STANFORD
INSTITUTE FOR THEORETICAL ECONOMICS
2001
SUMMER WORKSHOP - FINAL PROGRAM
JULY 8 -
AUGUST 21, 2001
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TABLE OF CONTENTS:
I.
SEGMENT 1: POLITICAL ECONOMY AND PUBLIC FINANCE
ORGANIZED BY: DOUGLAS BERNHEIM, and
ANTONIO RANGEL, ECONOMICS
DEPARTMENT, STANFORD UNIVERSITY
EMMANUEL SAEZ
, ECONOMICS DEPARTMENT, HARVARD
UNIVERSITY
DATE: JULY 8 - 10, 2001
SUNDAY 8 JULY
TIME: 9:00-10:15 A.M.
SPEAKER: Nicola Persico - University of Pennsylvania
TITLE: "The Drawbacks of Electoral Competition" (with
lessandro Lizzeri)
TIME: 10:45 A.M.-12:00 P.M.
SPEAKER: Sven Feldmann -
University of Chicago
TITLE: "Informational Lobbying and Political Contributions"
(with Morten Bennedsen)
TIME: 3:00-4:15 P.M.
SPEAKER: Alvaro
Sandroni - University
of Rochester
TITLE: "A Theory of Ethics and Participation in Elections"
(with Timothy Feddersen)[PDF file]
TIME: 4:45-6:00 P.M.
SPEAKER: Jonathan Katz - California
Institute of Technology
TITLE: "Indecision Theory: Explaining Selective Abstention in
Multiple Elections" (with Paolo Ghirardato)[PDF file]
MONDAY 9 JULY
TIME: 9:00-10:15 A.M.
SPEAKER: Antonio Merlo - University of Pennsylvania
TITLE: "Coalition Governments and Comparative Constitutional
Design" (with Hulya Eraslan and Daniel Diermeir)[PDF
file]
TIME: 10:45 A.M.-12:00 P.M.
SPEAKER: Emmanuel
Saez - Harvard
University
TITLE: "Income Inequality in the U.S., 1913-1998"
TIME: 3:00-4:15 P.M.
TITLE: "Towards a Theory of Storable Votes"
TIME: 4:45-6:00 P.M.
SPEAKER: Cecilia Testa -
The London School of Economics
TITLE: "Government Corruption and Legislative Procedures: Is One
Chamber Better than Two?" [PDF file]
TUESDAY 10 JULY
TIME: 9:00-10:15 A.M.
TITLE: "A Theory of Legislative Institutions Part I: Basic
Institutions"
TIME: 10:45 A.M.-12:00 P.M.
SPEAKER: Timothy Besley -
London School of Economics
TITLE: "Intergovernmental Competition and Electoral
Accountability"
TIME: 3:00-4:15 P.M.
TITLE: "Buying the Bums Out: What's the Dollar Value of a Seat in
Congress?" [PDF file] (with Jeff Milyo)
TIME: 4:45-6:00 p.m.
TITLE: "The Self-Interested Rationale for Expanding the
Francise" (with Nicola Persico)
II. SEGMENT 2: GENERAL EQUILIBRIUM: FOUNDATIONS AND
APPLICATIONS TO FINANCIAL MARKETS
ORGANIZED BY: DARRELL DUFFIE , GRADUATE SCHOOL
OF BUSINESS, STANFORD UNIVERSITY,
PETER HAMMOND, and FELIX KUBLER, ECONOMICS DEPARTMENT,
STANFORD UNIVERSITY,
HERAKLES
POLEMARCHAKIS, ECONOMICS DEPARTMENT, BROWN UNIVERSITY
DATE: JULY 16 - 21, 2001
MONDAY 16 JULY
TIME: 11:15 A.M. - 12:30 P.M.
SPEAKER: Ross Starr -
Economics Department, University of California at San
Diego
TITLE: "Why is there Money? Endogenous Derivation of 'money' as the
most Liquid Asset: A Class of Examples" [PDF file]
TIME: 2:00 - 3:15 P.M.
