Accepted Papers

New

How Do People React to Income-Based Fines? Evidence from Speeding Tickets Discontinuities

26 June 2026

Martti Kaila

This paper studies the impact of income-based criminal punishments on crime. In Finland, speeding tickets become income-dependent if the driver’s speed exceeds the speeding limit by more than 20 km/h, leading to a substantial jump in the size of the speeding ticket. Contrary to predictions of a traditional Becker model, individuals do not bunch below the fine hike.

New

College, cognitive ability, and socioeconomic disadvantage: policy lessons from the UK in 1960-2004

26 June 2026

Andrea Ichino, Aldo Rustichini, and Giulio Zanella

University access has significantly expanded in OECD countries, and further growth figures prominently in political agendas. We study possible consequences of historical and future expansions in a stochastic, general equilibrium Roy model where tertiary educational attainment is determined by cognitive ability and socioeconomic disadvantage.

New

Subjective Earnings Risk

26 June 2026

Andrew Caplin, Victoria Gregory, Eungik Lee, Søren Leth-Petersen, and Johan Sæverud

We introduce a survey instrument to measure earnings risk allowing for the possibility of quitting or being fired from the current job. We find these transitions to be the key drivers of subjective risk. A link with administrative data provides multiple credibility checks and reveals that subjective earnings risk varies systematically across the population.

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.

The Review of Economic Studies Follow

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

Under Smooth Diagnostic Expectations overreaction increases smoothly with uncertainty, providing a micro-foundation for key properties of survey data and the business cycle.

New paper by @Francesco_Bia, @CosminIlut, and @hpfilter

https://www.restud.com/smooth-diagnostic-expectations/

#REStud
#EconX

Reply on Twitter 2077409366924263892 Retweet on Twitter 2077409366924263892 7 Like on Twitter 2077409366924263892 40 Twitter 2077409366924263892

New paper by Kwak

https://www.restud.com/when-is-separate-sales-optimal/

#REStud
#EconX
#EconTwitter

Reply on Twitter 2077377391932875126 Retweet on Twitter 2077377391932875126 Like on Twitter 2077377391932875126 14 Twitter 2077377391932875126

New paper by Kaila:

https://www.restud.com/how-do-people-react-to-income-based-fines-evidence-from-speeding-tickets-discontinuities/

#REStud
#EconX
#EconTwitter

Reply on Twitter 2077334277813940432 Retweet on Twitter 2077334277813940432 5 Like on Twitter 2077334277813940432 20 Twitter 2077334277813940432

The UK’s post-1963 Robbins Report university boom brought in less able students from advantaged backgrounds. Future expansions should target talented students facing socioeconomic barriers.

New paper by Ichino, Rustichini, and @giulio_zanella:

https://www.restud.com/college-cognitive-ability-and-socioeconomic-disadvantage-policy-lessons-from-the-uk-in-1960-2004/

#REStud

Reply on Twitter 2077006451751432518 Retweet on Twitter 2077006451751432518 5 Like on Twitter 2077006451751432518 33 Twitter 2077006451751432518

How Do People React to Income-Based Fines? Evidence from Speeding Tickets Discontinuities

College, cognitive ability, and socioeconomic disadvantage: policy lessons from the UK in 1960-2004

Subjective Earnings Risk

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

Follow us