Rationally Inattentive Behavior: Characterizing and Generalizing Shannon...
We provide a full behavioral characterization of the standard Shannon model of rational inattention. The key axiom is "Invariance under Compression", which identifies this model as capturing an ideal...
View ArticleMonetary Policy in the Capitals of Capital -- by Elena Gerko, Helene Rey
The importance of financial markets and international capital flows have increased greatly since the 1990s. How does this affect the effectiveness of monetary policy? We analyse the transmission of...
View ArticleInvestment-Horizon Spillovers -- by Alexander M. Chinco, Mao Ye
This paper uses wavelets to decompose each stock's trading-volume variance into frequency-specific components. We find that stocks dominated by short-run fluctuations in trading volume have abnormal...
View ArticleValuing Pain using the Subjective Well-being Method -- by Thorhildur...
Chronic pain clearly lowers utility, but it is empirically challenging to estimate the monetary compensation needed to offset this utility reduction. We use the subjective well-being method to estimate...
View ArticleSurvival Ambiguity and Welfare -- by Frank N. Caliendo, Aspen Gorry, Sita Slavov
Nearly all life-cycle models adopt Yaari's (1965) assumption that individuals know the survival probabilities that they face. Given that an individual's exact survival probabilities are likely unknown,...
View ArticlePolitical Distribution Risk and Aggregate Fluctuations -- by Thorsten...
We argue that political distribution risk is an important driver of aggregate fluctuations. To that end, we document significant changes in the capital share after large political events, such as...
View ArticleA Survey of Global Impacts of Climate Change: Replication, Survey Methods,...
The present study has two objectives. The first is a review of studies that estimate the global economic impacts of climate change using a systematic research synthesis (SRS). In this review, we...
View ArticleAddressing the Opioid Epidemic: Is There a Role for Physician Education? --...
Using data on all opioid prescriptions written by physicians from 2006 to 2014, we uncover a striking relationship between opioid prescribing and medical school rank. Even within the same specialty and...
View ArticleWomen, Work, and Family -- by Francine D. Blau, Anne E. Winkler
This chapter focuses on women, work, and family, with a particular focus on differences by educational attainment. First, we review long-term trends regarding family structure, participation in the...
View ArticleForeign Investment and Domestic Productivity: Identifying Knowledge...
We study the impact of foreign direct investment (FDI) on total factor productivity (TFP) of domestic firms using a new, representative firm-level data set spanning six countries. A novel finding is...
View ArticleThe Generic Drug User Fee Amendments: An Economic Perspective -- by Ernst R....
Regulation can influence the structure, conduct and performance of consumer product markets and the structure of product markets can influence regulation. Since the vast majority of prescription drugs...
View ArticleEstimating the Value of Higher Education Financial Aid: Evidence from a Field...
Using data from a Canadian field experiment on the financial barriers to higher education, we estimate the distribution of the value of financial aid for prospective students, and relate it to parental...
View ArticleThe sequel to the global financial crisis is here
The sequel to the global financial crisis is here https://t.co/aECYMoZWWJ â Steven Pressman (@pressmansteven) August 7, 2017
View ArticleHigh Status Firms: Hiring Advantage but Retention Challenge
Scholars Matthew Bidwell, Ethan Mollick, Roxana Barbulescu, and Shinjae Won have written a new paper titled, âI Used to Work at Goldman Sachs! How Firms Benefit From Organizational Status in the...
View ArticleCFTC Finds that The Bank of Tokyo-Mitsubishi UFJ, Ltd. Engaged in Spoofing of...
The U.S. Commodity Futures Trading Commission (CFTC) issued an Order filing and settling charges against The Bank of Tokyo-Mitsubishi UFJ, Ltd. for engaging in multiple acts of spoofing in a variety of...
View ArticleOpportunities and Challenges: Lessons from Analyzing Terabytes of Scanner...
This paper seeks to better understand what makes big data analysis different, what we can and cannot do with existing econometric tools, and what issues need to be dealt with in order to work with the...
View ArticleLevel and Volatility Factors in Macroeconomic Data -- by Yuriy Gorodnichenko,...
The conventional wisdom in macroeconomic modeling is to attribute business cycle fluctuations to innovations in the level of the fundamentals. Though volatility shocks could be important too, their...
View ArticleGlobalization and the Increasing Correlation between Capital Inflows and...
We document that the correlation between capital inflows and outflows has increased substantially over time in a sample of 128 advanced and developing countries. We provide evidence that this is a...
View ArticlePortfolio Liquidity and Diversification: Theory and Evidence -- by Lubos...
A portfolio's liquidity depends not only on the liquidity of its holdings but also on its diversification. We propose simple, theoretically motivated measures of portfolio liquidity and...
View ArticleIndirect Inference with Importance Sampling: An Application to Women's Wage...
This paper has two main parts. In the first, we describe a method that smooths the objective function in a general class of indirect inference models. Our smoothing procedure makes use of importance...
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