Accepted Papers

New

Optimal Policy Rules in HANK

22 June 2026

Alisdair McKay and Christian K. Wolf

We characterize optimal policy rules in a business-cycle model with nominal rigidities and heterogeneous households. The policymaker has access to two instruments: the short-term nominal rate, and lump-sum transfer payments. A policymaker with a traditional dual mandate that targets aggregates uses the same policy rule as is optimal in the textbook New Keynesian model.

New

Skill-Replacing Technology and Bottom-Half Inequality

22 June 2026

Oren Danieli

I propose a model of skill-replacing routine-biased technological change (SR-RBTC). In this model, technology substitutes for the use of skill in routine tasks, in contrast to standard RBTC models, which assume that technology replaces the workers themselves.

New

Competition in a spatially-differentiated product market with negotiated prices

15 June 2026

Walter Beckert, Howard Smith, and Yuya Takahashi

In many markets, buyers make discrete choices between differentiated products and negotiate prices that are specific to the choice. We develop for estimation a model for this class of markets which is consistent with non-cooperative models of bargaining between a buyer and competing sellers.

New

The Micro and Macro Dynamics of Capital Flows

15 June 2026

Felipe Saffie, Liliana Varela, and Kei-Mu Yi

We study empirically and theoretically the effects of international financial flows on resource allocation. Using the universe of firms in Hungary, we show that removing capital controls lowers firms’ cost of capital and increases household consumption, with the latter playing a dominant role.

New

Market Segmentation Through Information

15 June 2026

Matthew Elliott, Andrea Galeotti, Andrew Koh, and Wenhao Li

We explore the power that precise information about consumers’ preferences grants an intermediary in shaping competition. We think of an intermediary as an information designer who chooses what information to reveal to firms, which then compete à la Bertrand in a differentiated product market.

New

Customer Acquisition, Business Dynamism and Aggregate Growth

12 June 2026

Marek Ignaszak and Petr Sedláček

Business dynamism — the process of firm entry, growth and exit — lies at the heart of modern endogenous growth models. While productivity differences have traditionally been seen as the main driving forces of business dynamism, a growing body of evidence suggests that customer acquisition is at least as important. In light of this evidence, we propose a novel endogenous growth model in which innovating firms must first acquire customers to sell their products.

New

State Capacity as an Organizational Problem

12 June 2026

Nicola Mastrorocco and Edoardo Teso

We investigate how technologies that reduce the costs of monitoring by central authorities have shaped the historical transition from small patrimonial states to large bureaucratic organizations. Our analysis is based on a novel dataset that traces changes in the organizational structure and geographic presence of the U.S. federal government over the nineteenth century.

New

Competitive Advertising and Pricing

12 June 2026

Ilwoo Hwang, Kyungmin Kim, and Raphael Boleslavsky

We consider an oligopoly model in which each firm chooses not only its price but also its advertising strategy regarding how much, and what, product information to provide. To highlight firms’ strategic incentives, we impose no structural restrictions on feasible advertising content, so that each firm can disclose or conceal any information.

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Buyers often make choices between differentiated products and negotiate prices specific to the choice. This paper specifies a model for this setting and estimates it on transactions data for the UK brick market.

New paper by @howardwsmith, Beckert, and Takahashi

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🚨 NEW ECONOMICS JOURNAL 🚨

We are excited to announce the launch of The Review of Economic Studies: Insights, a new open-access journal in the REStud family.

Mission: publish concise, high-quality research on important questions across economics and economic policy.🧵1/13

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New paper by Saffie, Varela, and Yi

https://www.restud.com/the-micro-and-macro-dynamics-of-capital-flows/

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How does consumer data let platforms shape competition? Elliott, Galeotti, @andrewjkoh, and @Wenhao19921 show how platforms can use consumer data to segment markets for the benefit of firms or consumers.

https://www.restud.com/market-segmentation-through-information/

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Optimal Policy Rules in HANK

Skill-Replacing Technology and Bottom-Half Inequality

Competition in a spatially-differentiated product market with negotiated prices

The Micro and Macro Dynamics of Capital Flows

Market Segmentation Through Information

Customer Acquisition, Business Dynamism and Aggregate Growth

State Capacity as an Organizational Problem

Competitive Advertising and Pricing

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