Published Papers

Published and forthcoming papers are listed in reverse chronological order.

"Equity Premia with Benchmark Levels of Consumption: Closed-Form Results," Chapter 4 in Rajnish Mehra (ed.) Handbook of the Equity Risk Premium, Amsterdam: Elsevier, 2008, pp. 117 - 157.
"Optimal Inattention to the Stock Market," American Economic Review, 97, 2 (May 2007), 244-249, with Janice C. Eberly and Stavros Panageas.
"Optimal Taxation When Consumers Have Endogenous Benchmark Levels of Consumption," The Review of Economic Studies, 72, 1 (January 2005), 21-42.
"The Effects of a Baby Boom on Stock Prices and Capital Accumulation in the Presence of Social Security," Econometrica, 71, 2 (March 2003), 551-578.
Comment on Michael Hurd: "Bequests: By Accident or by Design?" in Alicia H. Munnell and Annika Sunden (eds.) Death and Dollars: The Role of Gifts and Bequests in America, Washington, D.C.: The Brookings Institution, 2003, pp. 118-126.
"On the Invariance of the Rate of Return to Convex Adjustment Costs," Review of Economic Dynamics 5, 3 (July 2002), 586-601; [supercedes "The Golden Rule with Convex Adjustment Costs"].
An Exploration of the Effects of Pessimism and Doubt on Asset Returns," Journal of Economic Dynamics and Control, 26, 7-8 (July 2002), 1075-1092.
"Will Bequests Attenuate the Predicted Meltdown in Stock Prices When Baby Boomers Retire?" Review of Economics and Statistics, 83, 4 (November 2001), 589-595. Reprinted as Chapter 9 in Robin Brooks and Assaf Razin (eds.) Social Security Reform: Financial and Political Issues in International Perspective, New York, NY: Cambridge University Press, 2005, pp. 307-319.
"The Effects of Investing Social Security Funds in the Stock Market When Fixed Costs Prevent Some Households from Holding Stocks," American Economic Review, 91, 1 (March 2001), 128-148. [previously circulated under the title of "The Aggregate Effects of Including Equities in the Social Security Trust Fund"]
"The Social Security Trust Fund, the Riskless Interest Rate, and Capital Accumulation," in John Campbell and Martin Feldstein (eds.) Risk Aspects of Investment-Based Social Security Reform," Chicago: The University of Chicago Press, 2001, Chapter 5, pp. 153 - 193.
“Comment on Chapters 2, 3, and 4,” in Martin Feldstein (ed.) The Costs and Benefits of Price Stability, Chicago: The University of Chicago Press, 1999, 180-191.
"The Effects of Irreversibility and Uncertainty on Capital Accumulation," Journal of Monetary Economics, 44, 3 (December 1999), 339-377. [ link via Journal of Monetary Economics "Complete Papers Online"]
"Risk Premia and Term Premia in General Equilibrium," Journal of Monetary Economics, 43, 1 (February 1999), 3-33 [ link via Journal of Monetary Economics "Complete Papers Online"]
"The Mix and Scale of Factors with Irreversibility and Fixed Costs of Investment," in Bennett McCallum and Charles Plosser (eds.) Carnegie-Rochester Conference Series on Public Policy, 48 (June 1998), 101-135, with Janice C. Eberly. [ abstract]
"An Exact Solution for the Investment and Market Value of a Firm Facing Uncertainty, Adjustment Costs, and Irreversibility," Journal of Economic Dynamics and Control, 21, 4-5 (May 1997), 831-852, with Janice C. Eberly. [ abstract]
"Comment on 'The Costs and Benefits of Going from Low Inflation to Price Stability' by Martin Feldstein," in Christina D. Romer and David H. Romer (eds.) Reducing Inflation: Motivation and Strategy, Chicago: The University of Chicago Press, 1997, 156-166.
"Optimal Investment with Costly Reversibility," Review of Economic Studies, 63, 4 (August 1996), 581-593, with Janice C. Eberly.
"Options, the Value of Capital, and Investment," Quarterly Journal of Economics, 111,3 (August 1996), 753-777, with Avinash Dixit, Janice C. Eberly, and Robert S. Pindyck.
"A Unified Model of Investment under Uncertainty," American Economic Review, 84, 1 (December 1994), 1369-1384, with Janice C. Eberly. (reprinted in Kevin D. Hoover (ed.) The Economic Legacy of Robert Lucas, Jr., Volume III, Northampton, MA: Edward Elgar Publishing Limited, 1999.)
"Exact Solutions for Expected Rates of Return Under Markov Regime Switching: Implications for the Equity Premium Puzzle," Journal of Money, Credit and Banking, 26, 3 (August 1994, Part 1), 345-361.
"Financing Losers in Competitive Markets," Journal of Financial Intermediation, 3, 2 (March 1994), 139-165, with George J. Mailath.