SPEAKER: Aaron
S. Edlin - Economics Department, University
of California at Berkeley
TITLE: "Stopping Above-Cost Predatory Pricing"
TUESDAY 17 JULY
TIME: 9:30 - 10:45 A.M.
SPEAKER: Michael Magill - University of Southern California
TITLE: "Demography and the Predictability of the Stock Market"
(joint with John Geanakoplos and Martine Quinzii))
TIME: 11:15 A.M.- 12:30 P.M.
TITLE: "Margin Requirements and Equilibrium Asset Prices"
TIME: 2:00 -3:15 P.M.
SPEAKER: Ronel Elul - Brown University
TITLE: "Personal Bankruptcy and Incentives in a Dynamic Model of
Entrepreneurship" (joint with Piero Gottardi)
WEDNESDAY 18 JULY
TIME: 9:30 - 10:45 A.M.
SPEAKER: Yeneng Sun -
National University
of Singapore
TITLE: "Approximate Efficiency in a Financial Market"
TIME: 11:15 A.M. - 12:30 P.M.
TITLE: "Financial Markets and Stochastic Growth" (with Leonard
J. Mirman)
TIME: 2:00 - 3:15 P.M.
SPEAKER: Tom
Krebs - Brown
University
TITLE: "On the Non-Existence of Recursive (Markov) Equilibria when
Markets are Incomplete" [PDF file]
THURSDAY 19 JULY
TIME: 9:30 - 10:45 A.M.
SPEAKER: Jayasri
Dutta - University
of Birmingham
TITLE: "Stable Risk Sharing" [PDF file]
TIME: 11:15 A.M. - 12:30 P.M.
TITLE: "Arbitrage and Equilibrium in Non-Walrasian Markets"
TIME: 2:00 - 3:15 P.M.
SPEAKER: Chris
Shannon - University of California at Berkeley
TITLE: "Uncertainty and Risk in Financial Markets " (joint
with L. Rigotti)
FRIDAY 20 JULY
TIME: 9:30 - 10:45 A.M.
SPEAKER: Martine Quinzii - University of California
at Davis
TITLE:"Stochastic OLG Economies" (joint with Michael Magill)
TIME: 11:15 A.M. - 12:30 P.M.
SPEAKER: Axel Anderson - University
of Michigan
TITLE: "Assortative Matching, Reputation, and the Beatles
Breakup" (joint with Lones Smith)
TIME: 2:00 - 3:15 P.M.
SPEAKER: Birgit Grodal - Kobenhavns
Universitet
TITLE: "The Objective of a Firm when Markets are Incomplete:
Efficient Utilization of Resources" (joint with Egbert and Hildegard
Dierker - University
of Vienna)
SATURDAY 21 JULY
TIME: 9:30 - 10:45 A.M.
SPEAKER: Jan
Werner - University
of Minnesota
TITLE: "Greater Risk when States of Nature Matter"
TIME: 11:15 A.M. - 12:30 P.M.
TITLE: "Pareto Improving Taxes" (joint with John Geanakoplos)
[PDF file]
III. SEGMENT 3: MACROECONOMIC UNDERPINNINGS OF DYNAMIC
ASSET PRICING MODELS
ORGANIZED BY: QIANG DAI - NEW
YORK UNIVERSITY, and
KENNETH SINGLETON, GRADUATE SCHOOL
OF BUSINESS, STANFORD
UNIVERSITY
DATE: JULY 30 - AUGUST 3, 2001
MONDAY 30 JULY
TIME: 9:00-10:30 A.M.
SPEAKER: Urban
Jermann - Federal Reserve Bank of Minneapolis
TITLE: "The Size of the Permanent Component of Asset Pricing
Kernels" (joint with Fernando Alvarez)[PDF file]
TIME: 11:00 A.M. - 12:30 P.M.
