Accepted Papers

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.

Demand and Welfare Analysis in Discrete Choice Models with Social Interactions

27 April 2023

Debopam Bhattacharya, Pascaline Dupas, and Shin Kanaya

Many real-life settings of individual choice involve social interactions, causing targeted policies to have spillover effects. This paper develops novel empirical tools for analyzing demand and welfare effects of policy interventions in binary choice settings with social interactions.

The Review of Economic Studies Follow

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

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 15 Like on Twitter 1993605369310969935 53 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

"Serfdom in early modern Russia wasn’t inevitable—it was driven by landholding soldiers on the southern frontier. To defend against nomads, the state tied peasants to land, cementing coercive labor."

New paper by @andreamatranga & @Natkhov:

https://www.restud.com/all-along-the-watchtower-military-landholders-and-serfdom-consolidation-in-early-modern-russia/
#econtwitter

Reply on Twitter 1985349137366499478 Retweet on Twitter 1985349137366499478 10 Like on Twitter 1985349137366499478 35 Twitter 1985349137366499478

The Effect of Wealth on Worker Productivity

Selfish Corporations

Deadly Debt Crises: COVID-19 in Emerging Markets

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

Bilateral Trade Imbalances

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

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

Demand and Welfare Analysis in Discrete Choice Models with Social Interactions

Follow us