are...

Drifts and volatilities: Monetary policies and outcomes in the post WWII U.S. (2002)

Laboratory Experiments with an Expectational Phillips Curve (2001)

For a VAR with drifting coefficients and stochastic volatilities, we present posterior densities for several objects that are of interest for designing and evaluating monetary policy. These include...

Jasmina Arifovic Simon, Thomas J. Sargent, Colin Camerer, Timothy Cogley, Tom Palfrey, Christopher Sims

We pay human subjects to be the policy maker and the public in an expectational Phillips curve model. Policy makers often find ways to achieve the time-inconsistent optimal inflation rate, at least...

Optimal Taxation without State-Contingent Debt (2001)

Rao Aiyagari, Albert Marcet, Thomas J. Sargent, Juha Seppälä

In Lucas and Stokey's (1983) economy, tax rates inherit the serial correlation structure of government expenditures, belying Barro's (1979) result that taxes should be a random walk for any...

European Unemployment: From a Worker’s Perspective (2001)

Lars Ljunqvist, Thomas J. Sargent

After several decades of low unemployment rates and low mean durations of unemployment, European countries experienced high rates and average durations of unemployment during the 1980’s and...

Robustness, Detection and the Price of Risk (2000)

Evan W. Anderson, Lars Peter Hansen, Thomas J. Sargent

This paper is about models with agents whose doubts about model specification cause them to value decision rules that perform well across a set of models. Agents fear difficult-to-detect...

Comment on `Fiscal Consequences for Mexico of Adopting the Dollar' by Christopher A. Sims (2000)

Christopher A. Sims, Thomas J. Sargent

Introduction A main argument in Sims's paper is that by dollarizing, Mexico would for practical purposes stop issuing state-contingent debt, which it now issues as nominal debt. The nominal debt...

Optimal Taxation without State-Contingent Debt (2000)

Albert Marcet, Thomas J. Sargent, Juha Seppälä, Thank Lars Hansen, V. V. Chari, Darrell Due, ...

In Lucas and Stokey's (1983) economy, tax rates inherit the serial correlation structure of government expenditures, belying Barro's (1979) result that taxes should be a random walk for any...

Escaping Nash Inflation (2000)

In-Koo Cho, Thomas J. Sargent, Working Pa, Working Pa, Thoma J. Sa, Thoma J. Sa, ...

this paper obtains analytical characterizations of those escape dynamics.

Robust Permanent Income and Pricing with Filtering (2000)

Lars Peter Hansen, Thomas J. Sargent, Neng E. Wang, Prof Thomas, J. Sargent

A planner and agent in a permanent income economy cannot observe part of the state, regard their model as an approximation, and value decision rules that are robust across a set of models. They use...

Robust Control and Filtering of Forward-Looking Models (2000)

Robust Control and Filtering of Forward-Looking Models (2000)

This paper shows how to compute robust Ramsey (aka Stackelberg) plans for linear models with forward looking private agents. We formulate a Bellman equation for the robust plan. We describe robust...

Optimal Taxation without State-Contingent Debt (2000)

This paper shows how to compute robust Ramsey (aka Stackelberg) plans for linear models with forward looking private agents. We formulate a Bellman equation for the robust plan. We describe robust...

Albert Marcet, Thomas J. Sargent, Juha Seppälä, Kenneth Judd, Martin Schneider, ...

To recover a version of Barro's (1979) `random walk' tax smoothing outcome, we modify Lucas and Stokey's (1983) economy to permit only risk-free debt. This imparts near unit root like...

Five Games and Two Objective Functions that Promote Robustness (1999)

Lars Peter Hansen, Thomas J. Sargent, Larry Jones, Rodolfo Manuelli

Robust decision rules are designed to work well despite a set of possible model misspecifications. For discounted infinite horizon linear quadratic control problems, we describe two frequency domain...

Discussion of "Can Market and Voting Institutions Generate Optimal Intergenerational Risk Sharing?" by Antonio Rangel and Richard Zeckhauser (1999)

Antonio Rangel, Richard Zeckhauser, Thomas J. Sargent

This paper takes up an important issue from an interchange among Muench (1977), Lucas (1977), and Peled (1982): how to compare consumption allocations in an overlapping generations economy. Rangel...

Robustness and Commitment: A Monetary Policy Example (1999)

Escaping Nash Inflation (1999)

This paper

In-koo Cho, Thomas J. Sargent, Michael Harrison

Mean dynamics govern convergence to rational expectations equilibria of self-referential systems under least squares learning. We highlight escape dynamics that propel away from a rational...

Robust Permanent Income and Pricing (1999)

By Lars Peter, Lars Peter Hansen, Thomas J. Sargent, Thomas D. Tallarini

This paper studies consumption and savings profiles and security market prices in a permanent income model when consumers are robust decision makers. Robust decision makers and expected utility...

Robust Permanent Income and Pricing (1999)

Lars Peter Hansen, Thomas J. Sargent, Thomas D. Tallarini

This paper studies consumption and savings pro#les and security market prices in a permanent income model when consumers are robust decision makers. Robust decision makers and expected utility...

Robust Permanent Income and Pricing (1999)

Lars Peter Hansen, Thomas J. Sargent, Thomas D. Tallarini

This paper studies consumption and savings profiles and security market prices in a permanent income model when consumers are robust decision makers. Robust decision makers and expected utility...

Optimal fiscal policy in a linear stochastic economy (1998)

Projected U.S. Demographics and Social Security (1998)

those of the Federal Reserve Bank of Chicago or the Federal Reserve System.

