On DSGE Models -- by Lawrence J. Christiano, Martin S. Eichenbaum, Mathias...
The outcome of any important macroeconomic policy change is the net effect of forces operating on different parts of the economy. A central challenge facing policy makers is how to assess the relative...
View ArticleEscalation of Scrutiny: The Gains from Dynamic Enforcement of Environmental...
The U.S. Environmental Protection Agency uses a dynamic approach to environmental enforcement for air pollution, with repeat offenders subject to high fines and designation as high priority violators...
View ArticleReturn Migrants' Self-selection: Evidence for Indian Inventor -- by Stefano...
Based on an original dataset linking patent data and biographical information for a large sample of US immigrant inventors with Indian names and surnames, specialized in ICT technologies, we...
View ArticleFinancing Ventures -- by Jeremy Greenwood, Pengfei Han, Juan M. Sanchez
The relationship between venture capital and growth is examined using an endogenous growth model incorporating dynamic contracts between entrepreneurs and venture capitalists. At each stage of...
View ArticleGranular Comparative Advantage -- by Cecile Gaubert, Oleg Itskhoki
Large firms play a pivotal role in international trade, shaping the export patterns of countries. We propose and quantify a granular multi-sector model of trade, which combines fundamental comparative...
View ArticleA Theory of Multihoming in Rideshare Competition -- by Kevin A. Bryan, Joshua...
We examine competition amongst ridesharing platforms where firms compete by choosing both the price of rides and the extent of idleness. Idleness means drivers who are compensated without picking up...
View ArticleReimbursement Rates for Primary Care Services: Evidence of Spillover Effects...
We study spillover effects of the largest ever increase in Medicaid primary care reimbursement rates on behavioral health and healthcare outcomes; mental illness, substance use disorders, and tobacco...
View ArticleBehavioral Effects of Student Loan Repayment Plan Options on Borrowers'...
We study the effects of available student loan repayment plans on borrowers' career choices. By removing the risk of loan default, income driven repayment (IDR) plans make higher-paying but riskier...
View ArticleFinancial Fraud among Older Americans: Evidence and Implications -- by...
The consequences of poor financial capability at older ages are serious and include making mistakes with credit, spending retirement assets too quickly, and being defrauded by financial predators....
View ArticleViolence while in Utero: The Impact of Assaults During Pregnancy on Birth...
Causal evidence of the effects of violent crime on its victims is sparse. Yet such evidence is needed to determine the social cost of crime and to evaluate the cost-effectiveness of policy...
View ArticleIQ from IP: Simplifying Search in Portfolio Choice -- by Huaizhi Chen, Lauren...
Using a novel database that tracks web traffic on the SEC's EDGAR servers between 2004 and 2015, we show that mutual fund managers gather information on a very particular subset of firms and insiders,...
View ArticleHow Costly Are Markups? -- by Chris Edmond, Virgiliu Midrigan, Daniel Yi Xu
We study the welfare costs of markups in a dynamic model with heterogeneous firms and endogenously variable markups. We find that the welfare costs of markups are large. We decompose the costs of...
View ArticleTax Compliance and Enforcement -- by Joel Slemrod
This paper reviews recent economic research in tax compliance and enforcement. After briefly laying out the economics of tax evasion, it focuses on recent empirical contributions. It first discusses...
View ArticleNarratives, Imperatives, and Moral Reasoning -- by Roland Benabou, Armin...
By downplaying externalities, magnifying the cost of moral behavior, or suggesting not being pivotal, exculpatory narratives can allow individuals to maintain a positive image when in fact acting in a...
View ArticleStructural Behavioral Economics -- by Stefano DellaVigna
What is the role of structural estimation in behavioral economics? I discuss advantages, and limitations, of the work in Structural Behavioral Economics. I also cover common modeling choices and how to...
View ArticleDetecting Urban Markets with Satellite Imagery: An Application to India -- by...
This paper proposes a methodology for defining urban markets based on economic activity detected by satellite imagery. We use nighttime lights data, whose use in economics is increasingly common, to...
View ArticleCommon Values, Unobserved Heterogeneity, and Endogenous Entry in U.S....
An oil lease auction is the classic example motivating a common values model. However, formal testing for common values has been hindered by unobserved auction-level heterogeneity, which is likely to...
View ArticleHow Do Firms Build Market Share? -- by Doireann Fitzgerald, Anthony Priolo
The question of how firms build market share matters for firm dynamics, business cycles, international trade, and industrial organization. Using Nielsen Retail Scanner data for the United States, we...
View ArticleSome Facts of High-Tech Patenting -- by Michael Webb, Nick Short, Nicholas...
Patenting in software, cloud computing, and artificial intelligence has grown rapidly in recent years. Such patents are acquired primarily by large US technology firms such as IBM, Microsoft, Google,...
View ArticleBanks, Insider Connections, and Industrialization in New England: Evidence...
This paper studies the role of bank affiliations in mitigating frictions related to asymmetric information. The analysis focuses on Massachusetts, and tests whether firms with bank directors on their...
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