Temptation and Self-Control: Some Evidence from the Consumer Expenditure Survey

Temptation, Self-Control, Gul-Pesendorfer Preferences, Asset Pricing

Vertical production and trade interdependence and welfare

The authors study international transmissions and welfare implications of monetary shocks in a two-country world with multiple stages of production and multiple border-crossings of intermediate goods. This empirically relevant feature is important, as it has opposite implications for two external spillover effects of a unilateral monetary expansion. If all production and trade are assumed to occur in a single stage, the conflict-of-interest terms-of-trade effect tends to dominate the common-interest efficiency-improvement effect for reasonable parameter values, so that the international welfare effects would depend in general on the underlying assumptions about the currencies of price setting. The stretch of production and trade across multiple stages of processing magnifies the efficiency-improvement effect and dampens the terms-of-trade effect. Thus, a monetary expansion can be mutually beneficial regardless of its source or the pricing assumptions.Production (Economic theory) ; Trade ; Monopolistic competition ; Welfare

Quasi-phase-matching of high-order-harmonic generation using multimode polarization beating

The generalization of quasi-phase-matching using polarization beating and of multimode quasi-phase-matching (MMQPM) for the generation of high-order harmonics is explored, and a method for achieving polarization beating is proposed. If two (and in principle more) modes of a waveguide are excited, modulation of the intensity, phase, and/or polarization of the guided radiation will be achieved. By appropriately matching the period of this modulation to the coherence length, quasi-phase-matching of high-order-harmonic radiation generated by the guided wave can occur. We show that it is possible to achieve efficiencies with multimode quasi-phase-matching greater than the ideal square wave modulation. We present a Fourier treatment of QPM and use this to show that phase modulation, rather than amplitude modulation, plays the dominant role in the case of MMQPM. The experimental parameters and optimal conditions for this scheme are explored

Staggered contracts and business cycle persistence

Staggered price and staggered wage contracts are commonly viewed as similar mechanisms in generating persistent real effects of monetary shocks. In this paper, we distinguish the two mechanisms in a general equilibrium framework. We show that, although the dynamic price setting and the dynamic wage setting equations are alike, a key parameter governing persistence is linked to the underlying preferences and technologies in different ways. Under the staggered wage mechanism, an intertemporal smoothing incentive in labor supply creates a real rigidity that is absent under the staggered price mechanism. Consequently, the two have different implications on persistence. While the staggered price mechanism by itself is incapable of, the staggered wage mechanism has a great potential in generating persistence.Business cycles