Inequality, Taxation, and Sovereign Default Risk

By Minjie Deng

American Economic Journal: Macroeconomics, April 2024

Income inequality and worker migration significantly affect sovereign default risk. Governments often impose progressive taxes to reduce inequality, which redistribute income but discourage labor supply and induce emigration. Reduced labor supply and a sm...

Testing the Effectiveness of Unconventional Monetary Policy in Japan and the United States

By Daisuke Ikeda, Shangshang Li, Sophocles Mavroeidis, and Francesco Zanetti

American Economic Journal: Macroeconomics, April 2024

Unconventional monetary policy (UMP) may make the effective lower bound (ELB) on the short-term interest rate irrelevant. We develop a theoretical model that underpins our empirical test of this "irrelevance hypothesis," based on the simple idea that unde...

Local Ties in Spatial Equilibrium

By Mike Zabek

American Economic Journal: Macroeconomics, April 2024

Someone who lives in an economically depressed place was probably born there. And having workers with local ties who prefer to live in their birthplaces leads to smaller migration responses in depressed places. Smaller migration responses lead to lower re...

Sectoral Heterogeneity in Nominal Price Rigidity and the Origin of Aggregate Fluctuations

By Ernesto Pastén, Raphael Schoenle, and Michael Weber

American Economic Journal: Macroeconomics, April 2024

We study the role of heterogeneity in nominal price rigidity for aggregate fluctuations in a model with sectoral productivity shocks. Theoretically, sectoral heterogeneity in the pricing friction has an ambiguous effect on GDP and aggregate price volatili...

How to Construct Nationally Representative Firm-Level Data from the Orbis Global Database: New Facts on SMEs and Aggregate Implications for Industry Concentration

By Şebnem Kalemli- Özcan, Bent E. Sørensen, Carolina Villegas-Sanchez, Vadym Volosovych, and Sevcan Yeşiltaş

American Economic Journal: Macroeconomics, April 2024

We construct nationally representative firm-level longitudinal data for European countries using financial statements from the Orbis database. We validate our data by comparing its coverage and firm size distribution to official statistics. We showcase tw...

Uncertainty and Information Acquisition: Evidence from Firms and Households

By Heiner Mikosch, Christopher Roth, Samad Sarferaz, and Johannes Wohlfart

American Economic Journal: Macroeconomics, April 2024

We leverage the small open economy Switzerland as a testing ground for basic premises of macroeconomic models of endogenous information acquisition, using tailored surveys of firms and households. Firms and households perceiving a greater exposure to exch...

Credit Supply Shocks and Prices: Evidence from Danish Firms

By Tobias Renkin and Gabriel Züllig

American Economic Journal: Macroeconomics, April 2024

We study the response of firms' output prices to a cut in credit supply. We combine data on loans between Danish firms and banks with survey-based producer prices and transaction-based export unit values. Exploiting banks' heterogeneous exposure to the gl...

My Taxes Are Too Darn High: Why Do Households Protest Their Taxes?

By Brad Nathan, Ricardo Perez-Truglia, and Alejandro Zentner

American Economic Journal: Economic Policy

In the United States and many other countries, taxpayers can file a protest to legally reduce their property taxes. While tax protests can provide a unique opportunity to study the (un)willingness to pay taxes, they have received little attention from ...

Uncertainty Shocks, Adjustment Costs and Firm Beliefs: Evidence From a Representative Survey

By Andreas Diblasi, Heiner Mikosch, and Samad Sarferaz

American Economic Journal: Macroeconomics

This paper studies the dynamic effects of an uncertainty shock on firm expectations. We conduct a survey that confronts managers from a representative firm sample with a model-consistent uncertainty shock scenario. An exogenous increase in uncertainty s...

Medicaid spillovers

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An expansion of Medicaid eligibility for children born after 1983 significantly reduced rates of adult incarceration.

Fighting Poverty One Family at a Time: Experimental Evidence from an Intervention with Holistic, Individualized, Wrap-Around Services

By William N. Evans, Shawna Kolka, James X. Sullivan, and Patrick S. Turner

American Economic Journal: Economic Policy

Families in poverty face numerous barriers to establishing stable economic footing. This paper estimates experimental effects of a holistic, individualized wrap-around service intervention for low-income individuals. The intervention includes a detailed...

Noise-Tolerant Community Enforcement and the Strength of Small Stakes

By Drew Fudenberg and Alexander Wolitzky

American Economic Review: Insights

We study community enforcement in a large population with noisy monitoring. We focus on equilibria in the prisoner’s dilemma that are coordination-proof, meaning that matched partners never play a Pareto-dominated Nash equilibrium in the oneshot game...

Performance pay

[Research Highlight]

August 11, 2021

How important is a compensation structure to attracting and retaining the best teachers?

Call for Papers and Posters: FDIC's 23rd Annual Bank Research Conference

[News]

April 05, 2024

The submission deadline is April 12, 2024.

Call for Papers: CSWEP-sponsored sessions at the 2024 APPAM Fall Research Meeting

[News]

April 05, 2024

The submission deadline is April 8, 2024.

Disability and Distress: The Effect of Disability Programs on Financial Outcomes

By Manasi Deshpande, Tal Gross, and Yalun Su

American Economic Journal: Applied Economics, April 2021

What is the relationship between disability programs and financial distress? We provide the first evidence on this relationship using several markers of financial distress: bankruptcy, foreclosure, eviction, and home sale. Rates of these adverse financial...

The Transmission of Monetary Policy Shocks

By Silvia Miranda-Agrippino and Giovanni Ricco

American Economic Journal: Macroeconomics, July 2021

Commonly used instruments for the identification of monetary policy disturbances are likely to combine the true policy shock with information about the state of the economy due to the information disclosed through the policy action. We show that this sign...

A Reputational Theory of Firm Dynamics

By Simon Board and Moritz Meyer-ter-Vehn

American Economic Journal: Microeconomics, May 2022

We study the life cycle of a firm that produces a good of unknown quality. The firm manages its quality by investing while consumers learn via public breakthroughs; if the firm fails to generate such breakthroughs, its revenue falls and it eventually exit...

Social Protection in the Developing World

By Abhijit Banerjee, Rema Hanna, Benjamin A. Olken, and Diana Sverdlin Lisker

Journal of Economic Literature

Social protection programs have become increasingly widespread in low- and middle-income countries, with their own distinct characteristics to match the environments in which they are operating. This paper reviews the growing literature on the design and ...

Christina Romer, Distinguished Fellow 2023

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