1996 Annual Meetings of the Society for Economic Dynamics and Control

ITAM, Mexico City

June 27 - July 29

Program Committee

Local Organization

Keynote Speakers
V.V. Chari, Univesity of Minnesota
James J. Heckman, University of Chicago
Michael Woodford, Princeton University

Conference Program

Thursday, June 27, 9:30-11:15
CIE, ITAM
Camino Santa Teresa 930

Session A: Dynamic Financial Models I

Chair: Kerry Back, Olin School of Business, Washington University

• Effects of Financial Innovation on Market Volatility when Beliefs are Heterogeneous,
  Fernando Zapatero, Centro de Investigación Económica, ITAM
• Optimal Consumption Choices for a Large Investor,
  Domenico Cuoco, The Wharton School, University of Pennsylvania
  Jaksa Cvitanic, Columbia University
• An Equilibrium Analysis of Solvency Constraints,
  Jerome Detemple, McGill University
  Angel Serrat, Sloan School of Management, MIT

Session B: Taxation and Endogenous Growth

Chair: Tor Einarsson, University of Iceland

• Fiscal Policy in an Endogenous Growth Model with Home Production
  Tor Einarsson, University of Iceland
  Milton Marquis, Florida State University
• Income Taxation and Finite Horizons in a Human Capital Model
  Cruz A. Echavarria and Amaia Iza, Universidad del Pais Vasco
• Fiscal Policy in an Endogenous Growth Model with Human Capital,
  Salvador Ortigueira, Centro de Investigación Económic, ITAM

Session C: Equilibrium Models with Banking

Chair: Michael B. Devereux, University of British Columbia

• Capital Accumulation and Real Exchange Rate Behavior in a Small Open Economy with Credit Market Frictions,
  Gaetano Antinolfi, Cornell University,
  Elisabeth Huybens, Centro de Investigación Económica, ITAM
• Monetary and Fiscal Policy in a General Equilibrium Banking Moel,
  Pamela Labadie, board of Governors of the Federal Reserve System
• Evolution, Coordination, and Banking Panics,
  Teodosios Temzelides, Federal Reserve Bank of Philadelphia

Session D: Income Distribution and Growth

Chair: Luis A. Rivera-Batiz, Universitat Pompeu Fabra and International Monetary Fund

• Regional Growth in Mexico: 1970-1988,
  V. Hugo Juan-Ramón, International Monetary Fun
  Luis A. Rivera-Batiz, Universitat Pompeu Fabra and International Monetary Fund
• Credit Market Imperfections, Income Distribution and Growth,
  Joydeep Bhattacharya, Cornell University
• Understanding why High Income Households Save More than Low Income Households,
  Mark Huggett and Gustavo Ventura, University of Illinois at Urbana-Champaign

Session E: Policy and Credibility

Chair: V.V. Chari, University of Minnesota

• Credible Public Policy with Infinitely Lived Agents,
  Roberto Chang, Federal Reserve Bank of Atlanta
• Spotting Sunspots: Some Evidence in Support of Models with Self-fulfilling Prophecies,
  Kevin D. Salyer and Steven M. Sheffrin, University of California, Davis
• High Real Interest Rates in the Aftermath of Disinflation: Is it Lack of Credibility?
  Graciela L. Kaminsky, Board of Governors of the Federal Reserve System,
  Leornardo Leiderman, Tel-Aviv University

Session F: Monetary Economics I

Chair: Finn E. Kydland, GSIA, Carnegie Mellon University

• Endogenous Money Supply and the Business Cycle,
  William T. Gavin, Federal Reserve Bank of St. Louis,
  Finn E. Kydland, GSIA, Carnegie Mellon University
• Growth, Seignorage, and Inflation in a Lucasian General Equilibrium Model,
  Hans-Martin Krolzig, Institute of Economics and Statistics, University of Oxford,
  Don I. Asoka Wöhrmann, Otto-von-Guericke University Magdeburg
• The Monetary Policy Effects on Seignorage Revenue in a Simple Growth Model,
  Joseph Haslag, Federal Reserve Bank of Dallas and Southern Methodist University

