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
II. SEGMENT 2: General Equilibrium: Foundations and Applications to Financial Markets
III. SEGMENT 3: Macroeconomic Underpinnings of Dynamic Asset Pricing Models
IV. SEGMENT 4: Empirical Analysis of the Design of Contracts and Organizations
V. SEGMENT 5: Structural Econometric Models in Labor, Public Finance and Industrial Organization
VI. SEGMENT 6: Reasoning in Games
VII. SEGMENT 7: Behavioral Economics

 

 

 

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.

SPEAKER: Alessandra Casella - Columbia University

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.

SPEAKER: Douglas Bernheim, Antonio Rangel, and Luis Rayo - Stanford University

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.

SPEAKER: Timothy Groseclose - Stanford University

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.

SPEAKER: Alessandro Lizzeri - Princeton University

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.

SPEAKER: Daniele Coen-Pirani - Carnegie Mellon University

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.

SPEAKER: Klaus Reiner Schenk-Hoppe - University of Zurich

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.

SPEAKER: Leonidas Koutsougeras - University of Manchester

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.

SPEAKER: Herakles Polemarchakis - Brown University

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.

SPEAKER: Muhammet Fatih Guvenen- Carnegie Mellon University

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.

SPEAKER: Lars Peter Hansen - University of Chicago

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)

 



IV.SEGMENT 4: EMPIRICAL ANALYSIS OF THE DESIGN OF CONTRACTS AND ORGANIZATIONS

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.

SPEAKER: Pierre-Andre Chiappori - University of Chicago

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.

SPEAKER: Christopher Timmins - Yale University

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.

SPEAKER: Peter Arcidiacono - Duke University

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]

 

 

 

I. SEGMENT 6: REASONING IN GAMES

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.

SPEAKER: Adam Brandenburger - Harvard Business School

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.

SPEAKER: Marco Battaglini - Princeton University

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.

SPEAKER: Wolfgang Pesendorfer - Princeton University

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]

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