The psychology gap. In their models, economists assume people plan their lives rationally. Psychologists show that people rely on loose rules of thumb to predict the future. In this article, the authors discuss the gap.
The EMH and the SVAR. The authors add to the literature on structural vector autoregression models by showing that, if it includes one or more variables efficient in the strong form of the efficient market hypothesis, the identifying restrictions frequently imposed in SVARs cannot be satisfied.
Unemployment: separate and unequal. Economic forecasters and policy advisors look closely at unemployment. The authors suggest that regional differences deserve a closer look when calculating the country's overall “natural” rate of unemployment.