In many economies, long periods of steady growth in aggregate wealth are repeatedly interrupted by pronounced asset-price boom-bust episodes, and real activity typically moves with wealth in such episodes. I build a quantitative life-cycle model of …
People often process numbers in simplified ways. One such simplification is left-digit bias, the tendency to give more weight to the leftmost digit of a number. We study whether this bias affects how households process inflation numbers when forming …
This study assesses fiscal sustainability in contemporary Spain at the regional level. Spain consists of 17 autonomous regions, two fiscal regimes differing in taxing autonomy, and two path-dependent types of communities with more and less …