Accepted Papers

The Economic Geography of Global Warming

2 April 2023

José-Luis Cruz and Esteban Rossi-Hansberg

Global warming is a worldwide and protracted phenomenon with heterogeneous local economic effects. We propose a dynamic economic assessment model of the world economy with high spatial resolution to assess its consequences.

Equilibrium Analysis in Behavioral One-Sector Growth Models

2 April 2023

Daron Acemoglu and Martin Kaae Jensen

Rich behavioral biases, mistakes and limits on rational decision-making are often thought to make equilibrium analysis much more intractable. We establish that this is not the case in the context of one-sector growth models such as Ramsey-Cass-Koopmans or Bewley-Aiyagari models.

Follow the Money

2 April 2023

Marco Grotteria

I study, both empirically and theoretically, the economic and financial consequences of corporate lobbying. Firms lobby politicians to increase their share of government contracts, but political competition creates firm-level risk, inflating their cost of capital and reducing their incentive to invest in research and development (R&D).

Security Design in Non-Exclusive Markets with Asymmetric Information

29 March 2023

Vladimir Asriyan and Victoria Vanasco

We study the problem of a seller (e.g., a bank) who is privately informed about the quality of her asset and wants to exploit gains from trade with uninformed buyers (e.g., investors) by issuing securities backed by her asset cash flows.

Financial Cycles with Heterogeneous Intermediaries

29 March 2023

Nuno Coimbra and Hélène Rey

We develop a dynamic macroeconomic model with heterogeneous financial intermediaries and endogenous entry. Time-varying endogenous macroeconomic risk arises from the risk-shifting behaviour of the cross-section of financial intermediaries.

House Price Dynamics, Optimal LTV Limits and the Liquidity Trap

29 March 2023

Andrea Ferrero, Richard Harrison, and Benjamin Nelson

This paper studies the optimal design of a macro-prudential instrument, a loan-to-value (LTV) limit, and its implications for monetary policy in a model with nominal rigidities and financial frictions.

Using Disasters to Estimate the Impact of Uncertainty

20 March 2023

Scott R Baker, Nicholas Bloom, and Stephen Terry

Uncertainty rises in recessions and falls in booms. But what is the causal relationship? We construct cross-country panel data on stock market returns to proxy for first- and second-moment shocks and instrument these with natural disasters, terrorist attacks, and political shocks.

Price Discrimination in International Airline Markets

20 March 2023

Gaurab Aryal, Charles Murry, and Jonathan W. Williams

We develop a model of inter-temporal and intra-temporal price discrimination by monopoly airlines to study the ability of different discriminatory pricing mechanisms to increase efficiency and the associated distributional implications.

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Cities surrounded by expensive farmland are denser and agricultural productivity growth has lowered urban density over time in France. Our multi-region structural change framework can explain it.

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🏠Transaction taxes don’t just cool housing—they reshape it. Same rate, different impact: investors buy more, households less. Result: lower ownership and welfare losses of 111% of tax revenue.

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Slum upgrading is a common policy to help residents, but it can delay redevelopment into formal neighborhoods. Evidence from the largest program highlights the tradeoff: central upgrading can entail long-run opportunity costs.

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The Economic Geography of Global Warming

Equilibrium Analysis in Behavioral One-Sector Growth Models

Follow the Money

Security Design in Non-Exclusive Markets with Asymmetric Information

Financial Cycles with Heterogeneous Intermediaries

House Price Dynamics, Optimal LTV Limits and the Liquidity Trap

Using Disasters to Estimate the Impact of Uncertainty

Price Discrimination in International Airline Markets

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