1999 Annual Meetings of the Society for Economic Dynamics and Control

Porto Conte Research Center
Alghero, Sardinia, ITALY

June 27 - July 30

Conference Program

Plenary Sessions:

Sunday, June 27, 5:30 ­ 6:30 p.m.
Guido Tabellini, Università Bocconi and IGIER, Fiscal Policy in Representative Democracies.

Monday, June 28, 5:30 ­ 6:30 p.m.
Andrew Postlewaite, University of Pennsylvania, Social Arrangements and Economic Behavior.

Tuesday, June 29, 5:30 ­ 6:30 p.m.
Robert E. Lucas, Jr., University of Chicago, Externalities and Cities.

Regular Sessions:

There will be three time slots for each day on Sunday, Monday and Tuesday:

1 = 9:30 ­ 11:30 a.m.
2 = 1:00 ­ 3:00 p.m.
3 = 3:15 ­ 5:15 p.m.

There will be two time slots on Wednesday:

1 = 9:00 ­ 11:00 a.m.
2 = 11:15 a.m. ­ 12:45 p.m.

Presenter is highlighted in bold.


Sunday 1

Session A: Localized Spillovers and Agglomeration

Room: Anghelu Ruju
Chair: Francesco Pigliaru

  • Agglomeration and Trade Revisited,
    Gianmarco Ottaviano, Università di Bologna, Jacques-François Thisse, Université Catholique de Louvain
  • Geography of Innovation and Production in Europe and their Effects on Specialization and Trade,
    Laura Bottazzi, Università Bocconi and IGIER, Giovanni Peri, Università Bocconi and IGIER.
  • Death and Birth of a City: The Myth of the (Arabian) Phoenix,
    Andrea Lamorgese, Université Libre de Bruxelles.
  • Information Spillovers and Factors Adjustment,
    Luigi Guiso, Università di Sassari and Ente "Luigi Einaudi",
    Fabiano Schivardi, Banca d'Italia.

Session B: Dynamic Contracts and Bargaining

Room: Foradada
Chair: Leonardo Felli

  • Learning, Commitment and Downward-Flexible Wage Dynamics,
    Thomas de Garidel-Thoron, University College of London.
  • Gradual Concessions, Delays, and the Role of Outside Options in Bargaining,
    Olivier Compte, Ecole Nationale des Ponts et Chaussées, Philippe Jehiel, Ecole Nationale des Ponts et Chaussées and University College London.
  • Costly Bargaining and Renegotiation,
    Luca Anderlini, St. John's College, Cambridge, Leonardo Felli, London School of Economics.
  • Providing Managerial Incentives: Do Benchmarks Matter?
     Juan Pedro Gomez, ITAM and Universidad Carlos III de Madrid, Tridib Sharma, ITAM.

Session C: Crimes and Misdemeanors

Room: Cabirol
Chair: Peter Rupert

  • What Accounts for the Decline in Crime in the 1990's?
    Ayse Imrohoroglu, University of Southern California, Antonio Merlo, New York University, Peter Rupert, Federal Reserve Bank of Cleveland.
  • Crime and Unemployment,
    Kenneth Burdett, Essex University, Ricardo Lagos, London School of Economics, Randall Wright, University of Pennsylvania.
  • Dynastic Criminal Organizations,
    Daria Zakharova, University of Minnesota and Federal Reserve Bank of Minneapolis.
  • Smuggling, Black Markets in Currencies, and the Inflation Tax: A Welfare Analysis,
    Alex Mourmouras, International Monetary Fund.

Session D: Investment Dynamics

Room: Baratz
Chair: Michael Horvath

  • Do Adjustment Costs Explain Investment-Cash Flow Insensitivity?,
    Sangeeta Pratap, ITAM.
  • Firm Specific Learning and the Investment Behavior of Large and Small Firms,
    Wenli Li, Federal Reserve Bank of Richmond, John Weinberg, Federal Reserve Bank of Richmond.
  • Business Cycles and the Failure of Marginal Firms,
    Michael Horvath, Stanford University.
  • Strategic Technology Investment under Uncertainty,
    Kuno Huisman,Tilburg University, Peter Kort, Tilburg University.

