Infrequent Random Portfolio Decisions in an Open Economy Model 26 July 2022 Philippe Bacchetta, Eric van Wincoop and Eric R. YoungWe introduce a portfolio friction in a two-country DSGE model where investors face a constant probability to make new portfolio decisions.
Sentimental Business Cycles 22 July 2022 Andresa Lagerborg, Evi Pappa and Morten O. RavnWe estimate the dynamic causal effects of consumer sentiment shocks in the US.
Reputation Building under Observational Learning 22 July 2022 Harry PeiA patient seller interacts with a sequence of myopic consumers.
Price Discrimination and Public Policy in the U.S. College Market 22 July 2022 Ian FillmoreIn the United States, the federal government grants colleges access to a student’s Free Application for Federal Student Aid (FAFSA) which facilitates substantial price discrimination.
When Less is More: Improving Choices in Health Insurance Markets 22 July 2022 Jason Abaluck and Jonathan GruberWe study the impact of changing choice set size on the quality of choices in health insurance markets.
The Missing Profits of Nations 22 July 2022 Thomas Tørsløv, Ludvig Wier and Gabriel ZucmanBy exploiting new macroeconomic data known as foreign affiliates statistics, we show that affiliates of foreign multinational firms are an order of magnitude more profitable than local firms in a number of low-tax countries.
Asset Prices and Unemployment Fluctuations: A Resolution of the Unemployment Volatility Puzzle 15 July 2022 Patrick J. Kehoe, Pierlauro Lopez, Virgiliu Midrigan and Elena PastorinoRecent work has demonstrated that existing solutions of the unemployment volatility puzzle are at odds with the procylicality of the opportunity cost of employment, the cyclicality of wages, and the volatility of risk-free rates.
Consumer Search and Prices in the Automobile Market 13 July 2022 José Luis Moraga-González, Zsolt Sándor and Matthijs R. WildenbeestThis paper develops a discrete choice model of demand with optimal sequential consumer search.