Mariacristina De Nardi, Selahattin Imrohoroglu, Thomas J. Sargent

this paper at the Federal Reserve Macro System Committee Meeting, the University of Minnesota, the London School of Economics, the Universitat Pompeu Fabra and the 1998 Latin American and Caribbean...

The European Unemployment Dilemma (1998)

By Lars Ljungqvist, Thomas J. Sargent

Introduction During their first decades, European welfare states exhibited unemployment rates equal to or less than those of other market economies; but in the 1980's, they suffered large...

The Big Problem of Small Change (1998)

Discussion of `Policy Rules for Open Economies' by Laurence Ball (1998)

this paper, and traces England's inability to adopt the gold standard before the 19th century to the problem of small change. She finds that "technological di#culties (the threat of...

Laurence Ball, Thomas J. Sargent

mpatible with Ball's motivation of his work as a sensitivity exercise designed to explore how augmenting the government's model to incorporate aspects of a foreign sector will a#ect the...

Risk and Robustness in General Equilibrium (1998)

Evan W. Anderson, Lars Peter Hansen, Thomas J. Sargent

This paper extends the analysis of HST to economies with equilibrium allocations that solve continuous time optimal resource allocation problems. Most of our results exploit the analytical...

Coinage, Debasements, and Gresham's Laws (1997)

Thomas Sargent Hoover, Thomas J. Sargent, Bruce D. Smith, Francois Velde, Neil Wallace, Warren Weber, ...

this paper, we use a model in which coins circulate by face value or tale to explain this behavior. Modelling circulation by tale elucidates this `debasement puzzle' (a phrase of Rolnick, Weber,...

Two Computations to Fund Social Security (1997)

He Huang, Thomas J. Sargent

We use a general equilibrium model to study the impact of fully funding social security on the distribution of consumption across cohorts and over time. In an initial stationary equilibrium with an...

Accounting for the Federal Government's Cost of Funds (1997)

George Hall And, George J. Hall, Thomas J. Sargent, For Example, The New York

This paper extends estimates and arguments from Sargent (1993).

The European Unemployment Dilemma (1997)

Accounting for the Federal Government's Cost of Funds (1997)

Introduction During their first decades, European welfare states exhibited unemployment rates equal to or less than those of other market economies; but in the 1980's, they suffered large...

George J. Hall, Thomas J. Sargent, For Example, The New York

This paper extends estimates and arguments from Sargent (1993).

Learning to be Credible (1997)

Robust Permanent Income and Pricing (1997)

This paper was prepared for presentation at the conference to celebrate the Bank of Portugal's 150

Lars Peter Hansen, Thomas J. Sargent, Thomas D. Tallarini, John Heaton, Narayana Kocherlakota, ...

This paper uses a permanent income model as a laboratory to study how consumption /savings profiles and security market prices are altered when consumers are `robust decision makers'. Robust...

Optimal Taxation without State-Contingent Debt (1996)

Marcet, Albert, Sargent, Thomas J., Seppälä, Juha

To recover a version of Barro's (1979) `random walk' tax smoothing outcome, we modify Lucas and Stokey's (1983) economy to permit only risk--free debt. This imparts near unit root like behavior to...

The European Unemployment Dilemma (1996)

LJUNGQVIST, Lars, SARGENT, Thomas J.

The European Unemployment Dilemma (1996)

LJUNGQVIST, Lars, SARGENT, Thomas J.

The European Unemployment Dilemma (1996)

LJUNGQVIST, Lars, SARGENT, Thomas J.

Mechanics of Forming and Estimating Dynamic Linear Economies (1996)

Evan W. Anderson, Lars Peter Hansen, Ellen R. Mcgrattan, Ellen R. Mcgrattan, Thomas J. Sargent, Thomas J. Sargent

This paper catalogues formulas that are useful for estimating dynamic linear economic models. We describe algorithms for computing equilibria of an economic model and for recursively computing a...

Mechanics of Forming and Estimating Dynamic Linear Economies (1996)

Evan W. Anderson, Evan W. Anderson, Lars Peter Hansen, Lars Peter Hansen, Ellen R. Mcgrattan, Ellen R. Mcgrattan, ...

This paper catalogues formulas that are useful for estimating dynamic linear economic models. We describe algorithms for computing equilibria of an economic model and for recursively computing a...

Two Computations to Fund Social Security (1996)

He Huang, Selahattin Imrohoroglu, Thomas J. Sargent

We use a general equilibrium model to study the impact of fully funding social security on the distribution of consumption across cohorts and over time. In an initial stationary equilibrium with an...

Neural Networks for Encoding and Adapting in Dynamic Economies (1995)

An Appreciation of A.W. Phillips (1995)

this paper draw heavily on materials in chapters 3 and 4 of Sargent's Bounded Rationality in Macroeconomics, Oxford University Press, 1993. 2 Neural Networks for Encoding and Adapting in Dynamic...

Lars P. Hansen, Thomas J. Sargent

A way to honor A. W. Phillips is to describe the continuing influence of one of his enduring contributions to economic dynamics, his remarkable 1959 Biometrika paper about how discrete time...

Coinage, Debasements, and Gresham's Laws (1995)

Thomas J. Sargent, Bruce D. Smith, Neil Wallace, Warren Weber

this paper, we use a model in which coins circulate by face value or tale to explain this behavior. Modelling circulation by tale elucidates this `debasement puzzle' (a phrase of Rolnick, Weber,...

Discounted Linear Exponential Quadratic Gaussian Control (1994)

Research Department Federal Reserve Bank of Richmond April 22, 1994 (1994)

: We describe a recursive formulation of discounted costs for a linear quadratic exponential Gaussian linear regulator problem which implies time-invariant linear decision rules in the infinite...