Session E: International Business Cycles

Room: Nettuno
Chair: Christian Zimmermann

  • Static Labor Supply in a Two-Good Two-Country Model: Explaining International Comovements,
    J.O. Hairault, Université de Paris I.
  • International Business Cycles; Facts and Fiction,
    Steve Ambler, Université du Québec à Montréal, Emanuela Cardia, Université de Montréal, Christian Zimmermann, Université du Québec à Montréal.
  • Optimal and Simple Monetary Rules and Exchange Regimes in an Open-Economy Business Cycle Model,
    Luca Dedola, Banca d'Italia, Sylvain Leduc, Federal Reserve Bank of Philadelphia.
  • Effects of Government Spending in Open Economies: Empirical Evidence and Predictions of a Dynamic General Equilibrium Model With Nominal Rigidities,
    Robert Kollmann, Université de Paris XII.

Session F: Monetary Policy I

Room: Calik
Chair: Vincenzo Quadrini

  • Why do Prices Respond so Sluggishly to Monetary Policy Shocks?
    David Andolfatto, Bank of Canada, Guang-Jia Zhang, Bank of Canada
  • Is Monetary Policy Based on the Phillips Curve Relation Optimal?
    Thomas F. Cooley, University of Rochester, Vincenzo Quadrini, Duke University.
  • Unemployment Dynamics and Monetary Policy,
    Gil Mehrez, Georgetown University, Natacha Valla, European University Institute.

Session G: Optimal Taxation

Room: Dragunara
Chair: Paul Klein

  • Time-Consistent Optimal Taxation,
    Paul Klein, Stockholm University, José-Víctor Ríos-Rull, University of Pennsylvania.
  • On Optimal Taxation in Overlapping Generations Economies,
    Thomas I. Renström, Tilburg University.
  • Optimal Taxation: An Overlapping Generations Approach,
    Carlos Garriga, Universitat de Barcelona.
  • The Optimal Mix of Taxes on Money, Consumption and Income,
    Fiorella De Fiore, European Central Bank, Pedro Teles, Banco de Portugal and Universidade Católica Portuguesa.

Sunday 2

Session A: Equilibrium Models of Political Processes

Room: Nettuno
Chair: Thomas Palfrey

  • An Experimental Study of Jury Decisions,
    Richard D. McKelvey, California Institute of Technology, Thomas R. Palfrey, California Institute of Technology.
  • Ambiguity in Equilibrium for Two Party Electoral Competition,
    Enriqueta Aragones, Universitat Pompeu Fabra, Andrew Postlewaite, University of Pennsylvania.
  • Government Turnover in Parliamentary Democracies,
    Daniel Diermeier, Northwestern University, Antonio Merlo, New York University.

Session B: Industry Dynamics & the Organization of Production

Room: Calik
Chair: Matthew Mitchell

  • Does Technological Change Spur Venture Capital?
    Masako Ueda, Universitat Pompeu Fabra.
  • Regional Employment Dynamics,
    Keith Sill, Federal Reserve Bank of Philadelphia.
  • Industry Dynamics: Aggregate Uncertainty, Heterogeneity, and the Entry and Exit of Firms,
    Mallika Ishwaran, Carnegie Mellon University.

Session C: Finance and Growth

Room: Anghelu Ruju
Chair: Marco Vannini

  • Interactions Between Economic and Financial Development,
    Luca Deidda, University of London, Università di Sassari, and CRENoS.
  • Financial Structure, Inequalities and Growth,
    Thierry Tressel, DELTA and Université de Cergy-Pontoise.
  • Financial Development and Economic Growth,
    Aubhik Khan, University of Virginia and Federal Reserve Bank of Philadelphia.
  • Banking Market Structure, Financial Dependence and Growth: International Evidence from Industry Data,
    Nicola Cetorelli, Federal Reserve Bank of Chicago, Michele Gambera, Federal Reserve Bank of Chicago.

Session D: Dynamic Fiscal Policy

Room: Foradada
Chair: Gerhard Glomm

  • Capital versus Labor Taxation with Heterogeneous Agents,
    Jonathan Heathcote, Stockholm School of Economics, David Domeij, Stockholm School of Economics.
  • Long-run Growth with Distortionary Government Expenditures and Transfers,
    Scott Baier, University of Notre Dame, Gerhard Glomm, Michigan State University.
  • Tax Policy, Growth Convergence and Level Convergence,
    Steven P. Cassou, Kansas State University, M. Junaid Khawaja, Kansas State University.

