Measurement Error in Imputed Consumption -- by Scott R. Baker, Lorenz Kueng,...
Because of limitations in survey-based measures of household consumption, a growing literature uses an alternative measure of consumer expenditures commonly referred to as "imputed consumption." This...
View ArticleWhy Does Credit Growth Crowd Out Real Economic Growth? -- by Stephen G....
We examine the negative relationship between the rate of growth in credit and the rate of growth in output per worker. Using a panel of 20 countries over 25 years, we establish that there is a robust...
View ArticleSkill of the Immigrants and Vote of the Natives: Immigration and Nationalism...
In this paper we document the impact of immigration at the regional level on Europeans' political preferences as expressed by voting behavior in parliamentary or presidential elections between 2007 and...
View ArticleCommodity Currencies and Monetary Policy -- by Michael B. Devereux, Gregor W....
Countries that specialize in commodity exports often exhibit a correlation between the relevant commodity price and the value of their currency. We explore a natural but little-studied explanation for...
View ArticleInformation: Hard and Soft -- by Jose Maria Liberti, Mitchell A. Petersen
Information is a fundamental component of all financial transactions and markets, but it can arrive in multiple forms. We define what is meant by hard and soft information and describe the relative...
View ArticleThe Economic Effect of Immigration Policies: Analyzing and Simulating the...
In this paper we analyze the economic effects of changing immigration policies in a realistic institutional set-up, using a search model calibrated to the migrant flows between the US and the rest of...
View ArticleHistory Remembered: Optimal Sovereign Default on Domestic and External Debt...
Infrequent but turbulent overt sovereign defaults on domestic creditors are a "forgotten history" in Macroeconomics. We propose a heterogeneous-agents model in which the government chooses optimal debt...
View ArticleLoss Attitudes in the U.S. Population: Evidence from Dynamically Optimized...
We introduce DOSE - Dynamically Optimized Sequential Experimentation - and use it to estimate individual-level loss aversion in a representative sample of the U.S. population (N=2,000). DOSE...
View ArticleInnovation, Knowledge Diffusion, and Globalization -- by Nelson Lind, Natalia...
We review a recent body of theoretical literature that links the creation and diffusion of knowledge and technology to openness. We analyze two channels through which the spread of new ideas occurs:...
View ArticleFiscal and Education Spillovers from Charter School Expansion -- by Matthew...
The fiscal and educational consequences of charter expansion for non-charter students are central issues in the debate over charter schools. Do charter schools drain resources and high-achieving peers...
View ArticleThe Consequences of Academic Match between Students and Colleges -- by...
We consider the effects of student ability, college quality, and the interaction between the two on academic outcomes and earnings using data on two cohorts of college enrollees. Student ability and...
View ArticleWhen does Product Liability Risk Chill Innovation? Evidence from Medical...
Liability laws designed to compensate for harms caused by defective products may also affect innovation. We examine this issue by exploiting a major quasi-exogenous increase in liability risk faced by...
View ArticleThe Pivotal Role of Fairness: Which Consumers Like Annuities? -- by Suzanne...
Life annuities can be a valuable component of the decumulation stage of wealth during retirement. While economists argue that most retirees should annuitize, actual demand in the marketplace is low. We...
View ArticleDiverging Trends in National and Local Concentration -- by Esteban...
The views expressed herein are those of the authors and do not necessarily represent the views of the Federal Reserve Bank of Richmond or the Federal Reserve System. We thank Eric LaRose and Sara Ho...
View ArticleSTEM Careers and Technological Change -- by David J. Deming, Kadeem L. Noray
Science, Technology, Engineering, and Math (STEM) jobs are a key contributor to economic growth and national competitiveness. Yet STEM workers are perceived to be in short supply. This paper shows that...
View ArticleEconomists (and Economics) in Tech Companies -- by Susan Athey, Michael Luca
As technology platforms have created new markets and new ways of acquiring information, economists have come to play an increasingly central role in tech companies - tackling problems such as platform...
View ArticleGlobalization, Government Popularity, and the Great Skill Divide -- by Cevat...
How does international trade affect the popularity of governments and leaders? We provide the first large-scale, systematic evidence that the divide between skilled and unskilled workers worldwide is...
View ArticleWho Feels the Nudge? Knowledge, Self-Awareness and Retirement Savings...
Using a financial literacy survey of Swedish pension investors matched to actual retirement savings decisions, we argue that respondents can be broken into three groups: those who are financially...
View ArticleAre Two Bads Better Than One? A Model of Sensory Limitations -- by Lars J....
We present a theoretical framework which explains the optimizing behavior of individuals who are exposed to many latent stimuli but prone to experience only the most salient one. We show that...
View ArticleUnlocking Amenities: Estimating Public-Good Complementarity -- by David...
Our results indicate that improving safety near parks can turn them from public bads to goods. Ignoring complementarities may lead to i) undervaluing the potential value of public goods; ii)...
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