Accepted Papers

The Slaughter of the Bison and Reversal of Fortunes on the Great Plains

24 May 2023

Donn. L. Feir, Rob Gillezeau, and Maggie E.C. Jones

In the late nineteenth century, the North American bison was brought to the brink of extinction in just over a decade. We demonstrate that the loss of the bison had immediate, negative consequences for the Native Americans who relied on them and ultimately resulted in a permanent reversal of fortunes. Once amongst the tallest people in the world, the generations of bison-reliant people born after the slaughter lost their entire height advantage.

The Effect of Wealth on Worker Productivity

24 May 2023

Jan Eeckhout and Alireza Sepahsalari

We propose a theory that analyzes how a workers’ asset holdings affect their job productivity. In a labor market with uninsurable risk, workers choose to direct their job search trading off productivity and wages against unemployment risk. Workers with low asset holdings have a precautionary job search motive, they direct their search to low productivity jobs because those offer a low risk at the cost of low productivity and a low wage.

Selfish Corporations

21 May 2023

Emanuele Colonnelli, Niels Joachim Gormsen, and Tim McQuade

We study how perceptions of corporate responsibility influence policy preferences and the effectiveness of corporate communication when agents have imperfect memory recall. Using a new large-scale survey of U.S. citizens on their support for corporate bailouts, we first establish that the public demands corporations to behave better within society, a sentiment we label “big business discontent.”

Deadly Debt Crises: COVID-19 in Emerging Markets

21 May 2023

Cristina Arellano, Yan Bai, and Gabriel Mihalache

Emerging markets have experienced large human and economic costs from COVID- 19, and their tight fiscal space has limited the support extended to their citizens. We study the impact of an epidemic on economic and health outcomes by integrating epidemiological dynamics into a sovereign default model.

Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data

3 May 2023

Andreas I. Mueller, Damian Osterwalder, Josef Zweimüller, and Andreas Kettemann

This paper explores the relationship between the duration of a vacancy and the starting wage of a new job, using linked data on vacancies, the posting establishments and the workers eventually filling the vacancies.

Bilateral Trade Imbalances

1 May 2023

Alejandro Cuñat and Robert Zymek

If sectoral trade flows obey structural gravity, countries’ bilateral trade imbalances are the result of macro trade imbalances, “triangular trade”, or pairwise asymmetric trade barriers. Using data for 40 major economies and the Rest of the World, we show that large and pervasive asymmetries in trade barriers are required to account for most of the observed variation in bilateral imbalances.

Optimal Long-Term Health Insurance Contracts: Characterization, Computation, and Welfare Effects

1 May 2023

Soheil Ghili, Benjamin Handel, Igal Hendel, and Michael Whinston

Reclassification risk is a major concern in health insurance where contracts are typically one year in length but health shocks often persist for much longer. While most health systems with private insurers pair short-run contracts with substantial pricing regulations to reduce reclassification risk, long-term contracts with one-sided insurer commitment have significant potential to reduce reclassification risk without the negative side effects of price regulation, such as adverse selection.

Mortgage Design and Slow Recoveries. The Role of Recourse and Default.

1 May 2023

Pedro Gete and Franco Zecchetto

We show that mortgage recourse systems, by discouraging default, magnify the impact of nominal rigidities. They cause deeper and more persistent recessions. This mechanism can account for up to 31% of the recovery gap during the Great Recession between the U.S., mostly a non-recourse economy, and Spain, a recourse economy.

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.@lindaawuu and coauthor study two estate tax reforms in Taiwan and find quick and asymmetric responses. Reported estates are more elastic to tax hikes than tax cuts. 👇

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*** Meet REStud North American 2025 Tourists! ***

The REStud North American Tour recognizes the most promising graduating doctoral students in economics and finance from European universities, and introduces them and their research to audiences in North America,

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"Sellers often choose sudden, unannounced price drops—unlike standard models with forward-looking, strategic buyers. We show why a seller would prefer this."

Recently accepted to #REStud, from Dilmé and Garrett:

https://www.restud.com/a-dynamic-theory-of-random-price-discounts/

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