Accepted Papers

Follow the Money

2 April 2023

Marco Grotteria

I study, both empirically and theoretically, the economic and financial consequences of corporate lobbying. Firms lobby politicians to increase their share of government contracts, but political competition creates firm-level risk, inflating their cost of capital and reducing their incentive to invest in research and development (R&D).

Security Design in Non-Exclusive Markets with Asymmetric Information

29 March 2023

Vladimir Asriyan and Victoria Vanasco

We study the problem of a seller (e.g., a bank) who is privately informed about the quality of her asset and wants to exploit gains from trade with uninformed buyers (e.g., investors) by issuing securities backed by her asset cash flows.

Financial Cycles with Heterogeneous Intermediaries

29 March 2023

Nuno Coimbra and Hélène Rey

We develop a dynamic macroeconomic model with heterogeneous financial intermediaries and endogenous entry. Time-varying endogenous macroeconomic risk arises from the risk-shifting behaviour of the cross-section of financial intermediaries.

House Price Dynamics, Optimal LTV Limits and the Liquidity Trap

29 March 2023

Andrea Ferrero, Richard Harrison, and Benjamin Nelson

This paper studies the optimal design of a macro-prudential instrument, a loan-to-value (LTV) limit, and its implications for monetary policy in a model with nominal rigidities and financial frictions.

Using Disasters to Estimate the Impact of Uncertainty

20 March 2023

Scott R Baker, Nicholas Bloom, and Stephen Terry

Uncertainty rises in recessions and falls in booms. But what is the causal relationship? We construct cross-country panel data on stock market returns to proxy for first- and second-moment shocks and instrument these with natural disasters, terrorist attacks, and political shocks.

Price Discrimination in International Airline Markets

20 March 2023

Gaurab Aryal, Charles Murry, and Jonathan W. Williams

We develop a model of inter-temporal and intra-temporal price discrimination by monopoly airlines to study the ability of different discriminatory pricing mechanisms to increase efficiency and the associated distributional implications.

Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation

16 March 2023

Gregory Casey

I develop a directed technical change model of economic growth and energy efficiency in order to study the impact of climate change mitigation policies on energy use.

How the Other Half Died: Immigration and Mortality in US Cities

6 March 2023

Philipp Ager, James J. Feigenbaum, Casper Worm Hansen, and Hui Ren Tan

Fears of immigrants as a threat to public health have a long and sordid history. At the turn of the 20th century, when immigrants made up one-third of the population in crowded American cities, contemporaries blamed high urban mortality rates on the newest arrivals.

The Review of Economic Studies Follow

The official account of the Review of Economic Studies, one of the world's top economics journals.

"New study finds salary benchmarking cuts pay gaps by 25%. Pay dispersion partly arises from firms’ uncertainty about market rates, with key implications for pay transparency policy."

New paper from @pereztruglia, @zoebcullen, @ShengwuLi:

https://www.restud.com/whats-my-employee-worth-the-effects-of-salary-benchmarking/

#econtwitter

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"Competition via repo contracts resolves the lemons problem! A closed-form solution
for the unique pooling equilibrium explains why markets feature high haircuts and
low repo rates."

New paper from @SakiBigio & @liyan_shi:

https://www.restud.com/repurchase-options-in-the-market-for-lemons/

#econtwitter
#REStud

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"Wars disrupt supply chains, but firms adapt by reorganizing them. The 2014 war cut
Ukraine’s output in nonconflict areas by 5.5%, with one-third mitigated by link
reorganization."

New paper from @KorovkinVasily, @alexeymakarin & @MiyauchiYuhei:

https://www.restud.com/supply-chain-disruption-and-reorganization-theory-and-evidence-from-ukraines-war/
#REStud

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Recently accepted to #REStud, "Normalizations and misspecification in skill formation models," from Joachim Freyberger:

https://www.restud.com/normalizations-and-misspecification-in-skill-formation-models/

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Follow the Money

Security Design in Non-Exclusive Markets with Asymmetric Information

Financial Cycles with Heterogeneous Intermediaries

House Price Dynamics, Optimal LTV Limits and the Liquidity Trap

Using Disasters to Estimate the Impact of Uncertainty

Price Discrimination in International Airline Markets

Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation

How the Other Half Died: Immigration and Mortality in US Cities

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