It is increasingly recognized that Tobin's conjecture that investment is a function of marginal
q is equivalent to the firm's optimal capital accumulation problem with adjustment costs. This …

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Econometrics provides first-year graduate students with a thoroughly modern introduction to the …

This paper examines the Japanese economy in the 1990s, a decade of economic stagnation.
We find that the problem is not a breakdown of the financial system, as corporations large …

Commodity futures risk premiums vary across commodities and over time depending on the
level of physical inventories. The convenience yield is a decreasing, nonlinear function of …

We derive from a model of investment with multiple capital goods a one-to-one relation between
the growth rate of the capital aggregate and the stock market-based Q. We estimate the …

This paper uses the Panel Study of Income Dynamics to test whether risk-sharing is
complete between or within American families. The tests accommodate a wide variety in the …

What is the basic economic decision-making unit? Is it the household or the extended family?
This question is fundamental to economic analysis and policy design. The answer given by …

Why didn’t the Japanese miracle take place before World War II? The culprit we identify is a
barrier that kept prewar agricultural employment constant. Using a standard neoclassical two…

This paper uses PSID data on the extended family to test whether inter vivos transfers from
parents to children are motivated by altruism. Specifically, the paper tests whether an …

This paper surveys recent empirical work on tests for liquidity constraints.The focus of the
survey is on the tests based on the Euler equation. After examining the technical aspects of the …