Pr Il, Raymond E. Owens, John E. Leonard, Thomas J. Sargent

: Overbuilding in commercial real estate in the 1980s is commonly viewed as an example of a speculative bubble. This paper questions that view and proposes an environment in which overbuilding could...

A dynamic index model for large cross sections (1993)

Quah, Danny, Sargent, Thomas J

This paper shows how standard methods can be used to formulate and estimate a dynamic index model for random fields - stochastic processes indexed by time and cross section where the time-series and...

A dynamic index model for large cross sections (1993)

Quah, Danny, Sargent, Thomas J

This paper shows how standard methods can be used to formulate and estimate a dynamic index model for random fields - stochastic processes indexed by time and cross section where the time-series and...

A dynamic index model for large cross sections (1993)

Quah, Danny, Sargent, Thomas J

MILTON, MONEY, AND MISCHIEF: SYMPOSIUM AND ARTICLES IN HONOR OF MILTON FRIEDMAN'S 80TH BIRTHDAY (1993)

JORDAN, JERRY L., MELTZER, ALLAN H., SCHWARTZ, ANNA J., SARGENT, THOMAS J.

Macroeconomic Theory (1987)

Macroeconomic Theory / T. J. Sargent. (1987)

Dymamic macroeconomic theory / Thomas J. Sargent (1987)

Exercises in dinamic macroeconomic theory / Rodolfo E. Manuelli and Thomas J. Sargent (1987)

Incluye bibliografía e índice

Manuelli, Rodolfo E, Sargent, Thomas J

Incluye bibliografía e índice

Teoría macroeconómica / Thomas J. Sargent (1982)

Teoría macroeconómica / Thomas J. sargent (1982)

Traducción de: Macroeconomic theory

Macroeconomic theory / Thomas J. Sargent (1979)

Traducción de: Macroeconomic theory

Knowing the Forecasts of Others

Incluye bibliografía e índice

Joseph G. Pearlman, Thomas J. Sargent

We apply recursive methods to obtain a finite dimensional and recursive representation of an equilibrium of one of Townsend's models of 'forecasting the forecasts of others'. The equilibrium has the...

Jobs and Unemployment in Macroeconomic Theory: A Turbulence Laboratory

Mechanics of forming and estimating dynamic linear economies

We use three general equilibrium frameworks with jobs and unemployed workers to study the effects of government mandated unemployment insurance (UI) and employment protection (EP). To illuminate the...

Lars Peter Hansen, Ellen R. McGrattan, Thomas J. Sargent

This paper catalogues formulas that are useful for estimating dynamic linear economic models. We describe algorithms for computing equilibria of an economic model and for recursively computing a...

On the mechanics of forming and estimating dynamic linear economies

Evan W. Anderson, Lars Peter Hansen, Ellen R. McGrattan, Thomas J. Sargent

This paper catalogues formulas that are useful for estimating dynamic linear economic models. We describe algorithms for computing equilibria of an economic model and for recursively computing a...

Regression with Non-Gaussian Stable Disturbances: Some Sampling Results.

Blattberg, Robert, Sargent, Thomas J

Mechanics of forming and estimating dynamic linear economies

Anderson, Evan W., McGrattan, Ellen R., Hansen, Lars Peter, Sargent, Thomas J., H. M. Amman, D. A. Kendrick, ...

Neural networks for encoding and adapting in dynamic economies

Cho, In-Koo, Sargent, Thomas J., H. M. Amman, D. A. Kendrick, J. Rust

Optimal Fiscal Policy in a Linear Stochastic Economy

Bayesian fan charts for U.K. inflation: Forecasting and sources of uncertainty in an evolving monetary system

This code supports the text in Thomas J. Sargent and Francois R. Velde, Optimal Fiscal Policy in a Linear Stochastic Economy, in Ramon Marimon and Andrew Scott (eds), Computational Methods for the...

Cogley, Timothy, Morozov, Sergei, Sargent, Thomas J.

Drift and Volatilities: Monetary Policies and Outcomes in the Post WWII U.S.

Impacts of Priors on Convergence and Escapes from Nash Inflation

For a VAR with drifting coefficients and stochastic volatilities, we present posterior densities for several objects that are pertinent for designing and evaluating monetary policy. These include...

Thomas J. Sargent, Noah William

Recent papers have analyzed how economies with adaptive agents may converge to and escape from self-confirming equilibria. These papers have imputed to agents a particular prior about drifting...

Knowing the Forecasts of Others

Joseph G. Pearlman, Thomas J. Sargent

We apply recursive methods to obtain a finite dimensional and recursive representation of an equilibrium of one of Townsend's models of 'forecasting the forecasts of others'. The equilibrium has the...

The conquest of US inflation: Learning and robustness to model uncertainty

Macroeconomic Features of the French Revolution.

Previous studies have interpreted the rise and fall of US inflation after World War II in terms of the Fed's changing views about the natural rate hypothesis but have left an important question...

Sargent, Thomas J, Velde, Francois R

This paper describes aspects of the French Revolution from the perspective of theories about money and government budget constraints. The authors describe how unpleasant fiscal arithmetic gripped the...

The European Unemployment Experience: Theoretical Robustness

Thomas J. Sargent, Lars Ljungqvist

European unemployment

Optimal Taxation without State-Contingent Debt

S. Rao Aiyagari, Albert Marcet, Thomas J. Sargent, Juha Seppala

In an economy studied by Lucas and Stokey, tax rates inherit the serial correlation structure of government expenditures, belying Barro's earlier result that taxes should be a random walk for any...