Session E: Monetary Policy II

Room: Dragunara
Chair: Andres Erosa

  • Inflation, Heterogeneity and Costly Credit: How Regressive is the Inflation Tax?
    Andres Erosa, University of Western Ontario, Gustavo Ventura, University of Western Ontario.
  • Optimal Inflation Tax with Imperfect Competition in the Banking Sector,
    Bernardino Adao, Banco de Portugal.
  • Poole Revisited,
    Fabrice Collard, CEPREMAP, Harris Dellas, University of Bern, Guy Ertz, Université Catholique de Louvain.

Session F: International Finance

Room: Baratz
Chair: Gaetano Antinolfi

  • International Financial Crises and the Term Structure of Debt Contracts,
    Marco Espinosa-Vega, Federal Reserve Bank of Atlanta,
    Steve Russell, IUPUI.
  • On Domestic Financial Market Frictions, Unrestricted International Capital Flows, and Crises in Small Open Economies,
    Gaetano Antinolfi, Washington University, Elisabeth Huybens, ITAM.
  • Parameterizing Currency Risk in the EMS: The Irish Pound and Spanish Peseta against the German Mark,
    G.C. Lim, University of Melbourne, Paul D. McNelis, Georgetown University.

Session G: Economics of the Household

Room: Cabirol
Chair: Peter Rupert

  • Household Production with Time to Build,
    Paul Gomme, Federal Reserve Bank of Cleveland, Finn Kydland, Carnegie Mellon University, Peter Rupert, Federal Reserve Bank of Cleveland.
  • Social Norms and Intergenerational Transfers: Evidence from a Pre-Modern Economy,
    Maristella Botticini, Boston University.
  • An Economic Analysis of Family Structure: Inheritance Rules and Marriage Systems,
    Nezih Guner, University of Rochester.
  • Endogenous Labor Market Rigidities and Family Ties,
    Alessandra Fogli, University of Pennsylvania.

Sunday 3

Session A: Time Series

Room: Foradada
Chair: Oliver Linton

  • Contemporaneous Aggregation of Linear Dynamic Models in Large Economies,
    Marco Lippi, Università di Roma "La Sapienza," Paolo Zaffaroni, Banca d'Italia.
  • Business Cycle Asymmetries: Characterisation and Testing Based on Markov-Switching Autoregressions,
    Michael P. Clements, University of Warwick, Hans-Martin Krolzig, Nuffield College, Oxford.
  • Sectoral Business Cycle Dynamics Using Spatial Methods,
    Timothy G. Conley, Northwestern University, Bill Dupor, University of Pennsylvania.
  • The Asymptotic Distribution of Nonparametric Estimates of the Lyapunov Exponent for Stochastic Time Series,
    Yoon-Jae Whang , Ewha University, Oliver Linton, Yale University.

Session B: Dynamic Games and Dynamic Contracts

Room: Anghelu Ruju
Chair: Alessandro Lizzeri

  • Interim Evaluations in Dynamic Tournaments: the Effects of Midterm Exams,
    Alessandro Lizzeri, Princeton University, Margaret Meyer, Nuffield College, Oxford, Nicola Persico, University of Pennsylvania.
  • Dynamic Costly State Verification,
    Cheng Wang, Carnegie Mellon University.
  • Dynamic Games with Hidden Actions and Hidden States,
    Harold Cole, Federal Reserve Bank of Minneapolis, Narayana Kocherlakota, University of Minnesota.
  • Optimal Dynamic Contracts: Theory and Evidence from the Life Insurance Industry,
    Igal Hendel, Princeton University, Alessandro Lizzeri, Princeton University.

Session C: Firm Dynamics

Room: Calik
Chair: Gautam Gowrisankaran

  • On the Nature of Capital Adjustment Costs,
    Russell Cooper, Boston University, John Haltiwanger, University of Maryland.
  • Firm Investment under Imperfect Capital Markets: A Structural Estimation,
    Sangeeta Pratap, ITAM, Silvio Rendon, Universitat Pompeu Fabra.
  • Financial Constraints and Firm Dynamics,
    Andrea Caggese, London School of Economics.
  • Demand-Side Increasing Returns: Implications for Firm Investment Policy,
    Andrew Young, Emory University.

