(with Tapan Mitra and Rahul Roy), Journal of Economic Theory 53, 12-50, 1991.
Summary. This paper is concerned with the qualitative properties of optimal intertemporal programs in a model of point-input flow-output capital theory, when future utilities are discounted. Under a mild condition on the flow-output vector, we establish that optimal programs for every discount factor and every initial state (other than a unique stationary optimal state) will exhibit non-convergence.
(with Francis Bloch and Garance Genicot), Journal of Economic Theory 143, 36-58, 2008.
Summary. This paper studies bilateral insurance schemes across networks of individuals. We investigate the structure of self-enforcing insurance networks. Network links play two distinct and possibly conflictual roles. They act as conduits for both transfers and information; affecting the scope for insurance and the severity of punishments upon noncompliance. Their interaction leads to a characterization of stable networks as suitably “sparse” networks. Thickly and thinly connected networks tend to be stable, whereas intermediate degrees of connectedness jeopardize stability.
(with Rajiv Sethi), Journal of Public Economic Theory 12, 399-406, 2010.
Summary. Elite educational institutions have turned to criteria that meet diversity goals without being formally contingent on applicant identity. Under weak and generic conditions, such color-blind affirmative action policies must be nonmonotone in student test scores.