Coffee Break: 11:15-11:30 am

Thursday, June 27, 11:30-13:15
CIE, ITAM
Camino Santa Teresa 930

Session A: New Insights into the Dynamics of Real Exchange Rates

Chair: Ellen R. McGrattan, Federal Reserve Bank of Minnespolis

• Exchange Rate Dynamics in a Model of Pricing-To-Market,
  Caroline M. Betts, University of Southern California,
  Michael b. Devereux, University of British Columbia
• A Dynamic Model of Capital Flows and Real Exchange Rates in North America,
  Timothy J. Kehoe, University of Minnesota
• Exchange-Rate-Based Stabilization Syndrome: An Assessment of the Credibility Hypothesis Under Uncertainty,
  Enrique G. Mendoza and Martín Uribe, Board of Governors of the Federal Reserve System

Session B: Unemployment Insurance: Is it Worthwhile?

Chair: Dale T. Mortensen, Northwestern University

• Welfare Effects of Job Security Provisions Under Imperfect Insurance Markets,
  Fernando Alvarez, University of Chicago
  Marcelo Veracierto, Cornell University
• Unemployment Insurance in a General Equilibrium Model of Job Search and Precautionary Savings,
  James s. Costain, University of Chicago
• Unemployment Insurance, Labor Market Dynamics and Social Welfare,
  David Andolfatto, University of Waterlo,
  Paul Gomme, Simon Fraser University

Session C: Industry Dynamics

Chair: Leonard J. Mirman, University of Virginia

• Dynamic Flexibility, Optimal Organization Models and Price Instability,
  Alfredo Del Monte and Francesco Dell’Isolla, Universitá Degli Studi di Napoli Federico II
• How Industries Migrate When Agglomeration Economies are Important,
  Thomas J. Holmes, University of Minnesota
• Dynamic Externalities and Trade,
  Manjira Datta, Arizona State University
  Leonard J. Mirman, University of Virginia

Session D: Econometric Theory

Chair: Mark J. Dwyer, University of California, Los Angeles

• Empirical Likelihood Methods with Weakly Dependent Processes,
  Yuichi Kitamura, University of Minnesota
• Canonical Decomposition and Cointegration,
  Zaka Ratsimalahelo, Université de Franche-Comté
• Markov Trend Cointegration,
  Mark J. Dwyer and Simon M. Potter, University of California, Los Angeles

Session E: Economic Growth I

Chair: Salvador Ortigueira, Centro de Investigación Económica, ITAM

• A Note on Uncertain Lifetime and Growth,
  Luisa Fuster, Universitat Pompeu Fabra and University of Minnesota
• About Impatience in Economies that Grow,
  Jean-Pierre Drugeon, CNRS-MAD, Université de Paris I
• Growth Cycles,
  George W. Evans, University of Oregon,
  Seppo Honkapohja, University of Helsinki,
  Paul Romer, University of California, Berkeley

Session F: Issues on Real Business Cycles

Chair: Chris Phelan, Northwestern University

• Capital Utilization, Maintenance Costs and the Business Cycle Model,
  Omar Licandro and Luis A. Puch, FEDEA and Universidad Carlos III de Madrid
• Business Cycles and the Labour Market: Can the Theory Fit the Facts?
  Stephen Millard, Bank of England,
  Andrew Scott, Harvard University and University of Oxford,
  Marianne Sensier, University of Sheffield
• Signal Extracción and the Propagation of Business Cycles,
  Kenneth Kasa, Federal Reserve Bank of San Francisco

Lunch in the garden: 1:15 - 2:30 pm

Thursday, June 27, 14:30-16:15
CIE, ITAM
Camino Santa Teresa 930

Session A: Incomplete Markets I

Chair: Heracles Polemarchakis, CORE, Université Catholique de Louvain

• Financial Innovation and Volatility,
  Alessandro Citanna, McGill University and Carnegie Mellon University
• Enterpreneurship, Incentives and Ownership Structure,
  Michael Magill, University of Southern California,
  Martine Quinzii, University of California, Davis
• Extrinsic Uncertainty and the Informational Role of Prices,
  Tito Pietra, Rutgers University and Universitá di Modena,
  Paolo Siconolfi, Columbia University

