Rational Inattention, Competitive Supply, and Psychometrics -- by Andrew...
Costs of attention, while central to choice behavior, have proven hard to measure. We introduce a simple method of recovering them from choice data. Our recovery method rests on the observation that...
View ArticleFake News and Advertising on Social Media: A Study of the Anti-Vaccination...
Online sources sometimes publish information that is false or intentionally misleading. We study the role of social networks and advertising on social networks in the dissemination of false news...
View ArticleMacroeconomic Effects of China's Financial Policies -- by Kaiji Chen, Tao Zha
The Chinese economy has undergone three major phases: the 1978-1997 period marked as the SOE-led economy, the 1998-2015 phase as the investment-driven economy, and the new normal economy since 2016....
View ArticleAn Heterogeneous-Agent New-Monetarist Model with an Application to...
We develop a New Monetarist model with expenditure and unemployment risks that generates equilibria with non-degenerate distribution of money holdings. Distributional effects can overturn key insights...
View ArticleThe Crucial Role of International Trade in Adaptation to Climate Change -- by...
Climate change effects on agricultural yields will be uneven over the world with a few countries, mostly in high latitudes, that may experience gains, while most will see average yield decrease. This...
View ArticleMobility and Congestion in Urban India -- by Prottoy A. Akbar, Victor...
We develop a methodology to estimate robust city level vehicular mobility indices, and apply it to 154 Indian cities using 22 million counterfactual trips measured by a web mapping service. There is...
View ArticleWill Brexit Age Well? Cohorts, Seasoning and the Age-Leave Gradient, Past,...
In the UK's 2016 referendum on EU membership, young voters were more likely than their elders to vote Remain. Applying new methods to a half century of data, we show that this pattern reflects both...
View ArticleMicroeconometric Models of Consumer Demand -- by Jean-Pierre H. Dube
A long literature has developed econometric methods for estimating individual-consumer-level demand systems that accommodate corner solutions. The increasing access to transaction-level customer...
View ArticleFloating Rate Money? The Stability Premium in Treasury Floating Rate Notes --...
We identify a significant premium in the prices of Treasury floating rate notes (FRNs) relative to both Treasury bills and notes. This premium is directly related to the near-constant nature of FRN...
View ArticleOn the Informativeness of Descriptive Statistics for Structural Estimates --...
Researchers often present treatment-control differences or other descriptive statistics alongside structural estimates that answer policy or counterfactual questions of interest. We ask to what extent...
View ArticleConsumer Misinformation and the Brand Premium: A Private Label Blind Taste...
We run in-store blind taste tests with a retailer's private label food brands and the leading national brand counterparts in three large CPG categories. In a survey administered during the taste test,...
View ArticleThe Big Con - Reassessing the "Great" Recession and its...
Most economists differ, not on the causes of the Great Recession, but on their relative importance. They concur, though, on the basic problem, namely human, not market failure. This study applies the...
View ArticleDo Household Finances Constrain Unconventional Fiscal Policy? -- by Scott R....
When the zero lower bound on nominal interest rate binds, monetary policy makers may lack traditional tools to stimulate aggregate demand. We investigate whether "unconventional" fiscal policy, in the...
View ArticleMay the Force be With You: Investor Power and Company Valuations -- by Thomas...
This paper examines the effect of investor power in a model of staged equity financing. It shows how the usual effect where market power reduces valuations can be reversed in later rounds. Once they...
View ArticleIdentifying Price Informativeness -- by Eduardo Davila, Cecilia Parlatore
We show that outcomes (parameter estimates and R-squareds) of regressions of prices on fundamentals allow us to recover exact measures of the ability of asset prices to aggregate dispersed information....
View ArticleChild Access Prevention Laws and Juvenile Firearm-Related Homicides -- by D....
Debate over safe-storage gun regulations has captured public attention in the aftermath of several high-profile shootings committed by minors. Whether these laws actually decrease youth gun violence,...
View ArticleSex, Drugs, and Baby Booms: Can Behavior Overcome Biology? -- by Michele...
We study the behavioral changes due to marijuana consumption on fertility and its key mechanisms, as opposed to physiological changes. We can employ several large proprietary data sets, including the...
View ArticlePrivate Equity Indices Based on Secondary Market Transactions -- by Brian...
Measuring the performance of private equity investments (buyout and venture) has historically only been possible over long horizons because the IRR on a fund is only observable following the fund's...
View ArticleInternational Yield Curves and Currency Puzzles -- by Mikhail Chernov, Drew...
The depreciation rate is often computed as the ratio of foreign and domestic pricing kernels. Using bond prices alone to estimate these kernels leads to currency puzzles: the inability of models to...
View ArticleTeacher Expectations Matter -- by Nicholas W. Papageorge, Seth Gershenson,...
We develop and estimate a joint model of the education and teacher-expectation production functions that identifies both the distribution of biases in teacher expectations and the impact of those...
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