We model rational herd behavior when the underlying value changes over time, with payoffs that are either dependent or independent of the underlying value. We show that herding does not last forever and is not monotone in signal quality. High correlation among agents' actions does not necessarily imply herding. This suggests alternative empirical methods are needed to detect herding. The model has many applications, including the IPO decision in which payoffs are state dependent. The model implies that the decision to go public is more likely associated with herding than the decision to delay an IPO. Copyright 2002, Oxford University Press.

We model rational herd behavior when the underlying value changes over time, with pay-offs that are either dependent or independent of the underlying value. We show that herding does not last forever and is not monotone in signal quality. High correlation among agents' actions does not necessarily imply herding. This suggests alternative empirical methods are needed to detect herding. The model has many applications, including the IPO decision in which payoffs are state dependent. The model implies that the decision to go public is more likely associated with herding than the decision to delay an IPO.

Since the 2000s, economists across fields have increasingly used consumer credit reporting data for research. We introduce readers to the economics and institutional details of these data. Using examples from the literature, we provide practical guidance on how to use these data to construct economic measures of borrowing, consumption, credit access, financial distress, and geographic mobility. We explain what credit scores measure and why. We highlight how researchers can access credit reporting data via existing datasets or by creating new datasets, including by linking credit reporting data with surveys and external datasets. ( JEL D10, D40, D82, E21, G21, G28, G51)