Session D: Financial Intermediation

Room: Dragunara
Chair: Pietro Reichlin

  • Adverse Selection of Investment Projects and the Business Cycle,
    Pietro Reichlin, Università di Roma "La Sapienza," Paolo Siconolfi, Columbia University.
  • Financial Intermediaries as Matchmakers: The Role of Market Informational Frictions,
    Zsolt Becsi, Federal Reserve Bank of Atlanta, Victor Li, Princeton University, Ping Wang, Vanderbilt University.
  • Dynamic Credit Relationships in General Equilibrium,
    Anthony A. Smith, Jr., Carnegie Mellon University, Cheng Wang, Carnegie Mellon University.
  • Credit Crunch, Bank Lending Behaviour and Monetary Policy: A Model of Financial Intermediation with Heterogeneous Projects,
    Mingwei Yuan, Bank of Canada, Christian Zimmermann, Université du Québec à Montréal.

Session E: Trade and Growth

Room: Cabirol
Chair: Jonathan Eaton

  • Diffusion of Countries' Growth through Specialization and Trade of Intermediate Inputs,
    Antonio Manresa, Universitat de Barcelona, Monica Pigem, Universitat de Barcelona.
  • Is Openness Relevant for Growth?
    Jonathan Eaton, Boston University, Samuel Kortum, Boston University.
  • Dynamic Interaction: A North-South Story of Technological Diffusion,
    Michelle P. Connolly, Duke University.
  • Vertical Specialization and the Growth of World Trade,
    Kei-Mu Yi, Federal Reserve Bank of New York.

Session F: Indeterminacy

Room: Baratz
Chair: Guido Cozzi

  • Ruling Out Indeterminacy and Multiplicity: The Role of Heterogeneity,
    Berthold Herrendorf, University of Warwick, Ákos Valentinyi, University of Southampton, Robert Waldmann, Università di Chieti.
  • Technological Volatility as a Route to Indeterminacy,
    Guido Cozzi, Cornell University and Università di Roma "La Sapienza."
  • Indeterminacy and Stabilization Policy in a Two Sector Model with Externalities,
    Jang-Ting Guo, University of California, Riverside, Sharon Harrison, Barnard College.
  • Infinite Lived Agent Economy with Myopia and Overlapping Generation,
    Stefano M. Lovo, Université Catholique de Louvain.

Session G: Monetary Union

Room: Nettuno
Chair: Hubert Kempf

  • Designing a Monetary Union: Monetary Rules and Fiscal Constraints,
    Russell Cooper, Boston University, Hubert Kempf, Université de Paris I.
  • Labor Markets and Monetary Union: a Preliminary Strategic Analysis,
    Alex Cukierman, Tel Aviv University, Francesco Lippi, Banca di Italia.
  • Public Debt, Default Risk and European Monetary Union,
    Silvia Valli, Ente per gli Studi Monetari Bancari e Finanziari "Luigi Einaudi" and University of Warwick.
  • Welfare Reform, Unemployment, and Growth in Europe,
    Francesco Daveri, Università di Parma and IGIER, Marco Maffezzoli, Università Bocconi.

Monday 1

Session A: Theory of the Firm

Room: Foradada
Chair: Luigi Zingales

  • A Theory of Supervision with Endogenous Transaction Costs,
    A. Faure-Grimaud, London School of Economics, J.J. Laffont and D. Martimort, Université de Toulouse.
  • The Firm as a Dedicated Hierarchy: A Theory of the Origins and Growth of Firms,
    R. Rajan and Luigi Zingales, University of Chicago.
  • Endogenous Spillovers, Increased Competition and Reorganization Waves,
    Diego Rodriguez-Palenzuela, Universitat Pompeu Fabra.
  • Competition and Reputation,
    Ramon Marimon, European University Institute and Universitat Pompeu Fabra, Juan Pablo Nicolini, Universidad Torcuato di Tella and Universitat Pompeu Fabra, Pedro Teles, Banco de Portugal and Universidade Católica Portuguesa.

Session B: Political Economics

Room: Anghelu Ruju
Chair: Guido Tabellini

  • Privatisation, Politics and Institutions: A Cross Country Analysis,
    Bernardo Bortolotti, Università di Torino and Fondazione eni Enrico Mattei, Domenico Siniscalco, Università di Torino and Fondazione eni Enrico Mattei.
  • Suboptimal Rules Rather than Discretion in Representative Democracies,
    V.V. Chari, University of Minnesota, Larry Jones, Northwestern University, Ramon Marimon, European University Institute and Universitat Pompeu Fabra.
  • Electoral Competition and Political Rents,
    Michele Polo, Università Bocconi.
  • Inequality, Inflation and Central Bank Independence,
    Jim Dolmas, Southern Methodist University, Gregory W. Huffman, Southern Methodist University and Federal Reserve Bank of Dallas, Mark A. Wynne, Federal Reserve Bank of Dallas.