"Intergenerational Altruism and the Effectiveness of Fiscal Policy--New Tests Based on Cohort Data," in Toshiaki Tachibanaki (ed.) Savings and Bequests, Ann Arbor: University of Michigan Press, 1994, 167-196, with Laurence J. Kotlikoff.
"Comments on J. Bradford DeLong and Lawrence H. Summers, 'Equipment Investment and Economic Growth: How Strong Is the Nexus?'," Brookings Papers on Economic Activity, 1992:2, 200-205.
"Can the Government Roll Over Its Debt Forever?," Business Review, Federal Reserve Bank of Philadelphia, November/December 1992, 3-18. Reprinted in Handbook of Debt Management, Gerald J. Miller (ed.), (New York: Marcel Dekker, Inc.), 1996.
"Fiscal Policy with Impure Intergenerational Altruism," Econometrica, 59, 6 (November 1991), 1687-1711, with B. Douglas Bernheim.
"The Equity Premium Puzzle," Business Review, Federal Reserve Bank of Philadelphia, (September/October 1991), 3-14. (to be reprinted in The Financial Institutions and Markets Reader, second edition, edited by Robert W. Kolb, Kolb Publishing Co., Miami, Florida.)
"Some Observations on Demographics and Saving: A Comment," Carnegie-Rochester Conference Series on Public Policy, 34 (Spring 1991), 157-162.
"Asset Prices under Habit Formation and Catching Up with the Joneses," American Economic Review, 80, 2 (May 1990), 38-42.
"Birth, Death and Taxes," Journal of Public Economics, 39, 1 (June 1989), 1-15.
"Consumption and Investment," Chapter 14 in Benjamin M. Friedman and Frank Hahn (eds.), Handbook of Monetary Economics, Volume II, Amsterdam: Elsevier Science Publishers, 1990, 725-778. [ introduction]
"Assessing Dynamic Efficiency: Theory and Evidence," Review of Economic Studies, 56, 1 (January 1989), 1-20, with N. Gregory Mankiw, Lawrence H. Summers and Richard J. Zeckhauser.
"Stock Prices under Time-Varying Dividend Risk: An Exact Solution in an Infinite-Horizon General Equilibrium Model," Journal of Monetary Economics, 22, 3 (November 1988), 375-393.
"Investment and Sales: Some Empirical Evidence," in William A. Barnett, Ernst R. Berndt, and Halbert White (eds.), Dynamic Econometric Modelling, Cambridge University Press, 1988, 269-296, with Olivier J. Blanchard.
"An Analysis of Fiscal Policy under Operative and Inoperative Bequest Motives," in Elhanan Helpman, Assaf Razin, and Efraim Sadka (eds.), Economic Effects of the Government Budget, M.I.T. Press, 1988, 91-106.
"The Implications of Insurance for the Efficacy of Fiscal Policy," Journal of Risk and Insurance, 55, 2 (June 1988), 339-378.
"Specification of the Joy of Giving: Insights from Altruism," Review of Economics and Statistics, 70, 1 (February 1988), 145-149, with Mark Warshawsky.
"Fiscal Policies and International Financial Markets: Comment," in Jacob A. Frenkel (ed.) International Aspects of Fiscal Policies, University of Chicago Press, 1988, 217-221.
"Operative Gift and Bequest Motives," American Economic Review, 77, 5 (December 1987), 1037-1047.
"Comments," in Susan M. Wachter (ed.) Social Security and Private Pensions: Providing for Retirement in the 21st Century, D. C. Heath and Company, 1988, 35-40.
"Optimal Monetary Growth," Journal of Monetary Economics, 19, 3 (May 1987), 437-450.
"The Ricardian Equivalence Theorem," in John Eatwell, Murray Milgate and Peter Newman (eds.), The New Palgrave: A Dictionary of Economic Theory and Doctrine, Vol. 4, The Macmillan Press, Ltd., September 1987, 174-179.
"Anticipated Tax Changes and the Timing of Investment: Comment," in Martin Feldstein (ed.) The Effects of Taxation on Capital Formation, University of Chicago Press, 1987, 196-200.
"Aggregate Savings in the Presence of Private and Social Insurance," in Rudiger Dornbusch, Stanley Fischer and John Bossons (eds.) Macroeconomics and Finance: Essays in Honor of Franco Modigliani, M.I.T. Press, 1987, 131-157.
"Capital Accumulation and Uncertain Lifetimes with Adverse Selection," Econometrica, 54, 5 (September 1986), 1079-1097.
"Comment on Kotlikoff, Shoven, and Spivak," Journal of Labor Economics, 4, 3, part 2 (July 1986), S208-S215.
"The Failure of Ricardian Equivalence under Progressive Wealth Taxation," Journal of Public Economics, 30, 1 (June 1986), 117-128.