Chapter 4 Mechanics of forming and estimating dynamic linear economies

Anderson, Evan W., McGrattan, Ellen R., Hansen, Lars Peter, Sargent, Thomas J.

Chapter 9 Neural networks for encoding and adapting in dynamic economies

Cho, In-Koo, Sargent, Thomas J.

A, B, C's (and D)'s for Understanding VARs

Jesus Fernandez-Villaverde, Juan Rubio-Ramirez, Thomas J. Sargent

The dynamics of a linear (or linearized) dynamic stochastic economic model can be expressed in terms of matrices (A,B,C,D) that define a state space system. An associated state space system...

Robust estimation and control under commitment

Politics and efficiency of separating capital and ordinary Government budgets

Marco Bassetto, Thomas J. Sargent

We analyze the democratic politics and competitive economics of a ‘golden rule’ that separates capital and ordinary account budgets and allows a government to issue debt to finance only capital...

Drift and Volatilities: Monetary Policies and Outcomes in the Post WWII U.S.

Impacts of Priors on Convergence and Escapes from Nash Inflation

For a VAR with drifting coefficients and stochastic volatilities, we present posterior densities for several objects that are pertinent for designing and evaluating monetary policy. These include...

Thomas J. Sargent, Noah William

Recent papers have analyzed how economies with adaptive agents may converge to and escape from self-confirming equilibria. These papers have imputed to agents a particular prior about drifting...

Interpreting the Reagan deficits

Economic and VAR Shocks: What Can Go Wrong?

Budget deficits ; Expenditures, Public

Jesús Fernández-Villaverde, Thomas J. Sargent

Bayesian Fan Charts for U.K. Inflation: Forecasting and Sources of Uncertainty in an Evolving Monetary System

Timothy Cogley, Sergei Morozov, Thomas J. Sargent

We estimate a Bayesian vector autoregression for the U.K. with drifting coefficients and stochastic volatilities. We use it to characterize posterior densities for several objects that are useful for...

A Quartet of Semigroups for Model Specification, Robustness, Prices of Risk, and Model Detection

Evan W. Anderson, Lars Peter Hansen, Thomas J. Sargent

A representative agent fears that his model, a continuous time Markov process with jump and diffusion components, is misspecified and therefore uses robust control theory to make decisions. Under the...

European Unemployment and Turbulence Revisited in a Matching Model

Introduction to model uncertainty and robustness

We recalibrate den Haan, Haefke, and Ramey's matching model to incorporate our preferred specification of "turbulence" as causing distinct dynamics of human capital after voluntary and involuntary...

Hansen, Lars Peter, Maenhout, Pascal, Rustichini, Aldo, Sargent, Thomas J., Siniscalchi, Marciano M.

Robust control and model misspecification

Hansen, Lars Peter, Sargent, Thomas J., Turmuhambetova, Gauhar, Williams, Noah

Convergence of least squares learning mechanisms in self-referential linear stochastic models

Marcet, Albert, Sargent, Thomas J.

Estimating vector autoregressions using methods not based on explicit economic theories

After Keynesian macroeconomics

Rational expectations and the reconstruction of macroeconomics

Some unpleasant monetarist arithmetic

Speculations about the speculation against the Hong Kong dollar

David T. Beers, Thomas J. Sargent, Neil Wallace

A reply to Darby

Preston J. Miller, Thomas J. Sargent

Do Taxes Explain European Employment? Indivisible Labour, Human Capital, Lotteries and Savings

Benefits from U.S. Monetary Policy Experimentation in the Days of Samuelson and Solow and Lucas

Adding generous government supplied benefits to Prescott's (2002) model with employment lotteries and private consumption insurance causes employment to implode and prevents the model from matching...

TIMOTHY COGLEY, RICCARDO COLACITO, THOMAS J. SARGENT

A policy maker knows two models. One implies an exploitable inflation-unemployment trade-off, the other does not. The policy maker's prior probability over the two models is part of his state vector....

Escaping Nash inflation.

In-Koo Cho, Thomas J. Sargent

Mean dynamics govern convergence to rational expectations equilibria of self-referential systems under least squares learning. We highlight escape dynamics that propel away from a rational...

Taxes, Benefits, and Careers: Complete Versus Incomplete Markets

Rational Expectations, the Real Rate of Interest, and the Natural Rate of Unemployment

An incomplete markets life-cycle model with indivisible labour makes career lengths and human capital accumulation respond to labour tax rates and government supplied non-employment benefits. We...

"Rational Expectations": A Correction

macroeconomics, real rate interest, unemployment rate

Introduction to Robustness

macroeconomics, rational expectations, unemployment

The Dimensionality of the Aliasing Problem in Models with Rational Spectral Densities.

The standard theory of decision making under uncertainty advises the decision maker to form a statistical model linking outcomes to decisions and then to choose the optimal distribution of outcomes....

Hansen, Lars Peter, Sargent, Thomas J

Robust Control and Model Uncertainty

The Fate of Systems with "Adaptive" Expectations.

Marcet, Albert, Sargent, Thomas J

Autoregressions, Expectations, and Advice.

Beyond Demand and Supply Curves in Macroeconomics.

The Elasticity of Substitution and Cyclical Behavior of Productivity, Wages, and Labor's Share.

Monetary and Fiscal Policy in a Two-Sector Aggregative Model.