Session C: Applications in Structural Estimation of Multi-Agent Models

Room: Cabirol
Chair: Kenneth Wolpin

  • The Minimum Wage and Labor Market Outcomes: Theory and Evidence,
    Christopher Flinn, New York University.
  • The Effect of Statistical Discrimination on Black-White Wage Differentials: Estimating a Model with Multiple Equilibria,
    Andrea Moro, University of Minnesota.
  • Estimating a Bargaining Model with Asymmetric Information: Evidence from Medical Malpractice Disputes,
    Holger Sieg, Duke University.
  • Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies,
    Gerard van den Berg, Free University Amsterdam.

Session D: Labor Market Search

Room: Calik
Chair: Randall Wright

  • Equilibrium Search Models with Firm-Specific Capital: Theory and Estimation,
    Kenneth Burdett, Essex University, Michael S. Nielsen, University of Aarhus.
  • The Dynamics of Informal Employment,
    Jane Ihrig, University of Virginia, Karine Moe, Macalester College.
  • A Matching Model of Endogenous Skill Requirements with On-the-Job Search,
    James Albrecht, Georgetown University, Susan Vroman, Georgetown University.
  • Efficiency and Labor-Market Search in a Dynamic General Equilibrium Model,
    Arnaud Cheron, Université de Paris I.

Session E: Capacity Utilization

Room: Dragunara
Chair: Pamela Labadie

  • Capital Utilization: A (Another?) Fully Worked-Out General Equilibrium Model,
    Martial Dupaigne, Université de Cergy-Pontoise and CREST.
  • Agency Costs, Capital Utilization and the Real Business Cycle,
    Pamela Labadie, George Washington University.
  • Time-to-Build and Capacity Choice,
    Avner Bar-Ilan, University of Haifa, Agnès Sulem, INRIA , Alessandro Zanello, International Monetary Fund.
  • Inventories and Capacity Utilization in a Real Business Cycle Model
    Carlo A. Favero and Marco Maffezzoli, Università Bocconi.

Session F: International Trade and Factor Movements

Room: Baratz
Chair: Graziella Bertocchi

  • Labor Market Institutions, International Capital Mobility, and the Persistence of Underdevelopment,
    Graziella Bertocchi, Università di Modena.
  • Altruism and International Labour Migration,
    Alice Mesnard, CREST and Université de Paris II, Damien Gaumont, Université de Paris II.
  • A Model of Sequential Trade Bloc Formation,
    Jessica D. Tjornhom, University of Minnesota.

Session G: Social Security

Room: Nettuno
Chair: Selo Imrohoroglu

  • Social Security and Myopia,
    Ayse Imrohoroglu, Selahattin Imrohoroglu, Douglas H. Joines, University of Southern California.
  • Social Security and Labor Markets,
    Douglas H. Joines,
    Ayse Imrohoroglu, Selahattin Imrohoroglu, University of Southern California.
  • A Macro-Market Alternative to Unemployment Insurance,
    Marco Del Negro, ITAM.
  • What Can We Learn About Pension Reform from Generational Accounts for the UK?
    James Banks, Institute for Fiscal Studies and University College London, Richard Disney, Institute for Fiscal Studies and University of Nottingham, Zoe Smith, Institute for Fiscal Studies.

Monday 2

Session A: Fund Management Takeovers

Room: Baratz
Chair: Francesca Cornelli

  • General Equilibrium Implications of Fund Managers' Compensation Fees,
    Domenico Cuoco, Ron Kaniel, University of Pennsylvania.
  • A Model of Dynamic Loss Aversion,
    Nick Barberis, University of Chicago, Ming Huang, Stanford University, Jesus Santos, University of Chicago.
  • A Theory of Takeover Bidding,
    Bilge Yilmaz, University of Pennsylvania.
  • Risk Arbitrage in Takeovers,
    Francesca Cornelli, London Business School, David D. Li, University of Michiga    n.