Session B: Macroeconomics I

Chair: Kenneth Burdett, University of Essex

• An Alternative Approach to Market Frictions: An Application to the Market for Taxicab Rides,
  Ricardo Lagos, University of Pennsylvania
• State-Contingent Fiscal Policy and Sunspot Equilibria,
  Jang-Ting Guo, University of California, Riverside,
  Kevin J. Lansing, Fderal Reserve Bank of Cleveland
• Capital Taxation as a Recursive Game,
  Chris Phelan, Northwestern University,
  Ennio Stacchetti, University of Michigan

Session C: Economic Development

Chair: Mark Huggett, University of Illinois at Urbana-Champaign

• Financial Intermediation and Economic Development: A Quantitative Exploration,
  Andrés Erosa, University of Minnesota
• Public Risksharing and Economic Growth,
  Pierfederico Asdrubali, Brown University
• Fertility, Time Use, and Economic Development,
  Karine S. Moe, Macalester College

Session D: Learning Dynamics

Chair: Seppo Honkapohja, University of Helsinki

• Monopolistic Competition, Subjective Demand, and Least Squares Learning in a Simple Macroeconomic Model,
  Alfred Maub ner, University of Cologne
• Chaotic Learning Equilibria,
  Martin Schönhofer, University of Bielefeld
• Convergence in Monetary Inflation Models with Heterogeneous Learning Rules,
  George W. Evangs, University of Oregon,
  Seppo Honkapohja, University of Helsinki,
  Ramón Marimon, European University Institute and Universitat Pompeu Fabra

Session E: Growth and Trade

Chair: Luis Rivera-Batiz, International Monetary Fund and Universitat Pompeu Fabra

• The Growth In World Trade: Further Evidence and Explanations,
  Jun Ishii, Stanford University, and Kei-Mu Yi, Rice University
• Savings, Volume of Trade, and Growth,
  Thomas Osang, Southern Methodist University,
  Alfredo Pereira, College of William and Mary

Thursday, June 27, 16:45-18:00
Auditorio Raúl Bailléres, ITAM
Rio Hondo 1, San Angel

Keynote Address

Chair: Manuel S. Santos, Centro de Investigación Económica, ITAM

• Dynamic Models of Human Capital Accumulation: Theory, Evidence and Application to The Evaluation of Tax and Training Policies,
  James J. Heckman, University of Chicago

Friday, June 28, 9:30-11:15
CIE, ITAM
Camino Santa Teresa 930

Session A: Dynamic Financial Models II

Chair: Fernando Zapatero, Centro de Investigación Económica, ITAM

• Imperfect Competition Among Informed Traders,
  Kerry Back, Olin School of Business, Washington University,
  Henry Cao, University of California, Berkeley,
  Gregory Willard, Olin School of Business, Washington University
• A Nonparametric Model of Term Structure Dynamics and the Market Price of Interest Rate Risk,
  Richard Stanton, Haas School of Business, University of California, Berkeley
• Good-Deal Pricing of Derivatives in Incomplete Markets,
  John Cochrane and Jesús Saa-Requejo, Graduate School of Business, University of Chicago
• Valuing the Futures Market Performance Guarantee," by David S. Bates, The Wharton School, University of Pennsylvania, and Roger Craine, University of California, Berkeley

Session B: Multisector Models

Chair: Jean Mercenier, CRDE, Université de Montreal

• The Role of Intratemporal Adjustment Costs in a Multisector Economy,
  Gregory W. Huffman, Southern Methodist University,
  Mark A. Wynne, Federal Reserve Bank of Dallas
• Strong Concavity Properties of Indirect Utility Functions in Multisector Optimal Growth,
  Alain Venditti, GREQAM, Université d’ Aix-Marseille
• Temporal Aggregation in a Multisector Economy with Endogenous Growth,
  Jean Mercernier, CRDE, Université de Montréal,
  Philippe Miche, GREQAM, Université de la Méditerranée

