this mendoza, quadrini, rios-rull (JPE 2009) makes me think again that theory is ten times nicer than empirics; it's true that sometimes you get really lost, but this time i feel like i would like to be one of those for which "applied econ is too difficult, so they concentrate on theory" (see phd comics).
anyway, my thesis goes in the empirics direction, trying to keep the intuition and less to look for fancy econometrics; time is a damn good pressure and hopefully my ally to finish it in time and do a decent job. so i leave fascinating equations for future work, hopefully...
btw, i have been missing this place...
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