Ramsey Strikes Back: Optimal Commodity Taxes and Redistribution in the...
An influential result in modern optimal tax theory, the Atkinson and Stiglitz (1976) theorem, holds that for a broad class of utility functions, all redistribution should be carried out through labor...
View ArticleCensored Quantile Instrumental Variable Estimation with Stata -- by Victor...
Many applications involve a censored dependent variable and an endogenous independent variable. Chernozhukov, Fernandez-Val, and Kowalski (2015) introduced a censored quantile instrumental variable...
View ArticleThe Impact of Health on Labor Market Outcomes: Experimental Evidence from...
While economists have posited that health investments increase earnings, isolating the causal effect of health is challenging due both to reverse causality and unobserved heterogeneity. We examine the...
View ArticleRisks in China's Financial System -- by Zheng Michael Song, Wei Xiong
Motivated by growing concerns about the risks and instability of China's financial system, this article reviews several commonly perceived financial risks and discusses their roots in China's...
View ArticleWhat Do Workplace Wellness Programs Do? Evidence from the Illinois Workplace...
Workplace wellness programs cover over 50 million workers and are intended to reduce medical spending, increase productivity, and improve well-being. Yet, limited evidence exists to support these...
View ArticleRegulating Mismeasured Pollution: Implications of Firm Heterogeneity for...
This paper provides the first estimates of within-industry heterogeneity in energy and CO2 productivity for the entire U.S. manufacturing sector. We measure energy and CO2 productivity as output per...
View ArticleIntergenerational Effects of Incarceration -- by Manudeep Bhuller, Gordon B....
An often overlooked population in discussions of prison reform is the children of inmates. How a child is affected depends both on what incarceration does to their parent and what they learn from their...
View ArticleThe Power of Working Longer -- by Gila Bronshtein, Jason Scott, John B....
This paper compares the relative strengths of working longer vs. saving more in terms of increasing a household's affordable, sustainable standard of living in retirement. Both stylized households and...
View ArticleThe Effect of Education on Health and Mortality: A Review of Experimental and...
Education is strongly associated with better health and longer lives. However, the extent to which education causes health and longevity is widely debated. We develop a human capital framework to...
View ArticleShadow Funding Costs: Measuring the Cost of Balance Sheet Constraints -- by...
Recent theory suggests that balance sheet frictions and constraints faced by financial intermediaries can have major asset pricing implications. We propose a new measure of the impact of these...
View ArticleReal Keynesian Models and Sticky Prices -- by Paul Beaudry, Franck Portier
In this paper we present a generalized sticky price model which allows, depending on the parameterization, for demand shocks to maintain strong expansionary effects even in the presence of perfectly...
View ArticleLiquidity Regimes and Optimal Dynamic Asset Allocation -- by Pierre...
We solve for the optimal dynamic asset allocation when expected returns, volatilities, and trading costs follow a regime switching model. The optimal policy is to trade partially towards an aim...
View ArticleFinancial Heterogeneity and the Investment Channel of Monetary Policy -- by...
We study the role of heterogeneity in firms' financial positions in determining the investment channel of monetary policy. Empirically, we show that firms with low leverage or high credit ratings are...
View ArticleWage Dynamics and Returns to Unobserved Skill -- by Lance Lochner, Youngmin...
Economists disagree about the factors driving the substantial increase in residual wage inequality in the U.S. over the past few decades. We identify and estimate a general model of log wage residuals...
View ArticleChildren and Gender Inequality: Evidence from Denmark -- by Henrik Kleven,...
Despite considerable gender convergence over time, substantial gender inequality persists in all countries. Using Danish administrative data from 1980-2013 and an event study approach, we show that...
View ArticlePrices or Quantities Dominate Banking and Borrowing -- by Martin L. Weitzman
The possibility of intertemporal banking and borrowing of tradeable permits is often viewed as tilting the various policy debates about optimal pollution control instruments toward favoring such...
View ArticleSources of Displaced Workers' Long-Term Earnings Losses -- by Marta...
We estimate the earnings losses of a cohort of workers displaced during the Great Recession and decompose those long-term losses into components attributable to fewer work hours and to reduced hourly...
View ArticleIdentification and Estimation of Dynamic Causal Effects in Macroeconomics...
An exciting development in empirical macroeconometrics is the increasing use of external sources of as-if randomness to identify the dynamic causal effects of macroeconomic shocks. This approach - the...
View ArticleWhy Are Professors "Poorly Paid"? -- by Daniel S. Hamermesh
Using Current Population Survey data, I demonstrate a 15-percentage point wage disadvantage among academics compared to all other doctorate-holders with the same demographics. Time-diary data show that...
View ArticleEndogenous and Selective Service Choices After Airline Mergers -- by Sophia...
We estimate a model of service choice and price competition in airline markets, allowing for the carriers that provide nonstop service to be a selected subset of the carriers competing in the market....
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