Accepted Papers

The Lost Capital Asset Pricing Model

8 February 2023

Daniel Andrei, Julien Cujean, and Mungo Wilson

We provide a novel explanation for the empirical failure of the CAPM despite its widespread practical use. In a rational-expectations economy in which information is dispersed, variation in expected returns over time and across investors creates an informational gap between investors and the empiricist.

The Effects of Partial Employment Protection Reforms: Evidence from Italy

5 February 2023

Diego Daruich, Sabrina Di Addario, and Raffaele Saggio

We combine matched employer-employee data with firms’ financial records to study a 2001 Italian reform that lifted constraints on the employment of temporary contract workers while maintaining rigid employment protection regulations for employees hired under permanent contracts.

Regional Consumption Responses and the Aggregate Fiscal Multiplier

5 February 2023

Bill Dupor, Marios Karabarbounis, Marianna Kudlyak, and M. Saif Mehkari

We use regional variation in the American Recovery and Reinvestment Act (2009-2012) to analyze the effect of government spending on consumer spending.

Down the River: Glyphosate Use in Agriculture and Birth Outcomes of Surrounding Populations

30 January 2023

Mateus Dias, Rudi Rocha, and Rodrigo R. Soares

This paper documents an externality from the agricultural use of the most widely applied herbicide in the world—glyphosate—on birth outcomes of surrounding populations.

Central Bank Balance Sheet Policies Without Rational Expectations

30 January 2023

Luigi Iovino and Dmitriy Sergeyev

We study the effects of central bank balance sheet policies—namely, quantitative easing and foreign exchange interventions—in a model where people form expectations through an iterative level-k thinking process.

Stalled Racial Progress and Japanese Trade in the 1970s and 1980s

24 January 2023

Mary Kate Batistich and Timothy N. Bond

We assess the impact of a rapid rise in Japanese import competition on the growth in racial earnings and employment gaps during the 1970s and 80s.

Hinterlands, city formation and growth: Evidence from the U.S. westward expansion

24 January 2023

Dávid Krisztián Nagy

I study how geography shaped city formation and aggregate development in the United States prior to the Civil War. To guide my analysis, I present a conjecture that cities’ farm hinterlands fostered both city development and aggregate growth: the hinterland hypothesis.

Estimating Production Functions of Multiproduct Firms

22 January 2023

Nelli Valmari

Multiproduct firms constitute a considerable share of firms and account for an even greater share of production. Nevertheless, the vast majority of production function estimates are based on the assumption that firms are single-product manufacturers.

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"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:

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"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:

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"A new method for identifying and estimating consumer preferences when choice sets are constrained due to selection or search, but are not observed"

New paper by Agarwal & Somaini:

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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.

New paper by Coeurdacier, @teignier & @FlorianOswald

https://www.restud.com/structural-change-land-use-and-urban-expansion/

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