Accepted Papers

The Review of Economic Studies is one of the most highly respected academic journals in the field of economics. It is known for publishing leading research in all areas of economics, from microeconomics to macroeconomics. The journal is published by the Oxford University Press.

View published articles on Oxford University Press

New

A Robust Test for Weak Instruments for 2SLS with Multiple Endogenous Regressors

Daniel J. Lewis and Karel Mertens

We develop a test for instrument strength based on the bias of two-stage least squares (2SLS) that (1) generalizes the tests of Stock and Yogo (2005) and Sanderson and Windmeijer (2016) to be robust to heteroskedasticity and autocorrelation, and (2) extends the Montiel Olea and Pflueger (2013) robust test for models with a single endogenous regressor to multiple endogenous regressors.

New

Firm Quality Dynamics and the Slippery Slope of Credit Intervention

Wenhao Li and Ye Li

A salient trend in crisis intervention has emerged in recent decades: government and central banks have offered funding directly to nonfinancial firms, bypassing banks and other credit intermediaries. We analyze the long-term consequences of such policies by focusing on firm quality dynamics. In a laissez-faire economy, firms with high productivity are more likely to survive crises than those with low productivity.

New

Choice and Opportunity Costs

Paola Manzini, Marco Mariotti, and Levent Ülkü

We define the (physical) opportunity cost of a choice x as the alternative that would be chosen if x were not available, and the opportunity cost of any unchosen alternative as x itself. The agent has preferences over pairs consisting of alternatives and their opportunity costs. Because costs affect choice and vice-versa, choice results from an intrapersonal equilibrium rather than from simple maximisation.

New

Lifecycle Wages and Human Capital Investments: Selection and Missing Data

Laurent Gobillon, Thierry Magnac, and Sébastien Roux

We derive wage equations with individual specific coefficients from a structural model of human capital investment over the life cycle. This model allows for interruptions in labour market participation and deals with missing data and attrition problems. We propose a new framework that deals with missingness at random and is based on factor decompositions that allow for flexible control of selection.

New

Diversification, Market Entry, and the Global Internet Backbone

El Hadi Caoui and Andrew Steck

In many industries, buyers diversify their supplier base to manage supplier disruption risk. We investigate the importance of such diversification as a determinant of demand and supplier entry in the context of the internet backbone, the worldwide network of undersea fiber-optic cables that underpins the internet. We specify a model of international bandwidth demand and cable operators’ dynamic entry and supply choices. The model is estimated using novel data on cross-border data flows, prices, cable characteristics, and disruptions.

New

Demand Stimulus as Social Policy

Alan J. Auerbach, Yuriy Gorodnichenko, and Daniel Murphy

We exploit a panel of city-level data with rich demographic information to estimate the distributional effects of Department of Defense spending and its effects on a range of social outcomes. The income and employment generated by defense spending accrue predominantly to households without a bachelor’s degree. These households as well as Black and Hispanic households tend to disproportionately benefit from this spending.

Follow us

The Review of Economic Studies Follow

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

RevEconStudies

New paper by @pilossopher, @davide_melc & Lewis estimates the distribution of spending responses to stimulus payments. MPCs are heterogeneous, with observables explaining 8% of the variation, highlighting the crucial role of latent heterogeneity

https://www.restud.com/latent-heterogeneity-in-the-marginal-propensity-to-consume/
#REStud

Reply on Twitter 1996503790581907923 Retweet on Twitter 1996503790581907923 20 Like on Twitter 1996503790581907923 79 Twitter 1996503790581907923

New paper, "Firm Quality Dynamics and the Slippery Slope of Credit Intervention" by @wenhaoli111 & Li shows that direct government and central bank lending can distort firm quality and fuel future interventions.

https://www.restud.com/firm-quality-dynamics-and-the-slippery-slope-of-credit-intervention/

#EconTwitter #REStud

Reply on Twitter 1994082299873231192 Retweet on Twitter 1994082299873231192 6 Like on Twitter 1994082299873231192 24 Twitter 1994082299873231192

"We show how opportunity costs, a core economic concept, can explain seemingly non-rational behaviour (like cyclical choices) within a preference-maximising framework."

New paper by @PaolaManzini, @MarcoMa75263273 & @ulkulev

#EconTwitter #REStud

https://www.restud.com/choice-and-opportunity-costs/

Reply on Twitter 1993605369310969935 Retweet on Twitter 1993605369310969935 19 Like on Twitter 1993605369310969935 59 Twitter 1993605369310969935

"Supply disruptions shapes the global internet backbone: new paper shows diversification drives cable entry & surplus, but markets may underprovide diversity."

New Paper by @CaouiHadi & Steck:

https://www.restud.com/diversification-market-entry-and-the-global-internet-backbone/

#EconTwitter #REStud

Reply on Twitter 1985707065827082266 Retweet on Twitter 1985707065827082266 14 Like on Twitter 1985707065827082266 34 Twitter 1985707065827082266
Load More