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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.

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Evaluating the accuracy of counterfactuals: Heterogeneous survival expectations in a life cycle model

4 September 2023

Jochem de Bresser

This paper shows that individual-level heterogeneity in survival expectations derived from subjective survey information improves the out-of-sample predictions of a dynamic model of retirement and saving. We consider three approaches to modelling survival: life tables, average subjective expectations and individual-specific estimates based on reported survival probabilities.

Fixed Effects and the Generalized Mundlak Estimator

4 September 2023

Dmitry Arkhangelsky and Guido Imbens

We develop a new approach for estimating average treatment effects in observational studies with unobserved group-level heterogeneity. We consider a general model with group-level unconfoundedness and provide conditions under which aggregate balancing statistics – group-level averages of functions of treatments and covariates – are sufficient to eliminate differences between groups.

Market Power in Coal Shipping and Implications for U.S. Climate Policy

4 September 2023

Louis Preonas

Economists have widely endorsed pricing CO2 emissions to internalize climate change-related externalities. Doing so would significantly affect coal, the most carbon-intensive energy source. However, U.S. coal markets exhibit an additional distortion: the railroads that transport coal to power plants can exert market power. This paper estimates how coal-by-rail markups respond to changes in coal demand. I identify markups in a major intermediate goods market using both reduced-form and structural methods.

Minimum Wage Employment Effects and Labor Market Concentration

4 September 2023

José Azar, Emiliano Huet-Vaughn, Ioana Marinescu, Bledi Taska, and Till von Wachter

This paper shows that more highly concentrated labor markets experience more positive employment effects of the minimum wage. In the most concentrated labor markets, employment rises following a minimum wage increase. The paper establishes its main findings studying the effects of local minimum wage increases on a key low-wage retail sector, and using data on labor market concentration that covers the entirety of the United States with fine spatial variation at the occupation level.

Discrimination in Hiring: Evidence from Retail Sales

28 August 2023

Alan M. Benson, Simon Board, and Moritz Meyer-ter-vehn

We propose a simple model of racial bias in hiring that encompasses three major theories: taste-based discrimination, screening discrimination, and complementary production. We derive a test that can distinguish these theories based on the mean and variance of workers’ productivity under managers of different pairs of races. We apply this test to study discrimination at a major U.S. retailer using data from 48,755 newly-hired commission-based salespeople.

Negative Nominal Interest Rates and the Bank Lending Channel

21 August 2023

Gauti B. Eggertsson, Ragnar E. Juelsrud, Lawrence H. Summers, and Ella Getz Wold

We investigate the bank lending channel of negative nominal policy rates from an empirical and theoretical perspective. For the empirical results we rely on Swedish data, including daily banklevel lending rates. We find that retail household deposit rates are subject to a lower bound (DLB).

The Brexit Vote, Productivity Growth and Macroeconomic Adjustments in the United Kingdom

21 August 2023

Ben Broadbent, Federico Di Pace, Thomas Drechsel, Richard Harrison, and Silvana Tenreyro

The UK economy experienced significant macroeconomic adjustments following the 2016 referendum on its withdrawal from the European Union. To understand these adjustments, this paper presents empirical facts using novel UK macroeconomic data and estimates a small open economy model with tradable and non-tradable sectors.

Taxes and Growth: New Narrative Evidence from Interwar Britain

15 August 2023

James Cloyne, Nicholas Dimsdale, and Natacha Postel-Vinay

The impact of fiscal policy on economic activity is still a matter of great debate. And, ever since Keynes first commented on it, interwar Britain, 1918-1939, has remained a particularly interesting and contentious case — not least because of its high debt environment and turbulent business cycle. This debate has often focused on the effects of government spending, but little is known about the effects of tax changes.

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Exciting news: Dávid Nagy, CREI, has joined the Editorial Board of The Review of Economic Studies. His deep knowledge will help guide the journal’s editorial process.
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The Review was founded in 1933 by a group of Economists from leading UK and US departments. It is now managed by European-based economists.

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