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Caplin, Andrew

Works: 61 works in 213 publications in 1 language and 2,625 library holdings
Roles: Editor
Classifications: HD7293.Z9, 338.4369080973
Publication Timeline
Publications about Andrew Caplin
Publications by Andrew Caplin
Most widely held works by Andrew Caplin
Housing partnerships a new approach to a market at a crossroads ( file )
6 editions published in 1997 in English and held by 1,190 libraries worldwide
By financing a portion of a home, buyers can devote less time to saving for a down payment, greatly reduce their expenses with smaller mortgages, and retain more of their income to spend, save, and invest. For the broader financial community, Partnership Markets would provide new opportunities for diversification into the residential real estate market. Housing Partnerships: A New Approach to a Market at a Crossroads provides the blueprints of the Housing Partnership structure and the new opportunities it furnishes home owners, while explaining the economics behind the housing and mortgage markets and the financial risks in owning a home. The book looks beyond the benefits to households and considers the concept's wider effects, including changes to the secondary mortgage market, the government's role and changes in housing policy, and the composition of assets held by institutions
The foundations of positive and normative economics : a handbook by Andrew Caplin( Book )
18 editions published between 2008 and 2010 in English and held by 484 libraries worldwide
"The Foundations of Positive and Normative Economics: A Handbook is the first book in a new series by Andrew Caplin and Andrew Schotter. There is currently no guide available on the rapidly changing methodological frontiers of the field of economics. Economists have been introducing new theories and new sources of data at a remarkable rate in recent years, and there are widely divergent views both on how productive these expansions have been in the past, and how best to make progress in the future. The speed of these changes has left economists ill at ease, and has created a backlash against new methods. The series will debate these critical issues, allowing proponents of a particular research method to present proposals in a safe yet critical context, with alternatives being clarified. This first volume, written by some of the most prominent researchers in the discipline, reflects the challenges that are opened by new research opportunities. The goal of the current volume and the series it presages, is to formally open a dialogue on methodology. The editors' conviction is that such a debate will rebound to the benefit of social science in general, and economics in particular. The issues under discussion strike to the very heart of the social scientific enterprise. This work is of tremendous importance to all who are interested in the contributions that academic research can make not only to our scientific understanding, but also to matters of policy"--Jacket
The social discount rate by Andrew Caplin( Book )
13 editions published between 2000 and 2001 in English and held by 88 libraries worldwide
In welfare theory it is standard to pick the consumption stream that maximizes the welfare of the representative agent. We argue against this position, and show that a benevolent social planner will generally place a greater weight on future consumption than does the representative agent. Our analysis has immediate implications for public policy: agents discount the future too much and the government should promote future oriented policies
Durable goods cycles by Andrew Caplin( Book )
10 editions published between 1997 and 1999 in English and held by 84 libraries worldwide
We show that a straight forward approximation of the distribution of durable goods holdings gives rise to a tractable equilibrium (S, s) model of durable demand. We analyze both competitive and monopoly supply. We show that equilibrium interactions lead to elongated impulse responses in demand, to procyclical markups in response to demand shocks, and to countercyclical markups in response to cost shocks
The economics of adjustment by Andrew Caplin( Book )
13 editions published between 1993 and 1995 in English and held by 82 libraries worldwide
In this paper we argue that many topics in macroeconomics can be viewed as part of the broader theory of the economics of adjustment. We argue that existing approaches to the economics of adjustment take a very narrow view of the role of information. We outline an approach to this topic that stresses the role of learning and information externalities, and discussed through examples how these concerns alter the qualitative nature of the adjustment process. In particular, there appears to be a general bias towards the underprovision of information in a variety of settings which leads to inefficient adjustment
Mass layoffs and unemployment by Andrew Caplin( Book )
11 editions published between 1993 and 1994 in English and held by 80 libraries worldwide
Mass layoffs give rise to groups of unemployed workers who possess similar characteristics and therefore may learn from one another's experience searching for a new job. Two factors lead them to be too selective in the job offers that they accept. The first is an information externality: searchers fail to take into account the value of their experience to others. The second is an incentive to free ride: each worker would like others to experiment and reveal information concerning productive jobs. Together these forces imply that in equilibrium the natural rate of unemployment is too high