Henderson, Dale W, Sargent, Thomas J

The analytics of German monetary unification

Flat rate taxes with adjustment costs and several capital stocks and household types

Germany ; Fiscal policy ; Mark, German

Lars P. Hansen, Thomas J. Sargent

Flat-rate income tax ; Econometric models

Impacts of priors on convergence and escapes from Nash inflation

Thomas J. Sargent, Noah Williams

Recent papers have analyzed how adaptive agents may converge to and escape from self-confirming equilibria. All of these papers have imputed to agents a particular prior about drifting coefficients....

Drifts and volatilities: monetary policies and outcomes in the post WWII U.S.

Monetary and fiscal policy in a two-sector aggregative model

For a VAR with drifting coefficients and stochastic volatilities, the authors present posterior densities for several objects that are of interest for designing and evaluating monetary policy. These...

Dale W. Henderson, Thomas J. Sargent

Observations on Improper Methods of Simulating and Teaching Friedman's Time Series Consumption Model.

The Demand for Money During Hyperinflations under Rational Expectations: I.

Rational Expectations and the Dynamics of Hyperinflation.

On the Preservation of Deterministic Cycles when some Agents Perceive them to be Random Fluctuations (Now published in Journal of Economic Dynamics and Control, vol.17 (1993), pp.705-721.)

George W. Evans, Seppo Honkapohja, Thomas J. Sargent

A, B, C’s (And D’s) For Understanding VARS

Jesus Fernandez-Villaverde, Thomas J. Sargent

The dynamics of a linear (or linearized) dynamic stochastic economic model can be expressed in terms of matrices (A,B,C,D) that define a state space system. An associated state space system (A,K,C,...

Robust Permanent Income and Pricing with Filtering.

Hansen, Lars Peter, Sargent, Thomas J, Wang, Neng E

A planner and agent in a permanent-income economy cannot observe part of the state, regard their model as an approximation, and value decision rules that are robust across a set of models. They use...

Two Computations to Fund Social Security.

Huang, He, Imrohoroglu, Selahattin, Sargent, Thomas J

Comment on "Stopping Inflation, Big and Small."

Comment on Fiscal Consequences for Mexico of Adopting the Dollar.

The Big Problem of Small Change.

Sargent, Thomas J, Velde, Francois R

The medieval money supply mechanism implemented a commodity standard throughout the denomination structure by imposing mint and melt points for each coin. Mints stood ready to sell (but not to buy)...

Interest Rates and Prices in the Long Run: A Study of the Gibson Paradox.

Rational Expectations and the Term Structure of Interest Rates.

A Note on the 'Accelerationist' Controversy.

Market Transaction Costs, Asset Demand Functions, and the Relative Potency of Monetary and Fiscal Policy.

Money-Market Rates, the Discount Rate, and Borrowing from the Federal Reserve.

Frost, Peter A, Sargent, Thomas J

Robust control of forward-looking models

Expectations and the nonneutrality of Lucas

Interpreting new evidence about China and U.S. silver purchases

Brandt, Loren, Sargent, Thomas J.

Straight time and overtime in equilibrium

Hansen, Gary D., Sargent, Thomas J.

A model of commodity money

Sargent, Thomas J., Wallace, Meil

A note on maximum likelihood estimation of the rational expectations model of the term structure

Seasonality and portfolio balance under rational expectations

Saracoglu, Rusdu, Sargent, Thomas J.

A little bit of evidence on the natural rate hypothesis from the U.S.

Neftci, Salih, Sargent, Thomas J.

Rational expectations and the theory of economic policy

Sargent, Thomas J., Wallace, Neil

Israel 1983: A Bout of Unpleasant Monetarist Arithmetic

Sargent, Thomas J, Zeira, Joseph

From 1970 to 1985, Israel experienced high inflation. It rose in three jumps to new plateaus and eventually exceeded 400% per annum. This paper claims that anticipated monetary and fiscal effects of...

A primer on monetary and fiscal policy

On the preservation of deterministic cycles when some agents perceive them to be random fluctuations

Evans, George W., Honkapohja, Seppo, Sargent, Thomas J.

Equilibrium with signal extraction from endogenous variables

Money as a medium of exchange in an economy with artificially intelligent agents

Marimon, Ramon, McGrattan, Ellen, Sargent, Thomas J.

Formulating and estimating dynamic linear rational expectations models

Ambiguity in American monetary and fiscal policy

Understanding European unemployment with matching and search-island models

Understanding European unemployment with a representative family model

Rational Expectations, the Real Rate of Interest, and the Natural Rate of Unemployment

"Rational Expectations": A Correction

macroeconomics, real rate interest, unemployment rate

Certainty equivalence and model uncertainty

macroeconomics, rational expectations, unemployment

Recursive robust estimation and control without commitment

Simon’s and Theil’s certainty equivalence property justifies a convenient algorithm for solving dynamic programming problems with quadratic objectives and linear transition laws: first, optimize...

Projected U.S. Demographics and Social Security

Mariacristina De Nardi, Selahattin Imrohoroglu, Thomas J. Sargent

Without policy reforms, the aging of the U.S. population is likely to increase the burden of the currently unfunded social security and medicare systems. In this paper we build an applied general...

"Tobin's q" and the rate of investment in general equilibrium

The Optimum Monetary Instrument Variable in a Linear Economic Model.

ANTICIPATED UTILITY AND RATIONAL EXPECTATIONS AS APPROXIMATIONS OF BAYESIAN DECISION MAKING

The conquest of U.S. inflation: learning and robustness to model uncertainty

We study a Markov decision problem with unknown transition probabilities. We compute the exact Bayesian decision rule and compare it with two approximations. The first is an infinite-history,...