Session C: Monetary Economics II

Chair: Paul Gomme, Simon Fraser University

• The Option Value of Liquidity,
  Stacie E. Beck, University of Delaware
• Liquidity, Beliefs and Monetary Policy Regimes,
  David Andolfatto, University of Waterloo,
  Paul Gomme, Simon Fraser University,
  Wai-Ming Ho, University of Waterloo
• Nominal and Real Excange Rates in a Two-Country Search Model of Fiat Money,
  Allen Head and Shouyong Shi, Queen’s University

Session D: Incomplete Markets II

Chair: Martine Quinzii, University of California, Davis

• Persistent Idiosyncratic Income Shocks and Incomplete Markets,
  Kjetil Storesletten, IIES, Stockholm University,
  Chris Telmer and Amir Yaron, GSIA, Carnegie Mellon Univesity
• Endogenous Borrowing Constraints with Incomplete Markets,
  Harold Zhang, GSIA, Carnegie Mellon University
• When do Liquidity Constraints’ Bind?
  Guillaume Rabault, INSEE

Session E: Political Economy I

Chair: Michele Boldrin, Universidad Carlos III de Madrid

• The Political Economy of Public Education,
  Jorge Soares, University of Rochester
• Redistribution Through Education,
  Ban Chuan Cheah,
  Erick Harmshek,
  Charles Ka Ui Leung, University of Rochester
• Intergenerational Politics and the Accumulation of Public Capital,
  Kenneth R. Beauchemin, University of Colorado at Boulder

Session F: International Risksharing

Chair: Harold L. Cole, Federal Reserve Bank of Minneapolis

• Nominal Revaluation of Cross-Border Assets and International Risksharing,
  Soyoung Kim, Yale University
• Creating Markets for International Consumption Risksharing,
  Stefano G. Athanasoulis, Iowa State University
• How Big are Potential Welfare Gains from International Risksharing?
  Eric van Wincoop, Boston University

Coffee Break : 12:15 - 1:30 pm

Friday, June 28, 11:30-13:15
CIE-ITAM
Camino Santa Teresa 930

Session A: Modeling Current Account Crises

Chair: Timothy J. Kehoe, University of Minnesota

• Currency Crises and Bank Panics,
  Caroline M. Betts, University ofor Southern California
• Hot Money,
  V.V. Chari, University of Minnesota,
  Patrick J. Kehoe, University of Pennsylvania
• A Self-Fulfilling Model of Mexico’s 1994-95 Debt Crisis,
  Harold L. Cole, Federal Reserve Bank of Minneapolis,
  Timothy J. Kehoe, University of Minnesota

Session B: Multisector Models of the Business Cycle

Chair: Michele Boldrin, Universidad Carlos III de Madrid

• Cyclicality and Sectoral Linkages: Aggregate Fluctuation from Independent Sectoral Shocks,
  Michael Horvath, Stanford University
• Aggregate Fluctuations from Local Market Interactions,
  Randall Verbrugge, Virginia Polytechnic Institute
• Optimal Sectoral Shifts,
  Chris Phelan and Alberto Trejos, Northwestern University

Session C: Financial Economics

Chair: Paul D. McNelis, Georgetown University

• Precautionary Portfolio Behavior from a Life-Cycle Perspective,
  Carol C. Bertaut, Board of Governors of the Federal Reserve System,
  Michael Haliassos, University of Cyprus
• Optimal Crop Portfolio Rule in a Stochastic Dynamic Framework,
  Héctor R. Malarín, Inter-American Development Bank
• Stock Price Fluctuations in Australia: The Influence of Japanese and U.S. Markets,
  Guay C. Lim; University of Melbourne,
  Paul D. McNelis, Georgetown University

Session D: Dynamics Models

Chair: George W. Evans, University of Oregon

• An Economy with Heterogeneous Agents,
  Peter Soerensen, University of Chicago
• Accurate Prediction in a Chaotic Framework,
  Kaushik Mitra, Cornell University
• Aggregate Dynamics of Lumpy Agents,
  Donald S. Allen, Federal Reserve Bank of St. Louis

