Accepted Papers

How Exporters Grow

3 July 2023

Doireann Fitzgerald, Stefanie Haller, and Yaniv Yedid-Levi

We use customs data for Irish firms to show that in successful episodes of export market entry, there are statistically and economically significant post-entry dynamics of quantities, but not of markups. To match these moments, we structurally estimate a model where firms can invest in future customer base through two channels: by selling more today, and by spending on marketing and advertising.

Trust in Risk Sharing: A Double-Edged Sword

3 July 2023

Harold L. Cole, Dirk Krueger, George J. Mailath, and Yena Park

We analyze efficient risk-sharing arrangements when the value from deviating is determined endogenously by another risk sharing arrangement. Coalitions form to insure against idiosyncratic income risk. Self-enforcing contracts for both the original coalition and any coalition formed (joined) after deviations rely on a belief in future cooperation which we term “trust”.

Dynamic Opinion Aggregation: Long-Run Stability and Disagreement

3 July 2023

Simone Cerreia-Vioglio, Roberto Corrao, and Giacomo Lanzani

This paper proposes a model of non-Bayesian social learning in networks that accounts for heuristics and biases in opinion aggregation. The updating rules are represented by nonlinear opinion aggregators from which we extract two extreme networks capturing strong and weak links.

When Less is More: Experimental Evidence on Information Delivery During India’s Demonetization

2 July 2023

Abhijit Banerjee, Emily Breza, Arun Chandrasekhar, and Benjamin Golub

In disseminating information, policymakers face a choice between broadcasting to everyone and informing a small number of “seeds” who then spread the message. While broadcasting maximizes the initial reach of messages, we offer theoretical and experimental evidence that it need not be the best strategy.

How Responsive are Wages to Firm-Specific Changes in Labor Demand? Evidence from Idiosyncratic Export Demand Shocks

2 July 2023

Andrew Garin and Filipe Silvério

Do firms adjust wages in response to changes in their own demand level, or to changes in competitive pressure from rival employers? We study how exporters adjust wages in response to unexpected product demand shocks during the 2008–2009 Great Recession. Using rich data on Portuguese firms’ pre-recession export shipments, we measure firm-level shocks to export demand during the Recession.

Experimentation in Endogenous Organizations

22 June 2023

Germán Gieczewski and Svetlana Kosterina

We study policy experimentation in organizations with endogenous membership. An organization decides when to stop a policy experiment based on its results. As information arrives, agents update their beliefs, and enter or leave the organization based on their expected flow payoffs.

Changes in Social Network Structure in Response to Exposure to Formal Credit Markets

22 June 2023

Abhijit Banerjee, Emily Breza, Arun G. Chandrasekhar, Esther Duflo, Matthew O. Jackson, and Cynthia Kinnan

We show that the entry of formal financial institutions can have far-reaching and long-lasting impacts on informal lending and social networks more generally. We first study the introduction of microfinance in 75 villages in Karnataka, India, 43 of which were exposed to microfinance. Using difference-in-differences, we show that networks shrank more in exposed villages.

Memory and Markets

22 June 2023

Sergey Kovbasyuk and Giancarlo Spagnolo

In many environments, including credit and online markets, records about participants are collected, published, and erased after some time. We study the effects of erasing past records in a dynamic market where the quality of sellers follows a Markov process, and buyers leave feedback about sellers to an information intermediary.

The Review of Economic Studies Follow

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

How should regulators target their limit enforcement budgets? We quantify the benefits of linked regulation, where regulators dynamically target plants co-owned with other plants with poor compliance records.

New paper by @leistenecon & Vreugdenhil

https://www.restud.com/dynamic-regulation-with-firm-linkages-evidence-from-texas/

Reply on Twitter 2016452332456718336 Retweet on Twitter 2016452332456718336 2 Like on Twitter 2016452332456718336 23 Twitter 2016452332456718336

How do currencies become international?

Bahaj & Reis(@R2Rsquared) show that PBoC swap lines boosted RMB use abroad, revealing a policy lever to jumpstart a currency’s international status.

https://www.restud.com/jumpstarting-an-international-currency/

#REStud
#EconTwitter
#EconX

Reply on Twitter 2013580277319147657 Retweet on Twitter 2013580277319147657 16 Like on Twitter 2013580277319147657 66 Twitter 2013580277319147657

Editorial update:
Gabriel Chodorow-Reich @gchodorowreich (Harvard University) has stepped down as a Foreign Editor of The Review of Economic Studies. We are grateful to Gabe for his excellent service and contributions to the journal and the REStud Tour.

Reply on Twitter 2013275125601177924 Retweet on Twitter 2013275125601177924 1 Like on Twitter 2013275125601177924 35 Twitter 2013275125601177924

"Capital flowed to high-inflation countries during recent surge, worsening the output-inflation tradeoff. Reversing flows would have reduced volatility & tightening needs."

New paper by @LouphouC & Bengui:

https://www.restud.com/destabilizing-capital-flows-amid-global-inflation/

#REStud
#EconX
#EconTwitter

Reply on Twitter 2013190394188615990 Retweet on Twitter 2013190394188615990 12 Like on Twitter 2013190394188615990 37 Twitter 2013190394188615990

How Exporters Grow

Trust in Risk Sharing: A Double-Edged Sword

Dynamic Opinion Aggregation: Long-Run Stability and Disagreement

When Less is More: Experimental Evidence on Information Delivery During India’s Demonetization

How Responsive are Wages to Firm-Specific Changes in Labor Demand? Evidence from Idiosyncratic Export Demand Shocks

Experimentation in Endogenous Organizations

Changes in Social Network Structure in Response to Exposure to Formal Credit Markets

Memory and Markets

Follow us