Rising costs of and returns to college have led to sizeable increases in the demand for
student loans in many countries. In the U.S., student loan default rates have also risen
for recent cohorts as labor market uncertainty and debt levels have increased.
This paper (i) estimates the local effects of government stimulus spending on labor market
outcomes and (ii) shows how these effects can be obtained from a firm's optimal policy in the
presence of costs to hiring workers.
How do job losers use default -- a phenomenon 6x more prevalent than bankruptcy
--as a type of “informal" unemployment insurance, and more importantly, what are
the social costs and benefits of this behavior?
The recent financial crisis has focused attention on the relationship between access to finance and international trade, triggering a burgeoning segment of the literature evaluating this link empirically.
Middle Eastern and North African (MENA) countries stand out in international comparisons of de jure obstacles to female employment and entrepreneurship. These obstacles manifest themselves in low rates of female labor participation, entrepreneurship, and ownership.
In this paper, we study the welfare consequences of imposing alternative regimes of
competition between two local governments that compete for mobile firms which have
private information on their degree of mobility.
The literature on the evolution of impatience, focusing on one-person decision problems,
finds that evolutionary forces favor the more patient individuals. This paper shows that in
the context of a game, this is not necessarily the case.
We examine self-referential games in which there is a chance of understanding
an opponent’s intentions. Our main focus is on the interaction of two sources of
information about opponents’ play: direct observation of the opponent’s code-of-conduct,
and indirect observation of the opponent’s play in a repeated setting.
This paper introduces a measure of credit score performance that abstracts from the influence of "situational factors." Using this measure, we study the role and effectiveness of credit scoring that underlied subprime securities during the mortgage boom of 2000-2006.