"The Present Value of Profits and the Cyclical Variability of Investment," Econometrica, 54, 2 (March 1986), 249-273, with Olivier J. Blanchard.
"Precautionary Saving and Accidental Bequests," American Economic Review, 75, 4 (September 1985), 777-791.
"Dynamic Behavior of Capital Accumulation in a Cash-in-Advance Model," Journal of Monetary Economics, 16, 1 (July 1985), 55-71.
"A Stochastic Model of Investment, Marginal q, and the Market Value of the Firm," International Economic Review, 26, 2 (June 1985), 305-322.
"Inventories, Stock-outs and Production Smoothing," Review of Economic Studies, 52, 2 (April 1985), 283-293.
"The Effects of Uncertainty on Investment and the Expected Long-Run Capital Stock," Journal of Economic Dynamics and Control, 7, 1 (February 1984), 39-53.
"R & D and the Market Value of the Firm: A Note," in Griliches, Zvi (ed.), R & D, Patents and Productivity, University of Chicago Press, (1984), 261-269.
"Energy Price Uncertainty and Optimal Factor Intensity: A Mean Variance Analysis," Econometrica, 51, 6 (November 1983), 1839-1845.
"Tax Neutrality in the Presence of Adjustment Costs," Quarterly Journal of Economics, 98, 4 (November 1983), 705-712.
"Market Structure and the Durability of Goods," Review of Economic Studies, 50, 4 (October 1983), 625-637.
"Comment on 'Financing Private Business in an Inflationary Context: The Experience of Argentina between 1976 and 1980,'" in Aspe, Pedro, Rudiger Dornbusch and Maurice Obstfeld (eds.), Financial Policies and the World Capital Market, University of Chicago Press, (1983), 183-185.
"On the Econometric Testing of Rationality-Market Efficiency," Review of Economics and Statistics, 65, 2 (May 1983), 318-323, with Frederic S. Mishkin.
"An Intertemporal Model of Saving and Investment," Econometrica, 51, 3 (May 1983), 675-692, with Olivier J. Blanchard.
"Optimal Investment under Uncertainty," American Economic Review, 73, 1 (March 1983), 228-233.
"An Integrated View of Tests of Rationality, Market Efficiency and the Short-Run Neutrality of Monetary Policy," Journal of Monetary Economics, 11, 1 (January 1983), 3-24, with Frederic S. Mishkin.
"Accelerated Depreciation and the Efficacy of Temporary Fiscal Policy: Implications for an Inflationary Economy," Journal of Public Economics, 19, 1 (October 1982), 23-47.
"Dynamic Effects of Permanent and Temporary Tax Policies in a q Model of Investment," Journal of Monetary Economics, 9 (May 1982), 353-373.
"A Dynamic Model of Investment and Capacity Utilization," Quarterly Journal of Economics, 96, 3 (August 1981), 379-403.
"Taxes, Inflation, and the Durability of Capital," Journal of Political Economy, 89, 3 (June 1981), 548-560.
"Dynamic Adjustment in a Putty-Putty Model: Implications for Testing the Putty-Clay Hypothesis," International Economic Review, 22, 1 (February 1981), 19-36.
"Empirical Investment Equations: An Integrative Framework," in Brunner, Karl and Allan H. Meltzer (eds.), On the State of Macroeconomics, Volume 12 of the Carnegie-Rochester Conference Series on Public Policy, a Supplementary Series to the Journal of Monetary Economics, (1980), 39-91.
"Reply to Prescott's Comments," in Brunner, Karl and Allan H. Meltzer (eds.), On the State of Macroeconomics, Volume 12 of the Carnegie-Rochester Conference Series on Public Policy, a Supplementary Series to the Journal of Monetary Economics, (Spring 1980), 103-105.
"Money Demand during Hyperinflation," Journal of Monetary Economics, 5, 1 (1979), 97-104, with Rudiger Dornbusch, John Huizinga, and Alan Marcus.
"Tax Incentives to Investment: An Assessment of Tax Credits and Tax Cuts," New England Economic Review, (November/December 1978), 54-66.
"Input-Output Pricing in a Keynesian Model as Applied to Portugal," Journal of Development Economics, 5, (1978), 125-138, with Luis M. C. P. Beleza.
"A Economia Portuguesa: Evolucao Recenta e Situacao Actual," in Conferencia International sobre Economia Portuguese, Lisbon, Portugal, (1977), with Miguel Beleza, Jeffrey Frankel, Raymond Hill, and Paul Krugman.
"A Model of the Portuguese Economy," Economia, 1, 1, (1977), with Miguel Beleza, Jeffrey Frankel, Raymond Hill, and Paul Krugman.
"A Comparison of Three Control Algorithms as Applied to the Monetarist Fiscalist Debate," Annals of Economic and Social Measurement, 4, 2, (1975); translated and reprinted in Hacienda Publica Espanola No. 51, (1978).