Retirement consumption : insights from a survey by John Ameriks( Book )
10 editions published in 2002 in English and held by 75 libraries worldwide
Prior research has established that consumption falls significantly at retirement. What is not known is the extent to which this fall is anticipated during the working years. Do working households expect such a large fall in consumption upon retirement, or are they taken by surprise? Using data from a new survey, we show that many working households do expect a considerable fall in consumption when they retire. In fact, those who are already retired report significantly smaller falls in consumption than are expected by those who are still working. We show that participation in the stock market plays a dominant role in explaining the gap between expectations and outcomes, indicating that much of the gap is a result of unexpected stock market appreciation. The survey produces new insights into the high level of uncertainty in the period leading up to retirement, and the surprises that may lie in store when households actually retire
Wealth accumulation and the propensity to plan by John Ameriks( Book )
9 editions published in 2002 in English and held by 73 libraries worldwide
Why do similar households end up with very different levels of wealth? We show that differences in the attitudes and skills with which they approach financial planning are a significant factor. We use new and unique survey data to assess these differences and to measure each household's 'propensity to plan.' We show that those with a higher such propensity spend more time developing financial plans, and that this shift in planning effort is associated with increased wealth. The propensity to plan is uncorrelated with survey measures of the discount factor and the bequest motive, raising a question as to why it is associated with wealth accumulation. Part of the answer lies in the very strong relationship we uncover between the propensity to plan and how carefully households monitor their spending. It appears that this detailed monitoring activity helps households to save more and to accumulate more wealth
The absent-minded consumer by John Ameriks( Book )
7 editions published between 2003 and 2004 in English and held by 66 libraries worldwide
"We present evidence that many households have only a vague notion of what they are spending on various consumption items. We then develop a life-cycle model that captures this absent-mindedness'. The model generates precautionary spending, whereby absent-minded agents tend to consume more than attentive ones. The model also predicts fluctuations over time in the level of attention, and thereby sheds new light on the sharp reduction in consumption both at retirement, and in cyclical downturns. Finally, we find patterns of attention in the data that are consistent with those predicted by the model"--National Bureau of Economic Research web site
Collateral damage : how refinancing constraints exacerbate regional recessions by Andrew Caplin( Book )
9 editions published in 1993 in English and held by 63 libraries worldwide
In the current structure of the U.S. residential mortgage market, a fall in property values may make it very difficult for homeowners to refinance their mortgages to take advantage of falling interest rates. In this paper, we explain the institutional background for this effect and quantify its importance. We confirm that this form of collateral constraint has greatly reduced recent refinancing in states with depressed property markets. We also point to the many ways in which the reduction in refinancing may have inflicted additional damage in these already recession-hit states. Finally, we show that relatively minor institutional changes could have neutralized the damaging effects of the collateral constraints, and we discuss why the institutions have their current structure
Trading frictions and house price dynamics by Andrew Caplin( file )
7 editions published in 2008 in English and held by 41 libraries worldwide
We construct a model of trade with matching frictions. The model provides a simple characterization for the joint proces of prices, sales and inventory. We compare the implications of the model to certain properties of housing markets. The model can generate the large price changes and the positive correlation between prices and sales that we see in the data. Unlike the data, prices are negatively autocorrelated and high inventory predicts price appreciation. We investigate several amendments to the model
A graph theoretic approach to markets for indivisible goods by Andrew Caplin( Computer File )
5 editions published in 2010 in English and held by 37 libraries worldwide
Many important markets, such as the housing market, involve goods that are both indivisible and of budgetary significance. We introduce new graph theoretic techniques ideally suited to analyzing such markets. In this paper and its companion (Caplin and Leahy [2010]), we use these techniques to fully characterize the comparative static properties of these markets and to identify algorithms for computing equilibria
A testable theory of imperfect perception by Andrew Caplin( Computer File )
