Accepted Papers

Hazed and Confused: The Effect of Air Pollution on Dementia

4 December 2022

Kelly C. Bishop, Jonathan D. Ketcham, and Nicolai V. Kuminoff

We study whether long-term cumulative exposure to airborne small particulate matter (PM2.5) affects the probability that an individual receives a new diagnosis of Alzheimer’s disease or related dementias.

“Since You’re So Rich, You Must Be Really Smart”: Talent, Rent Sharing, and the Finance Wage Premium

4 December 2022

Michael J. Böhm, Daniel Metzger, and Per Strömberg

Financial sector wages have increased extraordinarily over the last decades. We address two potential explanations for this increase: (1) rising demand for talent and (2) firms sharing rents with their employees.

Learning from Neighbors about a Changing State

9 November 2022

Krishna Dasaratha, Benjamin Golub, and Nir Hak

Agents learn about a changing state using private signals and their neighbors’ past estimates of the state. We present a model in which Bayesian agents in equilibrium use neighbors’ estimates simply by taking weighted sums with time-invariant weights.

Robots, Trade, and Luddism: A Sufficient Statistic Approach to Optimal Technology Regulation

30 October 2022

Arnaud Costinot and Ivan Werning

Technological change, from the advent of robots to expanded trade opportunities, creates winners and losers. How should government policy respond?

IQ, Expectations, and Choice

26 October 2022

Francesco D'Acunto, Daniel Hoang, Maritta Paloviita, and Michael Weber

We use administrative and survey-based micro data to study the relationship between cognitive abilities (IQ), the formation of inflation expectations, and the consumption plans of a representative male population.

Optimal Feedback in Contests

23 October 2022

Jeffrey C. Ely, George Georgiadis, Sina Khorasani, and Luis Rayo

We obtain optimal dynamic contests for environments where the designer monitors effort through coarse, binary signals—Poisson successes—and aims to elicit maximum effort, ideally in the least amount of time possible, given a fixed prize.

Price Discrimination in the Information Age: Prices, Poaching, and Privacy with Personalized Targeted Discounts

23 October 2022

Simon Anderson, Alicia Baik and Nathan Larson

We study list price competition when firms can individually target consumer discounts (at a cost) afterwards, and we address recent privacy regulation (like the GDPR) allowing consumers to choose whether to opt-in to targeting.

Liquidity and Exchange Rates: An Empirical Investigation

16 October 2022

Charles Engel and Steve Pak Yeung Wu

We find strong empirical evidence that the liquidity yield on government bonds in combination with standard economic fundamentals can well account for nominal exchange rate movements.

The Review of Economic Studies Follow

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

A new paper by @THEdanjlewis & Mertens makes the Stock-Yogo test for weak instruments with multiple HAC robust endogenous regressors, propose tests for bias in a single coefficients, and extend to test general rank deficiency in the first stage

https://www.restud.com/a-robust-test-for-weak-instruments-for-2sls-with-multiple-endogenous-regressors/

#EconX

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New paper by @pilossopher, @davide_melc & Lewis estimates the distribution of spending responses to stimulus payments. MPCs are heterogeneous, with observables explaining 8% of the variation, highlighting the crucial role of latent heterogeneity

https://www.restud.com/latent-heterogeneity-in-the-marginal-propensity-to-consume/
#REStud

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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

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"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/

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