Session E: Labor Economics

Chair: Lars Ljungqvist, Federal Reserve Bank of Chicago

• Increasing Employment by ‘Spreading the Work’: A General Equilibrium Analysis,
  Terry J. Fitzgerald, Federal Reserve Bank of Cleveland
• Agglomerations, Externalities, Geography and the Labor Market: Theory and Evidence,
  Francisco L. Rivera-Batiz, Columbia University,
  Luis A. Rivera-Batiz, International Monetary Fund and Universitat Pompeu Fabra
• Strategic Bargaining with Firm Inventories,
  Melvin Coles, University of Essex,
  Eric Smith, University of Essex and University of British Columbia

Session F: Models of Learning by Doing

Chair: Yaw Nyarko, New York University

• A Solution Method for a Class of Learning by Doing Models,
  Francisco Alvarez González,
  Emilio Cerda Tena, Universidad Complutense, Madrid
• Learning by Doing in an Export-Sector-Led Endogenous Growth Model,
  Enrique R. Casares Gil, Universidad Autónoma Metropolitana-Azcapotzalco
• Implications of a Learning-by-Doing Model for Persistent Liquidity Effects,
  Elvan Ozlu, Syracuse University

Lunch in the garden: 1:15-2:30 pm

Friday, June 28, 14:30-16:15
CIE, ITAM
Camino Santa Teresa 930

Session A: Incomplete Markets III

Chair: Rose-Anne Danna, Université Paris Dauphine

• Arbitrage and Duality,
  Rose-Anne Dana, Université Paris Dauphine
• Sunspot Equilibria and Non-Additive Expected Utility Maximizers,
  Jean-Marc Tallon, Université Paris I
• Individually Finite Economies with Uncertainty,
  Piero Gottardi and Heracles Polemarchakis, CORE, Université Catholique de Louvain,
  Paolo Siconolfi, Columbia University

Session B: Search, Matching and Intermediation

Chair: Randall Wright, University of Pennsylvania

• The Transition from Barter to Money,
  Kennth Burdett, University of Essex, Alberto Trejos, Northwestern University,
  Randall Wright, University of Pennsylvania
• Middlemen and Private Information,
  Yitting Li, Tsing Hua University, Taiwan
• Money and Prices in a Model of Search with Monopolistic Competition,
  Derek Laing, Victor Li and Ping Wang, Pennsylvania State University

Session C: Applied Macroeconomics

Chair: John Keating, Washington University

• The Permanent Effects of Innovation on Financial Depth: Theory and Historical Evidence From Unobserved Component Models,
  Peter Rousseau, Vanderbilt University
• Cointegration and Changes in Regime: The Japanese Consumption Function,
  Stephen Hall, Imperial College of Science, Technology and Medicine,
  Zacharias Psaradakis, Birbeck College,
  Martín Sola, Birbeck College
• Are Sticky Prices an Important Source of Economic Fluctuations?
  John Keating, Washington University

Session D: Taxation and Growth

Chair: Peter Klenow, University of Chicago

• Taxation of Labor and Capital Income in an OLG Mode with Home Production and Endogenous Fertility,
  Burkhard Heer and Mark Trede, University of Cologne
• Capital Gains Tax as an Inflation Tax in a Life-Cycle Model,
  Charles K.Y. Leung, University of Rochester,
  Guang-Jia Zhang, University of Guelph
• The Influence of the Dividend Tax Price on Subsidiaries’ Remittance,
  Jane Ihrig, University of Virginia

Session E: Estimating Dynamic Models

Chair: James J. Heckman, University of Chicago

• Potential Output as a Stochastic Variable,
  Robert M. Coen, Northwestern University
• Estimating Dynamic Rational Expectations Models When the Trend Specification is Uncertain,
  Timothy Cooley,Federal Reserve Bank of San Francisco
• Dissagregated Production Based Asset Pricing,
  Stefan C. Norrbin, Florida State University,
  Kevin L. Reffett and Donald E. Schlagenhauf, Arizona State University