SPEAKER: Sydney
Ludvigson - Federal Reserve Bank of New
York
TITLE: "Understanding Trend and Cycle in Asset Values: Bulls,
Bears, and the Wealth Effect on Consumption" (joint with Martin Lettau)
TIME: 2:00 - 3:30 P.M
SPEAKER: Dirk
Krueger - Stanford
University
TITLE: "Consumption and Savings Over the Life-Cycle: How Important
are Consumer Durables?" (joint with J. Fernandez-Villaverde)[PDF file ]
TUESDAY 31 JULY
TIME: 9:00 - 10:30 A.M.
SPEAKER: Paul
Willen - University
of Chicago
TITLE: "On the Gains to International Trade in Risky Financial
Assets" (joint with S. Davis and J.
Nalewaik)
TIME: 11:00 A.M. - 12:30 P.M.
SPEAKER: John
C. Heaton - University
of Chicago
TITLE: "Capital Structure, Hurdle Rates and Portfolio Choice --
Interactions in an Entrepreneurial Firm"
WEDNESDAY 1 AUGUST
TIME: 9:00 - 10:30 A.M.
SPEAKER: Qiang Dai- New York University
TITLE: "Asset Pricing in a Neoclassical Model" [PDF file]
TIME: 11:00 A.M. - 12:30 P.M.
TITLE: "Mismeasurement of the Elasticity of Intertemporal
Substitution: The Role of Limited Stock Market Participation"[PDF file]
THURSDAY 2 AUGUST
TIME: 9:00 - 10:30 A.M.
TITLE: "Robustness and Uncertainty Aversion"[PDF file]
TIME: 11:00 A.M. - 12:30 P.M.
SPEAKER: Martin
Lettau - Federal Reserve Bank of New
York
TITLE: "What's Ailing Traditional Valuation Ratios? Labor Income
and the Long-run Value of the Stock Market" (joint with Sydney Ludvigson)
</H4
TIME: 3:30-5:00 P.M.
FRIDAY 3 AUGUST
TIME: 9:00 - 10:30 A.M.
SPEAKER: Monika
Piazzesi - University of California at Los
Angeles
TITLE: "Monetary Policy, Inflation, and Interest Rate Risk"
(joint with John Cochrane)
TIME: 11:00 A.M. - 12:30 P.M.
SPEAKER: Andrea Buraschi - University
of Chicago
TITLE: "How Large is the Inflation Risk Premium: A Monetary Model
of the Term Structure" (joint with Alexia Jiltsov)
ORGANIZED BY: JONATHAN LEVIN and
ILYA SEGAL ,
ECONOMICS DEPARTMENT, STANFORD
UNIVERSITY,
MICHAEL
WHINSTON , DEPARTMENT OF ECONOMICS, NORTHWESTERN UNIVERSITY
DATE: AUGUST 2 - 4, 2001
THURSDAY 2 AUGUST
TIME: 9:30 - 10:45 A.M.
SPEAKER: Illoong Kwon - University of Michigan
TITLE: "Incentives, Wages and Promotions: Theory and Evidence"
[PDF file]
TIME: 11:00 A.M. - 12:15 P.M.
SPEAKER: Julie
Mortimer - University of California at Los
Angeles
TITLE:"The Effects of Revenue-Sharing Contracts on Welfare in
Vertically Separated Markets: Evidence from the Video Rental Industry" [PDF file]
TIME: 2:00 - 3:45 P.M.
SPEAKER: Thomas Hubbard -
University of Chicago
TITLE: "Make Versus Buy in Trucking: Asset Ownership, Job Design,
and Information" (with George Baker)" [PDF
file]
TIME: 4:00 - 5:30 P.M.
SPEAKER: Ulrike Malmendier - Harvard
University
TITLE: "Self-Control in the Market: Evidence from the Health Club
Industry" (with Stefano Della Vigna)
FRIDAY 3 AUGUST
TIME: 8:30-9:45 A.M.