5 editions published in 2011 in English and held by 36 libraries worldwide
We introduce a rational choice theory that allows for many forms of imperfect perception, including failures of memory, selective attention, and adherence to simplifying rules of thumb. Despite its generality, the theory has strong, simple, and intuitive implications for standard choice data and for more enriched choice data. The central assumption is rational expectations: decision makers understand the relationship between their perceptions, however limited they may be, and the (stochastic) consequences of their available choices. Our theory separately identifies two distinct "framing" effects: standard effects involving the layout of the prizes (e.g. order in a list) and novel effects relating to the information content of the environment (e.g. how likely is the first in the list to be the best). Simple experimental tests both affirm the basic model and confirm the existence of information-based framing effects
Defaults and attention the drop out effect by Andrew Caplin( Computer File )
6 editions published in 2012 in English and held by 36 libraries worldwide
When choice options are complex, policy makers may seek to reduce decision making errors by making a high quality option the default. We show that this positive effect is at risk because such a policy creates incentives for decision makers to "drop out" by paying no attention to the decision and accepting the default sight unseen. Using decision time as a proxy for attention, we confirm the importance of this effect in an experimental setting. A key challenge for policy makers is to measure, and if possible mitigate, such drop out behavior in the field
Comparative statics in markets for indivisible goods by Andrew Caplin( Computer File )
5 editions published in 2010 in English and held by 35 libraries worldwide
We complete the study of comparative statics initiated in Caplin and Leahy [2010], which introduced a new mathematical apparatus for understanding NTU allocation markets, as such covering the housing market and other markets for large indivisible goods. We introduce homotopy methods to characterize how equilibrium changes in response to arbitrary parameter changes. Generically, we show that there can be five and only five qualitatively distinct forms of market transition: Graft; Prune and Plant; Prune and Graft; Cycle and Reverse; and Shift and Replant. Our path-following methods identify new algorithms for computing market equilibria
Menu costs and the neutrality of money by Andrew Caplin( Book )
4 editions published between 1987 and 1993 in English and held by 22 libraries worldwide
A model of endogenous price adjustment under money growth is presented. Firms follow (s, S) pricing policies and price revisions are imperfectly synchronized. In the aggregate, price stickiness disappears and money is neutral. The connection between firm price adjustment and relative price variability in the presence of monetary growth is also investigated. The results contrast with those obtained in models with exogenous fixed timing of price adjustment
Is the FHA creating sustainable homeownership by Andrew Caplin( file )
4 editions published in 2012 in English and held by 15 libraries worldwide
We produce first results on the sustainability of homeownership for recent (2007-2009) FHA-insured borrowers. More than 15 percent of these borrowers have already been 90 days or more delinquent, while less than 7 percent have completed their graduation to sustainable homeownership by finally paying off all FHA mortgages. We project that the proportion who have been 90 days or more delinquent will rise above 30 percent within five years, while fewer than 15 percent will have completed their graduation to sustainable homeownership. We show that the FHA uses an outmoded econometric model that leads it to underestimate delinquency risk to borrowers and financial risks to taxpayers. Fannie Mae and Freddie Mac use this same outmoded model. More accurate estimates would serve the cause of transparency and help policy-makers to determine these organizations' appropriate roles in the U.S. housing finance markets of the future
Behavioral implications of rational inattention with Shannon entropy by Andrew Caplin( Computer File )
2 editions published in 2013 in English and held by 14 libraries worldwide
The model of rational inattention with Shannon mutual information costs is increasingly ubiquitous. We introduce a new solution method that lays bare the general behavioral properties of this model and liberates development of alternative models. We experimentally test a key behavioral property characterizing the elasticity of choice mistakes with respect to attentional incentives. We find that subjects are less responsive to such changes than the model implies. We introduce generalized entropy cost functions that better match this feature of the data and that retain key simplifying features of the Shannon model
Handbook of economic methodology ( Book )
in English and held by 10 libraries worldwide
On 64% - majority rule by Andrew Caplin( Book )
4 editions published between 1985 and 1986 in English and held by 8 libraries worldwide
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Alternative Names
Caplin, A. 1956-
Caplin, Andrew S. 1956-
Caplin, Andrew Stephan 1956-
English (149)
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