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.

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Capital Unemployment

Pablo Ottonello

This paper studies the unemployment of physical capital—defined as idle units searching to be traded—and its macroeconomic implications. I provide evidence documenting that capital unemployment is large, volatile, and increases during economic downturns. I construct a capital-accumulation model that explains these patterns, with trading frictions in capital markets, which give rise to equilibrium capital unemployment, and financial shocks, which lead to large fluctuations in trading probabilities and capital unemployment.

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An optimal test for strategic interaction in network formation games

Andrin Pelican and Bryan S. Graham

Consider a setting where N players, partitioned into K observable types, form a directed network. Agents’ preferences over the form of the network consist of an arbitrary network benefit function (e.g., agents may have preferences over their network centrality) and a private, or dyadic, component which is additively separable in own links. This latter component allows for unobserved heterogeneity in the costs of sending and receiving links across agents (respectively out- and in- degree heterogeneity) as well as homophily/heterophily across the K types of agents.

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Optimal Age-based Policies for Pandemics: An Economic Analysis of Covid-19 and Beyond

Luiz Brotherhood, Philipp Kircher, Cezar Santos, and Michèle Tertilt

This paper investigates the importance of the age composition for pandemic policy design. To do so, it introduces an economic framework with age heterogeneity, individual choice, and incomplete information, emphasizing the value of testing. Calibrating the model to the US Covid-19 pandemic reveals an 80% reduction in the death toll due to voluntary actions and the lockdown implemented in the US.

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How You Pay Drives What You Choose: Mental Accounting in Health Insurance Plan Choice

Jonathan Gruber, Mengyun Lin, Haoming Liu, and Junjian Yi

We document that the source of funds for paying health insurance premiums has a dramatic impact on plan choices. We focus on the MediSave program in Singapore, a medical savings account that is used to pay out-of-pocket medical spending. Residents can also pay their health insurance premiums with cash or MediSave funds, but are subject to limits that vary by age and over time.

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New paper by @kateorkin, Garlick, @mahreenmahmud, Sedlmayr, @jhaushofer, & Dercon

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How do firms set wages when they can legally wage discriminate? Evidence from minimum wage reform shows firms raise pay for unbound workers, reflecting pay equity considerations.

New paper by @giulia_giupponi & @s_machin_

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Across Europe, even public firms have concentrated ownership, with big cross-country variation. Equity frictions matter more than debt frictions for output and wealth inequality.

New paper by @Ale_M_Peter

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Services like software & R&D are reshaping production networks. Using a novel approach to measure sectoral prices, @nichiflu, Gorry & @C_vom_lehn show this shift can sustain economic growth.

https://www.restud.com/structural-change-in-production-networks-and-economic-growth/

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