Page 28 – The Review of Economic Studies

The Slaughter of the Bison and Reversal of Fortunes on the Great Plains

24 May 2023

Donn. L. Feir, Rob Gillezeau, and Maggie E.C. Jones

In the late nineteenth century, the North American bison was brought to the brink of extinction in just over a decade. We demonstrate that the loss of the bison had immediate, negative consequences for the Native Americans who relied on them and ultimately resulted in a permanent reversal of fortunes. Once amongst the tallest people in the world, the generations of bison-reliant people born after the slaughter lost their entire height advantage.

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.

REStud North America Tour 2023 - tourists announced

REStud North America Tour 2023 – tourists announced

12 May 2023

The 2023 North America Tour will be hosted by Brown University, Rice University, and (jointly) the St. Louis Fed and Washington University of St. Louis.

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.

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"Firm exits can trigger cascades of shutdown. New work studies how these cascades propagate and their impact on aggregate fluctuations."

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I'm so fortunate that this paper got published in such a good journal.

I hope that it can be a helpful guide for future researchers who want to work at the intersection of economics and genetics and estimate Gene-Environment interplay #GxE

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This paper started with data. We were convinced that the discrepancy between book and market values of banks was key to understanding the data. We then developed a theory where, with a simple model, only one state variable driving Tobin's Q, you can explain several data moments.