Two Questions about European Unemployment

Previous studies have interpreted the rise and fall of U.S. in ation after World War II in terms of the Fed's changing views about the natural rate hypothesis but have left an important question...

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...

Foreward

ABCs (and Ds) of Understanding VARs

Jesús Fernández-Villaverde, Thomas J. Sargent, Mark W. Watson

The dynamics of a linear (or linearized) dynamic stochastic economic model can be expressed in terms of matrices (A, B, C, D) that define a state space system for a vector of observables. An...

Commentary on "Long-run risks and financial markets"

Evolution and Intelligent Design

Financial markets ; Risk

Cho, In-Koo, Williams, Noah, Sargent, Thomas J

Escaping Nash Inflation.

An ordinary differential equation (ODE) gives the mean dynamics that govern the convergence to self-confirming equilibria of self-referential systems under discounted least squares learning. Another...

Robust Permanent Income and Pricing.

Hansen, Lars Peter, Sargent, Thomas J

Seasonality and approximation errors in rational expectations models

The Stability of Models of Money and Growth with Perfect Foresight.

Irrelevance of Open Market Operations in Some Economies with Government Currency Being Dominated in Rate of Return.

Sargent, Thomas J, Smith, Bruce D

Money Within the General Framework of the Economic System: Discussion.

The Swedish unemployment experience

A note on Wiener-Kolmogorov prediction formulas for rational expectations models

Aggregation over Time and the Inverse Optimal Predictor Problem for Adaptive Expectations in Conginuous Time.

Hansen, Lars Peter, Sargent, Thomas J

The Demand for Money during Hyperinflation under Rational Expectations: II.

Salemi, Michael K, Sargent, Thomas J

Rational expectations, econometric exogeneity and consumption

A note on maximum likelihood estimation of the rational expectations model of the term structure

Consumption (Economics) ; Econometrics

Estimation of dynamic labor demand schedules under rational expectations

"Tobin's q" and the rate of investment in general equilibrium

A dynamic linear demand schedule for labor is estimated and tested. The hypothesis of rational expectations and assumptions about the orders of the Markov processes governing technology impose...

Interpreting economic time series

Methods for estimating continuous time Rational Expectations models from discrete time data

This paper explores some of the implications for econometric practice of the principle that people’s observed behavior will change when their constraints change. In dynamic contexts, a proper...

Rational expectations models and the aliasing phenomenon

This paper describes methods for estimating the parameters of continuous time linear stochastic rational expectations models from discrete time observations. The economic models that we study are...

The real bills doctrine vs. the quantity theory: a reconsideration

This paper shows how the cross-equation restrictions delivered by the hypothesis of rational expectations can serve to solve the aliasing identification problem. It is shown how the rational...

A note on Wiener-Kolmogorov prediction formulas for rational expectations models

On our interpretation, real bills advocates favor unfettered intermediation, while their critics, who we call quantity theorists, favor legal restrictions on intermediation geared to separate...

Instrumental variables procedures for estimating linear rational expectations models

A prediction formula for geometrically declining sums of future forcing variables is derived for models in which the forcing variables are generated by a vector autoregressive-moving average process....

Exact linear rational expectations models: specification and estimation

A prediction formula for geometrically declining sums of future forcing variables is derived for models in which the forcing variables are generated by a vector autoregressive-moving average process....

The dimensionality of the aliasing problem in models with rational spectral densities

This paper describes how to specify and estimate rational expectations models in which there are exact linear relationships among variables and expectations of variables that the econometrician...

Aggregation over time and the inverse optimal predictor problem for adaptive expectations in continuous time

This paper reconsiders the aliasing problem of identifying the parameters of a continuous time stochastic process from discrete time data. It analyzes the extent to which restricting attention to...

Formulating and estimating continuous time rational expectations models

This paper describes the continuous time stochastic process for money and inflation under which Cagan’s adaptive expectations model is optimal. It then analyzes how data formed by sampling money...

Beyond demand and supply curves in macroeconomics

This paper proposes a method for estimating the parameters of continuous time, stochastic rational expectations models from discrete time observations. The method is important since various heuristic...

Identification of continuous time rational expectations models from discrete time data

This paper surveys recent issues in macroeconomics from the viewpoint of dynamic economic theory. The need to look beyond demand and supply curves and the insights that come from doing so are...

A model of commodity money

This paper shows how the cross-equation restrictions implied by dynamic rational expectations models can be used to resolve the aliasing identification problem. Using a continuous time,...

The European unemployment dilemma

Commodity money is modeled as one or two of the capital goods in a one-consumption good and one or two capital-good, overlapping generations model. Among the topics addressed using versions of the...

The evolution of small change

Unemployment - Europe

The big problem of small change

Western Europe was plagued with currency shortages from the 14th to the 19th century, at which time a `standard formula' had been devised to cure the problem. We document the evolution of mon- etary...

Recursive linear models of dynamic economies

Western Europe was plagued with currency shortages from the 14th century, at which a 'standard formula' had been devised to cure the problem. We use a cash-in-advance model of commodity money to...

Flat rate taxes with adjustment costs and several capital stocks and household types

Econometric models

A dynamic index model for large cross sections

Flat-rate income tax ; Econometric models

Danny Quah, Thomas J. Sargent

This paper shows how standard methods can be used to formulate and estimate a dynamic index model for random fields—stochastic processes indexed by time and cross section where the time-series and...

A supply-side explanation of European unemployment

Accounting for the federal government's cost of funds

This article offers a supply-side explanation of striking patterns in unemployment rates and duration of unemployment in European countries, compared with other member countries of the OECD...