Session F: Knowledge and Endogenous Growth

Chair: Scott Freeman, University of Texas at Austin

• Knowledge Dissemination, Capital Accumulation, Trade and Endogenous Growth,
  Dan Ben-David, Tel-Aviv University and CEPR,
  Michael Loewy, University of Houston
• Endogenous Timing of Innovations and Economic Fluctuations,
  Scott Freeman and Dong-Pyo Hong, University of Texas at Austin,
  Dan Peled, Technion
• Technology Adoptionb, Threshold Learning, and Endogenous Equilibrium Growth,
  Baoline Chen, Rutgers University-Camden

Friday, June 28, 16:45-18:00
Auditorio Raúl Bailleres, ITAM
Rio Hondo 1, San Angel

Keynote Address

Chair: Dale T. Mortensen, Northwestern University

• The Poverty for Nations: Back to Basics,
  V.V. Chari, University of Minnesota

Saturday, June 29, 9:30-11:15
CIE, ITAM
Camino Santa Teresa 930

Session A: Monetary Economics III

Chair: Kenneth Burdett, University of Essex

• A Value Theory for Money,
  Manuel Santos, Centro de Investigación Económica, ITAM,
  Michael Woodford, Princeton University
• Contracts and Money,
  Francois R. Velde, John Hopkins University,
  Warren Weber, Federal Reserve Bank of Minneapolis,
  Randall Wright, University of Pennsylvania

Session B: Rational Learning

Chair: Matthew Jackson, Northwestern University

• Social Learning in Recurring Games,
  Matthew Jackson,
  Ehud Kalai, Kellogg School of Management, Northwestern University
• Social Learning and Costly Information Acquisition,
  Roberto Burguet,
  Xavier Vives, Institut d’ Analisi Economica, Universitat Autónoma de Barcelona
• On the Convergence to Rational Expectations: The Complete Markets case,
  Aloisio Araujo, IMPA, Brazil
  Alvaro Sandroni, University of Pennsylvania

Session C: Political Economy II

Chair: Ayse Imrohoroglu, University of Southern California

• On the Political Economy of Income Redistribution and Crime,
  Ayse Imrohoroglu, University of Southern California,
  Antonio Merlo, University of Minnesota,
  Peter Rupert, Federal Reserve Bank of Cleveland
• Community Formation and Youth Crime: An Equilibrium Analysis,
  Peter M. Bearse, University of Tennessee
• Violence and the Optimality for Unemployment Insurance,
  Stephane Pallage,
  Christian Zimmermann, Université du Québec a Montreal

Session D: Innovation, Competition and Growth

Chair: Georges Zaccout, GERAD, HEC, McGill University

• Imperfect Competition, Quality Upgrade and Economic Growth,
  Ting-Fang Chiang, Yuan-Ze Institute of Technology,
  Hsiao-Yun Teng, National Central University, Taiwan
• Indeterminacy and Endogenous Fluctuations in Two-Sector Growth Models with Externalities,
  Pierre Cartigny and Alain Venditti, GREQAM, Université d’ Aix-Marseille
• Price Subsidies and Guaranteed Buys of a New Technology,
  Georges Zaccour, GERAD, HEC, McGill University,
  Steffen Jorgensen, Odense University

Session E: Exchange Rate Fluctuations

Chair: Alejandro Hernández, Centro de Investigación Económica, ITAM

• Speculative Attacks and Exhcnage Rate Devaluations in Mexico: Why is the 1994 Episode Different?
  Angel Calderón-Madrid, El Colegio de México
• Quasi Fundamental Exchange Rate Variations,
  Steven Russell, IUPUI
• Are Exchange Rate Expectations Biased? Evidence from Survey Data,
  Lorenzo Giorgianni, International Monetary Fund and University of Pennsylvania

Coffee Break : 11:15-11:30 am

Saturday, June 29, 11:30-13:15
CIE, ITAM
Camino Santa Teresa 930

Session A: Growth and Development

Chair: Ellen R. McGrattan, Federal Reserve Bank of Minneapolis

• Monopoly Power and the Income of Nations
  Stephen L. Parente, University of Pennsylvania,
  Edward C. Prescott, University of Minnesota
• Does Schooling Cause Growth or the Other Way Around?
  Mark Bils, University of Rochesyter,
  Peter Klenow, University of Minnesota
• Income Disparity Across Countries: The Role of Investment Distortions,
  Diego Restuccia and Carlos Urrutia, University of Chicago

