Price Rigidities and the Granular Origins of Aggregate Fluctuations -- by...
We study the aggregate implications of sectoral shocks in a multi-sector New Keynesian model featuring sectoral heterogeneity in price stickiness, sector size, and input-output linkages. We calibrate a...
View ArticleManagement, Supervision, and Health Care: A Field Experiment -- by Felipe A....
If health service delivery is poorly managed, then increases in inputs or ability may not translate into gains in quality. However, little is known about how to increase managerial capital to generate...
View ArticlePolitics, Hospital Behavior, and Health Care Spending -- by Zack Cooper,...
This paper examines the link between legislative politics, hospital behavior, and health care spending. When trying to pass sweeping legislation, congressional leaders can attract votes by adding...
View ArticleBail-ins and Bail-outs: Incentives, Connectivity, and Systemic Stability --...
This paper develops a framework to analyze the consequences of alternative designs for interbank networks, in which a failure of one bank may lead to others. Earlier work had suggested that, provided...
View ArticleMonetary-Fiscal Interactions and the Euro Area's Malaise -- by Marek...
When monetary and fiscal policy are conducted as in the euro area, output, inflation, and government bond default premia are indeterminate according to a standard general equilibrium model with sticky...
View ArticleEnjoying the Quiet Life: Corporate Decision-Making by Entrenched Managers --...
In this study, we empirically test "quiet life hypothesis," which predicts that managers who are subject to weak monitoring from the shareholders avoid making difficult decisions such as risky...
View ArticleThe Effects of Graduation Requirements on Risky Health Behaviors of High...
Previous studies have shown that years of formal schooling attained affects health behaviors, but little is known about how the stringency of academic programs affects such behaviors, especially among...
View ArticleHow do Credit Supply Shocks Affect the Real Economy? Evidence from the United...
Does an expansion in credit supply affect the economy by increasing productive capacity, or by boosting demand? We design a test to uncover which of the two channels is more dominant, and we apply it...
View ArticleMarket Power, Production (Mis)Allocation and OPEC -- by John Asker, Allan...
This paper estimates the extent to which market power is a source of production misallocation. Productive inefficiency occurs through more production being allocated to higher-cost units of production,...
View ArticleThe Origins of Financial Development: How the African Slave Trade Continues...
We assess how the African slave trade--which had enduring effects on social cohesion--continues to influence financial systems. After showing that the intensity with which people were enslaved and...
View ArticleUnderstanding Precautionary Cash at Home and Abroad -- by Michael W....
Has the need for precautionary savings driven the dramatic increase in U.S. corporate cash? We show that the run-up in cash is concentrated in foreign subsidiaries of multinational corporations....
View ArticleFinTech Adoption Across Generations: Financial Fitness in the Information Age...
This paper analyzes how better access to financial information via new technology changes use of consumer credit and affects financial fitness. We exploit the introduction of a smartphone application...
View ArticleLong-Term Care in Latin America and the Caribbean? Theory and Policy...
This paper discusses theoretical and practical issues related to long-term care (LTC) services in Latin America. Demand for these services will rise as the region undergoes a swift demographic...
View ArticleUncertainty Shocks as Second-Moment News Shocks -- by David Berger, Ian...
We provide evidence on the relationship between aggregate uncertainty and the macroeconomy. Identifying uncertainty shocks using methods from the news shocks literature, the analysis finds that...
View ArticleWhere Modern Macroeconomics Went Wrong -- by Joseph E. Stiglitz
This paper provides a critique of the DSGE models that have come to dominate macroeconomics during the past quarter-century. It argues that at the heart of the failure were the wrong microfoundations,...
View ArticleStructural Transformation, Deep Downturns, and Government Policy -- by Joseph...
Most recessions are a result of some shock to the economic system, typically amplified by financial accelerators, and leading to large balance sheet effects of households and firms, which result in the...
View ArticleCan Financial Incentives Reduce the Baby Gap? Evidence from a Reform in...
To assess whether earnings-dependent maternity leave positively impacts fertility and narrows the baby gap between high educated (high earning) and low educated (low earning) women, I exploit a major...
View ArticleHigh-Dosage Tutoring and Reading Achievement: Evidence from New York City --...
This study examines the impact on student achievement of high-dosage reading tutoring for middle school students in New York City Public Schools, using a school-level randomized field experiment....
View ArticleThe Accident Externality from Trucking -- by Lucija Muehlenbachs, Stefan...
How much risk does a heavy truck impose on highway safety? To answer this question, we look at the rapid influx of trucks during the shale gas boom in Pennsylvania. Using quasi-experimental variation...
View ArticleTarnishing the Golden and Empire States: Land-Use Restrictions and the U.S....
This paper studies the impact of state-level land-use restrictions on U.S. economic activity, focusing on how these restrictions have depressed macroeconomic activity since 2000. We use a variety of...
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