George J. Hall, Thomas J. Sargent

This article describes and defends the authors' corrections to the federal government's flawed measure of its cost of funds. Further, it examines how the maturity structure of the debt influences the...

Commentary : the evolution of economic understanding and postwar stabilization policy

Projected U.S. demographics and social security

Economic stabilization ; Fiscal policy ; Monetary policy

Mariacristina De Nardi, Selahattin Imrohoglu, Thomas J. Sargent

Without policy reforms, the aging of the U.S. population is likely to increase the burden of the currently unfunded social security and medicare systems. In this paper we build an applied general...

Politics and efficiency of separating capital and ordinary Government budgets

Marco Bassetto, Thomas J. Sargent

We analyze the democratic politics and competitive economics of a ‘golden rule’ that separates capital and ordinary account budgets and allows a government to issue debt to finance only capital...

Interest rates and prices in the long run: a study of the Gibson paradox

Rational expectations and the theory of economic policy

Interest rates

Dynamic analysis of a Keynesian model

Monetary policy - Mathematical models

Unemployment and stabilization policy in a two-sector, two-country aggregative model

Keynesian economics

Dale W. Henderson, Thomas J. Sargent

Unemployment

A little bit of evidence on the natural rate hypothesis from the U.S

Salih Neftci, Thomas J. Sargent

Econometric models

The observational equivalence of natural and unnatural rate theories of macroeconomics

Naive business cycle theory

Macroeconomics

Econometric exogeneity and alternative estimators of portfolio balance schedules for hyperinflations: a note

Business cycles - Econometric models

The demand for money during hyperinflations under rational expectations: II

Inflation (Finance)

Seasonality and portfolio balance under rational expectations

Demand for money

Rusdu Saracoglu, Thomas J. Sargent

Portfolio management

Testing for neutrality and rationality

Observations on improper methods of simulating and teaching Friedman's time series consumption model

Econometric models

Is Keynesian economics a dead end?

Friedman, Milton

Business cycle modeling without pretending to have too much a priori economic theory

Keynesian economics

Thomas J. Sargent, Christopher A. Sims

Business cycles

Formulating and estimating dynamic linear rational expectations models

Linear rational expectations models for dynamically interrelated variables

This paper describes methods for conveniently formulating and estimating dynamic linear econometric models under the hypothesis of rational expectations. An econometrically convenient formula for the...

"Dollarization," seignorage, and the demand for money

The ends of four big inflations

Stopping moderate inflations: the methods of Poincaré and Thatcher

Identification and estimation of a model of hyperinflation with a continuum of "sunspot" equilibrium

Government debt and taxes

This paper constructs a model with two structural equations: the Government budget constraint and a linear version of Cagan’s portfolio balance equation. The model contains a continuum of...

Politics and Efficiency of Separating Capital and Ordinary Government Budgets

Thomas J. Sargent, Marco Bassetto

We analyze the democratic politics of a rule that separates capital and ordinary account budgets and allows the government to issue debt only to finance capital items. Many national governments...

Indivisible Labor and Its Supply Elasticity: Do Taxes Explain European Employment?

Acknowledging Misspecification in Macroeconomic Theory

We first scrutinize and challenge Prescott's (2002, 2004) quantitative analysis of the role of differences in taxes in explaining cross-country differences in labor market outcomes, and then defend...

We explore methods for confronting model misspecification in macroeconomics. We construct dynamic equilibria in which private agents and policy makers recognize that models are approximations. We...

Post World War II European welfare states experienced several decades of relatively low unemployment, followed by a plague of persistently high unemployment since the 1980s. We impute the higher...

Models of business cycles : A review essay

Post World War II European welfare states experienced several decades of relatively low unemployment, followed by a plague of persistently high unemployment since the 1980s. We impute the higher...

Manuelli, Rodolfo, Sargent, Thomas J.

Instrumental variables procedures for estimating linear rational expectations models

The European Employment Experience

European Unemployment and Turbulence Revisited in a Matching Model

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...

TWO COMPUTATIONS TO FUND SOCIAL SECURITY

We recalibrate den Haan, Haefke, and Ramey's matching model to incorporate our preferred specification of 'turbulence' as causing distinct dynamics of human capital after voluntary and involuntary...

HUANG, HE, IMROHOROG[caron]LU, SELAHATTIN, SARGENT, THOMAS J.

We use a general equilibrium model to study the impact offully funding social security on the distribution of consumptionacross cohorts and over time. In an initial stationary equilibriumwith an...

Politics and Efficiency of Separating Capital and Ordinary Government Budgets

Marco Bassetto, Thomas J Sargent

We analyze a "golden rule" that separates capital and ordinary account budgets and allows a government to finance only capital items with debt. Many national governments followed this rule in the...

Anticipated Inflation and Nominal Interest.

Commodity Price Expectations and the Interest Rate.

Coinage, debasements, and Gresham's laws

Bruce D. Smith, Thomas J. Sargent

This paper formulates a model of commodity money that circulates by tale, and applies it to a variety of situations, some of which seem to confirm, and others to contradict, `Gresham's Law'. We...

Welfare States and Unemployment.

Speed of Convergence of Recursive Least Squares Learning with ARMA Perceptions

This paper studies equilibrium unemployment in a search model where the government both provides liberal unemployment insurance and taxes labor at high progressive tax rates. It is shown how...

Albert Marcet, Thomas J. Sargent

This paper fills a gap in the existing literature on least squares learning in linear rational expectations models by studying a setup in which agents learn by fitting ARMA models to a subset of the...