Session B: Applications in Structural Estimation of Single-Agent Models

Room: Anghelu Ruju
Chair: Chris Flinn

  • Training and Occupation Choice of Highly Skilled Immigrants,
    Sarit Cohen, Zvi Eckstein, Yoram Weiss, Tel Aviv University.
  • An Empirical Model of Inventory Investment by Durable Commodity Intermediaries,
    George Hall, John Rust, Yale University.
  • The Effect of Parental Transfers and Borrowing Constraints on Educational Attainment,
    Michael Keane, University of Minnesota, Kenneth Wolpin, University of Pennsylvania.
  • On the Use of Expectations Data in Estimating Structural Dynamic Models: An Analysis of Career Choices,
    Wilbert van der Klaauw, New York University.

Session C: Economic Growth I

Room: Anghelu Ruju
Chair: Manuel Santos

  • Growth Under Perfect Competition: Heterogeneous Agents,
    Michele Boldrin, Universidad Carlos III de Madrid, David K. Levine, UCLA.
  • Economic Growth with Physical and Human Capital,
    Manuel Santos, University of Minnesota.
  • Malthus to Solow,
    Ed Prescott, University of Minnesota, Gary Hansen, UCLA.
  • Growth under Habit Formation and Keeping Up with the Joneses,
    Guiseppe Ferraguto, Università Bocconi, Patrizio Pagano, Banca d'Italia.

Session D: Applications of Search Models I

Room: Foradada
Chair: Randall Wright

  • Policy Analysis in the Search Model of the Islands,
    Fernando Alvarez, University of Chicago, Marcelo Veracierto, Federal Reserve Bank of Chicago.
  • On the Neutrality for Severance Payments in the Theory of Search Unemployment,
    Pietro Garibaldi, International Monetary Fund, Giovanni Violante, University College London.
  • Taking Another Look at the Diamond Search Model: Asymmetrical Cycles and Fluctuations,
    Masanao Aoki, UCLA.

Session E: Political Economy of Taxation

Room: Calik
Chair: Marco Bassetto

  • A Coalition Theory of Social Security,
    Vincenzo Galasso, Universidad Carlos III de Madrid, Jose Ignacio Conde Ruiz, Universitat Autònoma de Barcelona.
  • Why Non-Social-Security Taxes are Important for Assessing Social Security Reforms,
    Monika Bütler, Tilburg University.
  • Political Economy of Taxation in an Overlapping-Generations Economy,
    Marco Bassetto, Northwestern University.
  • Voting on Unemployment Insurance Generosity: Different Voters, Different Votes,
    Stephane Pallage and Christian Zimmermann, Université du Québec à Montréal.

Session F: Deviations from the Law of One Price

Room: Cabirol
Chair: Caroline Betts

  • Tradability for Goods and Real Exchange Rate Fluctuations,
    Caroline M. Betts, University of Southern California, Timothy J. Kehoe, University of Minnesota.
  • What Can We Learn from Deviations from the Law of One Price?
    Mario J. Crucini, Ohio State University, Chris I. Telmer, Carnegie-Mellon University, Marios Zachariadis.
  • Fixed Versus Floating Exchange Rate,
    Michael Devereux, University of British Columbia and Hong Kong University of Science and Technology, Charles Engel, University of Washington.
  • Consumer Search and International Deviations from the Law of One Price,
    George A. Alessandria, University of Pennsylvania.

Session G: Monetary Policy III

Room: Dragunara
Chair: Pablo Andres Neumeyer

  • Should Honest Governments Sell Futures?
    Pablo Andres Neumeyer, Universidad Torcuato di Tella and New York University, Fernando Alvarez, University of Chicago and Universidad Torcuato di Tella.
  • On the Optimality for Activist Policies with a Less Informed Government,
    Jean-Pascal Benassy, CEPREMAP.
  • Nominal Debt as a Burden to Monetary Policy,
    Giorgia Giovannetti, Università di Firenze and European University Institute, Ramon Marimon, European University Institute and Universitat Pompeu Fabra, Pedro Teles, Banco de Portugal and Universidade Católica Portuguesa.
  • Global Price Stability with Adaptive Agents and Fiscal Constraints,
    Gian Italo Bischi, Università di Urbino, Ramon Marimon, European University Institute and Universitat Pompeu Fabra.

