Economics
We propose a new model specification test for multiple-equation systems with cross-equation error and dynamic regressor--error dependences. Conventional tests often rely on exogeneity conditions strong enough to ensure consistency of the…
We study a simple problem of allocating common-value goods. The designer seeks to allocate the goods to as many unit-demand agents as possible without monetary transfers, while agents, who possess partial private information about the…
This paper introduces a new approach for bubble detection based on mixed causal and noncausal autoregressive processes and their tail process representation during an explosive episode. Departing from traditional definitions of bubbles as…
Food market accessibility is a critical yet underexplored dimension of food systems, particularly in low- and middle-income countries. In this paper, we present a continent-wide assessment of spatial food market accessibility in Africa,…
The FAO-GAEZ productivity data are widely used in Economics. However, the empirical literature rarely discusses measurement error. We use two proxies to derive analytical bounds around the effect of agricultural productivity in a setting…
Stochastic frontier models have attracted considerable attention due to the incorporation of an inefficiency term in addition to the conventional error term. In this paper, we propose a general estimation framework for panel stochastic…
Feedback from artificial intelligence (AI) is increasingly easy to access and research has already established that people learn from it. But individuals choose when and how to seek such feedback, and more engaged and motivated individuals…
Aesthetics drives product differentiation in industries such as fashion, interior decor, luxury goods, real estate and hospitality. However, visual differentiation is hard to encode in formal economic analysis. This paper analyses millions…
Peer influence on effort devoted to some activity is often studied when effort is unobserved, and the researcher instead observes an outcome that combines effort with other shocks. For instance, in education, achievement measures such as…
In this paper, we consider estimating spot/instantaneous volatility matrices of high-frequency data collected for a large number of assets. We first combine classic nonparametric kernel-based smoothing with a generalised shrinkage technique…
We study how AI agents form expectations and trade in experimental asset markets. Using a simulated open-call auction populated by autonomous Large Language Model (LLM) agents, we document three main findings. First, AI agents exhibit…
This paper asks how institutional stock-market integration reshapes the transmission of monetary policy through asset prices in small open economies. Motivated by the persistent segmentation of Western Balkan capital markets, we develop a…
We study the existence of pairwise stable allocations in matching markets with contracts and propose a domain restriction that guarantees their existence. Specifically, we define pseudo-substitutable preferences, a domain that strictly…
This paper investigates the evolution of self-referentiality and knowledge flows in economics journals before and after the 2008 financial crisis. Using a multi-level approach, we analyze patterns at the discipline, cluster, and journal…
We consider a setting in which a set of agents are hierarchically organized for a joint venture. They each generate revenues for the joint venture and have individual needs to cover. The aim is to distribute aggregate revenues…
We revisit panel regressions with unobserved heterogeneity through the lens of variance-weighted average treatment effects. Building on established results for cross-sectional OLS and one-way fixed effects panels, we show that two-way panel…
This paper develops a framework for identification, estimation, and inference on the causal mechanisms driving endogenous social network formation. Identification is challenging because of unobserved confounders and reverse causality;…
This paper studies optimal auction design when valuations depend endogenously on post-auction collaboration between the seller and the winning bidder. Both parties exert non-contractible efforts after the auction, generating a double moral…
Motivated by Germany's April 2026 fuel price regulation, in this note I study a two-period pricing problem with demand uncertainty and a rule that prohibits more than one price increase during the day. Under flexible pricing, the firm…
U.S. dollar stablecoins are increasingly used as payment and settlement instruments beyond cryptocurrency markets. With the enactment of the GENIUS Act in 2025, the United States established the first comprehensive federal framework…