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A Random Dictator Is All You Need

By Itai Arieli, Yakov Babichenko, Inbal Talgam-Cohen, and Konstantin Zabarnyi

American Economic Journal: Microeconomics

We study information aggregation with a decision maker aggregating binary recommendations from symmetric agents. Each agent’s recommendation depends on her private information about a hidden state. While the decision maker knows the prior distributio...

Wealth Tax Mobility and Tax Coordination

By David R. Agrawal, Dirk Foremny, and Clara Martínez-Toledano

American Economic Journal: Applied Economics

We study the effects of decentralized wealth taxation on mobility and the effectiveness of tax coordination at mitigating tax competition. We exploit the reintroduction of the Spanish wealth tax, after which all regions except Madrid levied positive tax...

State Dependent Government Spending Multipliers: Downward Nominal Wage Rigidity and Sources of Business Cycle Fluctuations

By Yoon Joo Jo and Sarah Zubairy

American Economic Journal: Macroeconomics

In a New Keynesian model with downward nominal wage rigidity (DNWR), we show that government spending is more effective in stimulating output in a low-inflation recession relative to a high-inflation recession. The government spending multiplier is large ...