Monday 3

Session A: Macroeconomics

Room: Nettuno
Chair: Ellen McGrattan

  • The Macroeconomic Effects of Big Fiscal Shocks: The Case of World War II,
    Ellen McGrattan, Federal Reserve Bank of Minneapolis, Lee Ohanian, University of Minnesota.
  • The IT Revolution and Stock Prices,
    Jeremy Greenwood, University of Rochester, Boyan Jovanovic, New York University.
  • Aggregate Car Purchases: a Dynamic Discrete Choice Explanation,
    Jerome Adda, University College London, Russell Cooper, Boston University.
  • The Replacement of Durable Goods: an Application to Car Scrappage Schemes,
    Omar Licandro, FEDEA, Antonio Sampayo, Universidad de Santiago.

Session B: Search and Matching Theory

Room: Cabirol
Chair: Kenneth Burdett

  • The Economics of `New Blood': Vintage Human Capital, Involuntary Unemployment and Endogenous Wage Structures,
    Derek Laing, Penn State University, Theodore Palivos, Louisiana State University, Ping Wang, Vanderbilt University.
  • Policy Analysis of Aggregate Demand Management in Search-Based Models,
    Yiting Li, Tsing Hua University, Randall Wright, University of Pennsylvania.
  • Heterogeneity as a Coordination Mechanism,
    Melvyn Coles, Essex University, Jan Eeckhout, Universitat Pompeu Fabra.

Session C: Political Economy of Education

Room: Anghelu Ruju
Chair: Elisabeth Caucutt

  • The Political Economy of Means-Tested Education Vouchers,
    Peter Bearse, University of North Carolina at Greensboro, Gerhard Glomm, Michigan State University, B. Ravikumar, University of Iowa.
  • Higher Education Subsidies and Heterogeneity,
    Elisabeth Caucutt, University of Rochester, Krishna Kumar, University of Southern California.
  • Beyond Serrano vs. Priest: National Funding of Education,
    Jorge Soares, George Washington University.
  • Evaluating the Long-Run Effectiveness of Poverty Policy: A General-Equilibrium Approach,
    John Knowles, University of Pennsylvania.

Session D: Empirical Health Economics

Room: Dragunara
Chair: Chris Flinn

  • Cigarette Consumption over the Life-Cycle: Quantifying Health and Price Effects,
    Jerome Adda and Valerie Lechene, University College London.
  • Estimating Hospital Quality Using a Bayesian Selection Model,
    John Geweke and Gautam Gowrisankaran, University of Minnesota, Robert Town, University of California, Irvine.
  • Parental Investments in the Mental Health of Children,
    Morris Davis, Federal Reserve Board, Michael Foster, Georgia State University.

Session E: Experimentation and Learning

Room: Baratz
Chair: Marcelle Chauvet

  • Market Structure and Experimentation,
    Matteo Bugamelli, Banca d'Italia and Columbia University, Paolo De Santis, McKinsey & Company.
  • Learning Premia,
    Marcelle Chauvet, University of California, Riverside, Simon Potter, Federal Reserve Bank of New York.
  • Strategic Experimentation and Disruptive Technological Change,
    Fabiano Schivardi, Banca d'Italia, Martin Schneider, Stanford University.
  • Strategic Investment in Technological Innovations,
    Kuno Huisman and Peter Kort, Tilburg University.

Session F: Dynamic Contracts

Room: Calik
Chair: Beth Allen

  • Quantitative Asset Pricing Implications of Endogenous Solvency Constraints,
    Fernando Alvarez, University of Chicago and Universidad Torcuato Di Tella, Urban J. Jermann, University of Pennsylvania.
  • Endogenous Risk, Incentives and Aggregate Fluctuations,
    Adriano A. Rampini, Northwestern University.
  • On the Timing of Transactions,
    Beth Allen, University of Minnesota.

Session F: Growth and Business Cycles

Room: Foradada
Chair: Omar Licandro

  • Endogenous vs. Exogenously Driven Fluctuations in Vintage Capital Models,
    Raouf Boucekkine, Université Catholique de Louvain, Fernando del Rio, CEPREMAP, Omar Licandro, FEDEA.
  • Linkages between Growth and Business Cycles,
    Keith Blackburn, University of Manchester, Alessandra Pelloni, Università di Sassari.
  • A Multi-Technique Model of Capital Accumulation and Growth,
    Juan Carlos Cordoba, University of Rochester.
  • On Output Dynamics and Shock Propagation in Real Business Cycle Models with Endogenous Growth,
    Bernd Lucke, Universität Hamburg.

Tuesday 1

Session A: Housing

Room: Anghelu Ruju
Chair: François Ortalo-Magne

  • Loss Aversion and Seller Behavior: Evidence From the