Optimal Taxation without State-Contingent Debt

Albert Marcet, Thomas J. Sargent, Juha Seppala

To recover a version of Barro's (1979) `random walk' tax smoothing outcome, we modify Lucas and Stokey's (1983) economy to permit only risk--free debt. This imparts near unit root like behavior to...

Recursive robust estimation and control without commitment

The market price of risk and the equity premium: A legacy of the Great Depression?

In a Markov decision problem with hidden state variables, a posterior distribution serves as a state variable and Bayes' law under an approximating model gives its law of motion. A decision maker...

Cogley, Timothy, Sargent, Thomas J.

By positing learning and a pessimistic initial prior, we build a model that disconnects a representative consumer's subjective attitudes toward risk from the high price of risk that a...

Taxes, benefits, and careers: Complete versus incomplete markets

Robust Permanent Income and Pricing

An incomplete-market life-cycle model with indivisible labor makes career lengths and human capital accumulation respond to labor tax rates and government supplied non-employment benefits. We compare...

Lars Peter Hansen, Thomas J. Sargent, Thomas D. Tallarini Jr.

A,B,C's (and D's)'s for Understanding VARS

Jesús Fernández-Villaverde, Thomas J. Sargent, Mark Watson

A,B,C's (and D's)'s for Understanding VARS

Jesús Fernández-Villaverde, Thomas J. Sargent

Evolution and Intelligent Design

Thomas J Sargent

Straight Time and Overtime in Equilibrium

Gary D. Hansen, Thomas J. Sargent

Recursive Linear Models of Dynamic Economies

Inflation-Gap Persistence in the U.S.

This paper describes a class of dynamic stochastic linear quadratic equilibrium models. A model is specified by naming lists of matrices that determine preferences, technology, and the information...

Timothy Cogley, Giorgio E. Primiceri, Thomas J. Sargent

We use Bayesian methods to estimate two models of post WWII U.S. inflation rates with drifting stochastic volatility and drifting coefficients. One model is univariate, the other a multivariate...

Convergence of Least-Squares Learning in Environments with Hidden State Variables and Private Information.

Marcet, Albert, Sargent, Thomas J

The authors study the convergence of recursive least-squares learning schemes in economic environments in which there is private information. The presence of private information leads to the presence...

Two Models of Measurements and the Investment Accelerator.

The Real-Bills Doctrine versus the Quantity Theory: A Reconsideration.

This paper describes two models of an agency that is collecting and reporting observations on a dynamical linear stochastic economy. The first is a "classical" model, with the agency reporting data...

Interpreting Economic Time Series.

Causality, Exogeneity, and Natural Rate Models: Reply to C. R. Nelson and B. T. McCallum.

Estimation of Dynamic Labor Demand Schedules under Rational Expectations.

Rational Expectations, Econometric Exogeneity, and Consumption.

The Observational Equivalence of Natural and Unnatural Rate Theories of Macroeconomics.

A Classical Macroeconometric Model for the United States.

"Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule.

A supply-side explanation of European unemployment

Robustness and U.S. Monetary Policy Experimentation

This article offers a supply-side explanation of striking patterns in unemployment rates and duration of unemployment in European countries, compared with other member countries of the OECD...

TIMOTHY COGLEY, RICCARDO COLACITO, LARS PETER HANSEN, THOMAS J. SARGENT

We study how a concern for robustness modifies a policymaker's incentive to experiment. A policymaker has a prior over two submodels of inflation-unemployment dynamics. One submodel implies an...

TWO COMPUTATIONS TO FUND SOCIAL SECURITY

HUANG, HE, IMROHOROG[caron]LU, SELAHATTIN, SARGENT, THOMAS J.

We use a general equilibrium model to study the impact offully funding social security on the distribution of consumptionacross cohorts and over time. In an initial stationary equilibriumwith an...

ROBUST PERMANENT INCOME AND PRICING WITH FILTERING

Hansen, Lars Peter, Sargent, Thomas J., Wang, Neng E.

A planner and agent in a permanent-income economy cannot observe part of the state, regard their model as an approximation, and value decision rules that are robust across a set of models. They use...

The big problem of small change

Anticipated Utility and Rational Expectations as Approximations of Bayesian Decision Making

Western Europe was plagued with currency shortages from the 14th century, at which a 'standard formula' had been devised to cure the problem. We use a cash-in-advance model of commodity money to...

Cogley, Timothy W., Sargent, Thomas J.

For a Markov decision problem in which unknown transition probabilities serve as hidden state variables, we study the quality of two approximations to the decision rule of a Bayesian who each period...

The Market Price of Risk and the Equity Premium

Cogley, Timothy W., Sargent, Thomas J.

Friedman and Schwartz hypothesized that the Great Depression created exaggerated fears of economic instability. We quantify their idea by using a robustness calculation to shatter a representative...

Recursive Macroeconomic Theory, 2nd Edition

Benefits from U.S. monetary policy experimentation in the days of Samuelson and Solow and Lucas

Recursive methods offer a powerful approach for characterizing and solving complicated problems in dynamic macroeconomics. Recursive Macroeconomic Theory provides both an introduction to recursive...

Timothy Cogley, Riccardo Colacito, Thomas J. Sargent

Inflation (Finance) ; Econometric models

Interest Rates and Expected Inflation: A Selective Summary of Recent Research

The Ends of Four Big Inflations

Taxes and Subsidies in Swedish Unemployment

Evolving Post-World War II U.S. Inflation Dynamics

A Dynamic Index Model for Large Cross Sections

Danny Quah, Thomas J. Sargent

Do Taxes Explain European Employment? Indivisible Labor, Human Capital, Lotteries, and Savings