Accepted Papers

A More Credible Approach to Parallel Trends

5 January 2023

Ashesh Rambachan and Jonathan Roth

This paper proposes tools for robust inference in difference-in-differences and event- study designs where the parallel trends assumption may be violated.

Bond Premium Cyclicality and Liquidity Traps

4 January 2023

Nicolas Caramp and Sanjay R. Singh

Safe asset shortages can expose an economy to liquidity traps. The nature of these traps is determined by the cyclicality of the bond premium. A counter-cyclical bond premium opens the possibility of expectations-driven liquidity traps in which small issuances of government debt crowd out private debt and reduce output.

Testing the Production Approach to Markup Estimation

4 January 2023

Devesh Raval

Under the production approach to markup estimation, any flexible input should recover the markup. I test this implication using manufacturing datasets from Chile, Colombia, India, Indonesia, the US, and Southern Europe, as well as store-level data from a major US retailer, and overwhelmingly reject that markups estimated using labor and materials have the same distribution.

A Welfare Analysis of Occupational Licensing in U.S. States

21 December 2022

Morris M. Kleiner and Evan J. Soltas

We assess the welfare consequences of occupational licensing for workers and consumers. We estimate a model of labor market equilibrium in which licensing restricts labor supply but also affects labor demand via worker quality and selection.

A Network Solution to Robust Implementation: the Case of Identical but Unknown Distributions

19 December 2022

Mariann Ollár and Antonio Penta

We study robust mechanism design in environments in which agents commonly believe that others’ types are identically distributed, but we do not assume that the actual distribution is common knowledge, nor that it is known to the designer.

More than a Penny’s Worth: Left-Digit Bias and Firm Pricing

13 December 2022

Avner Strulov-Shlain, University of Chicago, Booth School of Business

Firms arguably price at 99-ending prices because of left-digit bias—the tendency of consumers to perceive a $4.99 as much lower than a $5.00. Analysis of retail scanner data on 3500 products sold by 25 US chains provides robust support for this explanation.

Unemployment Insurance in Macroeconomic Stabilization

12 December 2022

Rohan Kekre, Chicago Booth and NBER

I study unemployment insurance (UI) in general equilibrium with incomplete markets, search frictions, and nominal rigidities.

Stratification Trees for Adaptive Randomization in Randomized Controlled Trials

12 December 2022

Max Tabord-Meehan, University of Chicago

This paper proposes an adaptive randomization procedure for two-stage randomized controlled trials. The method uses data from a first-wave experiment in order to determine how to stratify in a second wave of the experiment, where the objective is to minimize the variance of an estimator for the average treatment effect (ATE).

The Review of Economic Studies Follow

The official account of the Review of Economic Studies, one of the world's top economics journals.

How should regulators target their limit enforcement budgets? We quantify the benefits of linked regulation, where regulators dynamically target plants co-owned with other plants with poor compliance records.

New paper by @leistenecon & Vreugdenhil

https://www.restud.com/dynamic-regulation-with-firm-linkages-evidence-from-texas/

Reply on Twitter 2016452332456718336 Retweet on Twitter 2016452332456718336 2 Like on Twitter 2016452332456718336 23 Twitter 2016452332456718336

How do currencies become international?

Bahaj & Reis(@R2Rsquared) show that PBoC swap lines boosted RMB use abroad, revealing a policy lever to jumpstart a currency’s international status.

https://www.restud.com/jumpstarting-an-international-currency/

#REStud
#EconTwitter
#EconX

Reply on Twitter 2013580277319147657 Retweet on Twitter 2013580277319147657 16 Like on Twitter 2013580277319147657 66 Twitter 2013580277319147657

Editorial update:
Gabriel Chodorow-Reich @gchodorowreich (Harvard University) has stepped down as a Foreign Editor of The Review of Economic Studies. We are grateful to Gabe for his excellent service and contributions to the journal and the REStud Tour.

Reply on Twitter 2013275125601177924 Retweet on Twitter 2013275125601177924 1 Like on Twitter 2013275125601177924 35 Twitter 2013275125601177924

"Capital flowed to high-inflation countries during recent surge, worsening the output-inflation tradeoff. Reversing flows would have reduced volatility & tightening needs."

New paper by @LouphouC & Bengui:

https://www.restud.com/destabilizing-capital-flows-amid-global-inflation/

#REStud
#EconX
#EconTwitter

Reply on Twitter 2013190394188615990 Retweet on Twitter 2013190394188615990 12 Like on Twitter 2013190394188615990 37 Twitter 2013190394188615990