Prospect Theory and Energy Efficiency -- by Garth Heutel
Investments in energy efficiency entail uncertainty, and when faced with uncertainty consumers have been shown to behave according to prospect theory: preferences are reference-dependent and exhibit...
View ArticleCollective Action, White Flight, and the Origins of Formal Segregation Laws...
This paper develops and tests a simple model to explain the origins of municipal segregation ordinances. Passed by cities between 1909 and 1917, these ordinances prohibited members of the majority...
View ArticleOn the Relationship Between Quality and Productivity: Evidence from China's...
This paper presents an analysis of the effect of China's entry into the WTO on the quality choices of Chinese exporters in terms of their outputs and their inputs. Using highly disaggregated firm-level...
View ArticleWhat Information Drives Asset Prices? -- by Anisha Ghosh, George M....
The market price-dividend ratio is highly correlated with several macroeconomic variables, particularly inflation and labor market variables, but not with aggregate consumption and GDP. We incorporate...
View ArticleThe Employment and Output Effects of Short-Time Work in Germany -- by Russell...
We study the employment and output effects of the short-time work (STW) policy in Germany between 2009 and 2010. This intervention facilitated reductions in hours worked per employee with the goal of...
View ArticleThe Rise of Market Power and the Macroeconomic Implications -- by Jan De...
We document the evolution of markups based on firm-level data for the US economy since 1950. Initially, markups are stable, even slightly decreasing. In 1980, average markups start to rise from 18%...
View ArticleThe Political Economy of Transportation Investment -- by Edward L. Glaeser,...
Will politics lead to over-building or under-building of transportation projects? In this paper, we develop a model of infrastructure policy in which politicians overdo things that have hidden costs...
View ArticleCommodity Connectedness -- by Francis X. Diebold, Laura Liu, Kamil Yilmaz
We use variance decompositions from high-dimensional vector autoregressions to characterize connectedness in 19 key commodity return volatilities, 2011-2016. We study both static (full-sample) and...
View ArticleDigital Economics -- by Avi Goldfarb, Catherine Tucker
Digital technology is the representation of information in bits. This technology has reduced the cost of storage, computation, and transmission of data. Research on digital economics examines whether...
View ArticleFundamental Errors in the Voting Booth -- by Edward L. Glaeser, Giacomo A.M....
Psychologists have long documented that we over-attribute people's actions to innate characteristics, rather than to luck or circumstances. Similarly, economists have found that both politicians and...
View ArticleThe Medical Care Costs of Youth Obesity: An Instrumental Variables Approach...
This paper is the first to use the method of instrumental variables to estimate the causal impact of youth obesity on U.S. medical care costs. We examine data from the Medical Expenditure Panel Survey...
View ArticleUS Multinationals in Puerto Rico and the Repeal of Section 936 Tax Exemption...
Puerto Rico, the Commonwealth Island and unincorporated territory of the United States, was placed under a fiscal Oversight Board by the U.S. Congress in 2016. Unable to pay $72 billion it owes to bond...
View ArticleFunding Value Adjustments -- by Leif Andersen, Darrell Duffie, Yang Song
We demonstrate that the funding value adjustments (FVAs) of major dealers are debt-overhang costs to their shareholders. In order to maximize shareholder value, dealer quotations therefore adjust for...
View ArticleNudging Retirement Savings: A Field Experiment on Supplemental Plans -- by...
Although supplemental saving plans can be an important part of an individual's financial security in retirement, contribution rates remain low, particularly among those with lower salaries and less...
View ArticleLocal Protectionism, Market Structure, and Social Welfare: China's Automobile...
While China has made great strides in transforming its centrally-planned economy to a market-oriented economy, there still exist widespread interregional trade barriers, such as policies and practices...
View ArticleWho Bears the Economic Costs of Environmental Regulations? -- by Don...
Public economics has a well-developed literature on tax incidence - the ultimate burdens from tax policy. This literature is used here to describe not only the distributional effects of environmental...
View ArticleWeekly Top 5 Papers â August 21st 2017
1. Artificial Intelligence Policy: A Roadmap by Ryan Calo (University of Washington – School of Law)read more...
View ArticleChairman Giancarlo Appoints Bruce Tuckman CFTCâs Chief Economist
U.S. Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo today appointed Bruce Tuckman, an internationally-recognized economist and expert in modern derivatives markets, as...
View ArticlePortfolio Optimization with Entropic Value-at-Risk. (arXiv:1708.05713v1...
The entropic value-at-risk (EVaR) is a new coherent risk measure, which is an upper bound for both the value-at-risk (VaR) and conditional value-at-risk (CVaR). As important properties, the EVaR is...
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