TITLE: "Testing for Moral Hazard on Dynamic Insurance Data"
(with J. Abbring, J. Heckman and J. Pinquet) [PDF file]
TIME: 9:45 - 11:00 A.M.
SPEAKER: Igal Hendel - University of Wisconsin
"The Role of Commitment in Dynamic Contracts:
Evidence from Life Insurance" (with Alessandro Lizzeri)[PDF file]
TIME: 11:30 A.M. - 12:45 P.M.
SPEAKER: Amy Finkelstein - Massachusetts Institute of Technology
TITLE: "Adverse Selection in Insurance Markets: Policyholder
Evidence from the U.K.
Annuity Market"(with James Poterba) [PDF file]
TIME: 2:15 - 3:30
SPEAKER: Paul
Oyer - Graduate School of Business, Stanford University
TITLE: "Why Do Some Firms Give All Employees Stock Options?: An
Empirical Examination of Alternative Theories" (co-authored with Scott
Schaefer - Kellogg Graduate School of Management at Northwestern University)[PDF file
SATURDAY 4 AUGUST
TIME: 9:30-10:45 A.M.
SPEAKER: Marc
Ivaldi - IDEA and Ecole des Hautes Etudes en Sciences Sociales, Toulouse, France
TITLE: "Incentive Regulator Policies: The Case of Public Transit
Systems in France"
[PDF file]
TIME: 11:00 A.M.-12:15 P.M.
SPEAKER: Pierre
Dubois- University of Toulouse
TITLE: "Moral Hazard, Land Fertility, and Sharecropping in a Rural
Area of the Philippines"[PDF file]
TIME: 2:00-3:45 P.M.
SPEAKER: Bruce Shearer - Laval University
TITLE: "Piece Rates, Fixed Wages and Incentives: Evidence from a
Field Experiment" [PDF file]
TIME: 4:00 - 5:30 P.M.
SPEAKER: Daniel
Ackerberg - University of California at Los
Angeles
TITLE: "Endogenous Matching and the Empirical Determinants of
Contract Form" (with Botticini)[PDF file]
V. SEGMENT 5: STRUCTURAL ECONOMETRIC MODELS IN LABOR,
PUBLIC FINANCE AND INDUSTRIAL ORGANIZATION
ORGANIZED BY: STEVEN BERRY , ECONOMICS
DEPARTMENT, YALE UNIVERSITY,
and
FRANK WOLAK, ECONOMICS DEPARTMENT,
STANFORD UNIVERSITY
DATE: AUGUST 7 - 10, 2001
TUESDAY 7 AUGUST
TIME: 9:00-10:00 A.M.
SPEAKER: Patrick
Bajari - Stanford
University
TITLE: "Demand Estimation with Heterogeneous Consumers and
Unobserved Product Characteristics: A Hedonic Approach" (with Lanier
Benkard) [PDF
file]
TIME: 10:30-11:30 A.M.
TITLE: "Estimating the Amenity Costs of Global Warming in Brazil: Getting
the Most from Available Data"
TIME: 1:30-2:30 P.M.
SPEAKER: Ariel Pakes -
Harvard University
TITLE: "A Reconsideration of Hedonic Price Indices with an
Application to PC's" [Postscript file]
TIME: 3:00-4:00 P.M.
SPEAKER: Christopher
Taber - Northwestern University
TITLE: "An Empirical Model of the U.S. Labor Market 1970-2000"
(joint with James Heckman and Lance Lochner)
WEDNESDAY 8 AUGUST
TIME: 9:00-10:00 A.M.
SPEAKER: Matthew Shum -
Johns Hopkins University
TITLE: "Online Research Costs: Nonparametric Estimates from
Equilibrium Models" (joint with Han Hong - Princeton University)
TIME: 10:30-11:30 A.M.
SPEAKER: Harry
Paarsch - University
of Iowa
TITLE: "The Stochastic Implications of Rent Maximization: An
Application to Stumpage Rates for Timber in British Columbia" (co-authored with M.
