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Habit Preferences

I study wage-setting under worker preferences that feature habit formation or switching costs. Workers may have particularly strong preferences for their current firm and face a utility cost of changing jobs. This could be because workers become …

Optimal Unemployment Insurance Schedules

I study the optimal unemployment benefit over time, where workers can dissave assets and alter their reservation wages over the course of unemmployment. I study whether, conditional on a given level of expenditure, benefits should be flat or decline …

Schooling and Labor Market Consequences of School Construction in Indonesia: Response to a Comment

We reply to the comments of Roodman (2022) regarding the data and econometric specifications of Duflo (2001). We replicate Roodman's results and agree with his comments about the errors in the coding of variables. We run additional specifications …

Exhaustible Resource Extraction as a Dynamic Game

We study the strategic interaction in the extraction of exhaustible resources. The Hotelling rule gives the optimal extraction choice for a monopolist owner of an exhaustible resource, but we extend that to consider the dynamic game played by …

Dynamic Games of R&D Investment

We study a dynamic investment game in which firms are differentiated by their R&D stocks and therefore productivities. When investing in R&D, firms face "success-breeds-success" probabilities, where accumulated successes improve their subsequent …

The Impacts of Predictive Scheduling Laws

We study the consequences of predictive scheduling laws for wages, emmployment, hours, and the variability of hours worked. A number of states and municipalities have recently passed these laws, which require employers to give their employees advance …

Optimal Policy to Achieve 2 Degrees Warming

We extend the model of Cai and Lontzek (2019) to study the optimal policy chosen by a planner that wants to keep warming under 2 degrees. We consider a carbon tax and a cap and trade scheme. We also add differentiated regions, the global north and …