Session B: Issues in Open Economy Macroeconomics

Chair: Gary D. Hansen, University of California, Los Angeles

• A Quantitative Examination of International Tax Competition,
  Enrique G. Mendoza, Division of International Finance, Board of Governors of the Federal Reserve System,
  Linda Tesar, University of California, Santa Barbara
• The Equilibrium Approach to Nominal and Real Exchange Rate Comovements,
  Mary Finn, Federal Reserve Bank of Richmond
• Disinflation Programs Under Policy Uncertainty: Insights for Exchange-Rate-Based Stabilization Programs,
  Amartya Lahiri, University of California, Los Angeles

Session C: Job Creation, Job Destruction and Unemployment

Chair: Boyan Jovanovic, University of Pennsylvania

• Unemployment in Europe and Regional Labor Fluctuations,
  Ana Lamo, Université de lausanne and London School of Economics
• The European Unemployment Dilemma,
  Lars Ljungqvist, Federal Reserve Bank of Chicago,
  Thomas J. Sargent, Hoover Institution and University of Chicago
• Stepping Stone Mobility,
  Yaw Nyarko, New York University,
  Boyan Jovanovic, University of Pennysylvania

Session D: Central Banking

Chair: Heracles Polemarchakis, CORE, Université Catholique de Louvain

• A Public Finance Analysis of Multiple Reserve Requirements,
  Marco Espinosa, Federal Reserve Bank of Cleveland,
  Steve Russell, IUPUI
• Can Ignorance Make Central Baniks Behave?: Instrument Uncertainty and the Inflationary Bias Problem,
  Chris Canavan, Boston College
• Profitable Buybacks in Sovereign Debt,
  Jeannine Farazli Rodríguez, University of Calgary

Session E: Mathematical Economics

Chair. Michael Magill, University of Southern California

• General Equilibrium with Transaction Technologies,
  Satyajit Chatterjee, Federal Reserve Bank of Philadelphia,
  Dean Corbae, University of Iowa
• A Note on the ‘Size’ of Determinacy and Indeterminacy,
  Julio Dávila, Universitat Autónoma de Barcelona
• Renegociation-Proof Dynamic Contracts with Private Information,
  Cheng Wang, GSIA, Carnegie Mellon University

Session F: Empirical Issues on Business Cycles

Chair: Lawrence J. Christiano, Northwestern University

• An Econometric Characterization of Business Cycle Dynamics with Factor Structure and Regime Switching,
  Marcelle Chauvet, University of California, Riverside
• The Determinants of U.K. Business Cycles,
  Allison Holland, Bank of England,
  Andrew Scott, Harvard University and University of Oxford
• Intermediate Goods and the International Business Cycle,
  Steve Ambler, Emanuela Cardia,
  Christian Zimmermann, Université du Québec á Montreal
• A Stochastic Dynamic General Equilibrium Model of Greece,
  Tryuphon Kollintzas and Vanghelis Vassilatos, Athens Institute of Economic Policy Studies

Lunch in the garden: 1:15-2:30 pm

Saturday, June 29, 14:30-16:15
CIE-ITAM
Camino Santa Teresa 930

Session A: Macroeconomics II

Chair: Lawrence J. Christiano, Northwestern University

• Sticky Price Models of the Business Cycle: The Persistence Problem,
  V.V. Chari, Federal Reserve Bank of Minneapolis,
  Patrick J. Kehoe, University of Pennsylvania,
  Ellen R. McGrattan, Federal Reserve Bank of Minneapolis
• Expectations Traps and Discretion,
  V.V. Chari, Federal Reserve Bank of Minneapolis,
  Lawrence J. Christiano,
  Martin Eichenbaum, Northwestern University
• A Negative Money-Interest Correlation and Open