Ryan Haley)
TIME: 1:30-2:30 P.M.
SPEAKER: John
Rust - Yale University
TITLE: "Middle Men Versus Market Makers: A Theory of Competitive
Exchange" (with George Hall) [PDF file]
TIME: 3:00-4:00 P.M.
SPEAKER: Ali Hortacsu - Stanford
University
TITLE: "An Empirical Analysis of Bidding Strategies and Mechanism
Choice in the Turkish Treasury Auction Market" [PDF file] and
[PDF file]
THURSDAY 9 AUGUST
TIME: 9:00-10:00 A.M.
SPEAKER: Philip A. Haile -
University of Wisconsin-Madison
TITLE: "Identification of Standard Auction Models" (joint with
Susan Athey)
TIME: 10:30-11:30 A.M.
SPEAKER: Peter
Davis - MIT Sloan School
of Management
TITLE: "Simple Demand Models for Market Level Data" [PDF file]
TIME: 1:30-2:30 P.M.
SPEAKER: Peter Reiss - Graduate School
of Business, Stanford
University
TITLE: "Household Electricity Demand, Revisited" (joint with
Matthew White) [PDF
file]
FRIDAY 10 AUGUST
TIME: 9:00-10:00 A.M.
SPEAKER: Patrick
Bayer - Yale University
TITLE: "The Causes and Consequences of Residential Segregation: An
Equilibrium Analysis of Neighborhood Sorting" (joint with Robert McMillan
- University of Toronto and Kim Rueben - Public Policy Institute of California (PPIC) [Word file]
TIME: 10:30-11:30 A.M.
TITLE: "Living Rationally Under the Volcano? Heavy Drinking and
Smoking Among the Elderly" (joint with Holger Sieg and Frank Sloan)
TIME: 1:30-2:30 P.M.
SPEAKER: Dennis
Epple - Carnegie
Mellon University
TITLE: "Peer Effects, Financial Aid, and Selection of Students into
Colleges and Universities: An Empirical Analysis" (with Richard Romano and
Holger Sieg) [PDF file]
ORGANIZED BY: ADAM BRANDENBURGER, HARVARD BUSINESS
SCHOOL,
YOSSI FEINBERG, GRADUATE SCHOOL
OF BUSINESS, STANFORD
UNIVERSITY,
EDDIE DEKEL ,
ECONOMICS DEPARTMENT, NORTHWESTERN UNIVERSITY
DATE: AUGUST 13 - 14, 2001
MONDAY 13 AUGUST
TIME: 9:30 - 10:30 A.M.
TITLE: "The Power of Paradox: Some Recent Developments in
Interactive Epistemology"
TIME: 11:00 - 12:00 P.M.
SPEAKER: Amanda Friedenberg - Harvard
University
TITLE: "When Does Common Assumption of Rationality Lead to Nash
Equilibrium?" (joint with Adam Brandenburger)
TIME: 2:00 - 3:00 P.M.
SPEAKER: Srihari Govindan - University
of Western Ontario
TITLE: "Perfect Equilibrium and Lexicographic Beliefs" (joint
with Tilman Klumpp) [PDF file]
TIME: 3:30 - 4:30 P.M.
SPEAKER: Aviad
Heifetz - California Institute of Technology
TITLE: "The Evolutionary Role of Toughness in Bargaining"
TUESDAY 14 AUGUST
TIME: 9:30 - 10:30 A.M.
SPEAKER: Michael
Ryall - University
of Rochester
TITLE: "Causal Assessment in Finite Extensive-Form Games"
(with Jose Penalva-Zuasti) [PDF file]
TIME: 11:00 A.M.-12:00 P.M.
SPEAKER: Dov Samet - Tel
Aviv University
TITLE: "Learning to Play Games in Extensive Form by Valuation"
(with Philippe Jehiel) [PDF file]
TIME: 2:00-3:00 P.M.
SPEAKER: Noah Williams
- University
of Chicago
TITLE: "Stability and Long Run Equilibrium in Stochastic Fictitious
Play" [PDF file]
TIME: 3:30-4:30 P.M.
SPEAKER: Muhamet Yildiz -
Massachusetts Institute of Technology
TITLE: "Evolution of Perceptions and Play" (with Daron
Acemoglu)
VII. SEGMENT 7: BEHAVIORAL ECONOMICS
ORGANIZED BY: DOUGLAS BERNHEIM - STANFORD UNIVERSITY,
DAVID
LAIBSON - HARVARD UNIVERSITY, ANTONIO
RANGEL - STANFORD UNIVERSITY, and
PAUL ROMER , GRADUATE SCHOOL
OF BUSINESS, STANFORD
UNIVERSITY
DATE: AUGUST 19 - 21, 2001
SUNDAY 19 AUGUST
TIME: 9:30-10:30 A.M.
SPEAKER: David
Laibson - Harvard
University
TITLE: "Instantaneous Gratification: Theory and Evidence" [PDF file] and "The Hyperbolic Consumption
Model" [PDF file]
TIME: 11:00 A.M.-12:00 P.M.
SPEAKER: Daniel Houser
- University
of Arizona
TITLE: "A Functional Imaging Study of Cooperation in Two Person
Reciprocal Exchange" (with Kevin McCabe)
TIME: 2:30-3:30 P.M.
TITLE: "Self-Control in Peer Groups" (with Roland Benabou and
Jean Tirole) [PDF file]
TIME: 3:30-4:30 P.M.
SPEAKER: Drazen Prelec - MIT Sloan
School of Management
TITLE: "Self-signalling and Self-deception" [PDF file]
TIME: 5:00-6:00 P.M.
SPEAKER: Ruqu Wang - Queen's University
TITLE: "On Some Implications of Backward Discounting" (with
Debraj Ray)
MONDAY 20 AUGUST
TIME: 9:30-10:30 A.M.
SPEAKER: Andrew
Caplin - New York
University
TITLE: "Discounting, Planning and Saving" (coauthored with
John Ameriks and John Leahy)
TIME: 11:00 A.M.-12:00 P.M.
SPEAKER: Botond Koszegi - University
of California at Berkeley
TITLE: "Who has Feelings?" [PDF file]
TIME: 2:30-3:30 P.M.
SPEAKER: Antonio Rangel -
Stanford University
TITLE: "Addiction, Conditioning, and the Visceral Brain" (with
Douglas Bernheim)
TIME: 3:30-4:30 P.M.
SPEAKER: George
Loewenstein - Carnegie
Mellon University
TITLE: "Coherent Arbitariness": Stable Demand Curves Without
Stable Preferences [PDF file]
TIME: 5:00-6:00 P.M.
TITLE: "Random Choice and Random Utility"
TUESDAY 21 AUGUST
TIME: 9:30-10:30 A.M.
SPEAKER: Xavier
Gabaix - Massachusetts Institute of Technology
TITLE: "The 6 D Bias and the Equity Premium Puzzle" [PDF file]
TIME: 11:00 A.M.-12:00 P.M.
SPEAKER: Larry Samuelson -
University of Wisconsin-Madison
and Jeroen Swinkels -
Washington University
TITLE: "Information and the Evolution of the Utility Function"
[PDF file]
TIME: 1:30-2:30 P.M.
SPEAKER: Colin
Camerer - California Institute of Technology
TITLE: "Economic Value of EWA Lite: A Functional Theory of Learning
in Games" (with Teck-Hua Ho and Juin-Kuan Chong) [PDF
file]
TIME: 2:30-3:30 P.M.
SPEAKER: Ted
O'Donoghue - Cornell
University
TITLE: "Procrastination on Long-Term Projects: (with Matthew Rabin)
[PDF file]