Allocative and Remitted Wages: New Facts and Challenges for Keynesian Models...
Modern monetary business-cycle models rely heavily on price and wage rigidity. While there is substantial evidence that prices do not adjust frequently, there is much less evidence on whether wage...
View ArticleDo Field Experiments on Labor and Housing Markets Overstate Discrimination?...
There have been over 60 field experiments on discrimination in labor and housing markets conducted since 2000, in 16 countries. These studies nearly always find significant levels of discrimination...
View ArticlePrivate Provision of Social Insurance: Drug-specific Price Elasticities and...
Standard theory suggests that optimal consumer cost-sharing in health insurance increases with the price elasticity of demand, yet publicly-provided drug coverage typically involves uniform...
View ArticleVolatility and the Gains from Trade -- by Treb Allen, David Atkin
By reducing the negative correlation between local prices and productivity shocks, trade liberalization changes the volatility of returns. In this paper, we explore the second moment effects of trade....
View ArticleIs the Macroeconomy Locally Unstable and Why Should We Care? -- by Paul...
In most modern macroeconomic models, the steady state (or balanced growth path) of the system is a local attractor, in the sense that, in the absence of shocks, the economy would converge to the steady...
View ArticleHow Credit Constraints Impact Job Finding Rates, Sorting & Aggregate...
We empirically and theoretically examine how consumer credit access affects displaced workers. Empirically, we link administrative employment histories to credit reports. We show that an increase in...
View ArticleHow Does Hedge Fund Activism Reshape Corporate Innovation? -- by Alon Brav,...
This paper studies how hedge fund activism reshapes corporate innovation. Firms targeted by hedge fund activists experience an improvement in innovation efficiency during the five-year period following...
View ArticleThe Fiscal Cost of Hurricanes: Disaster Aid Versus Social Insurance -- by...
Little is known about the fiscal costs of natural disasters, especially regarding social safety nets that do not specifically target extreme weather events. This paper shows that US hurricanes lead to...
View ArticleA Model of Safe Asset Determination -- by Zhiguo He, Arvind Krishnamurthy,...
What makes an asset a "safe asset"? We study a model where two countries each issue sovereign bonds to satisfy investors' safe asset demands. The countries differ in the float of their bonds and their...
View ArticleThe Costs of Sovereign Default: Evidence from Argentina -- by Benjamin...
We estimate the causal effect of sovereign default on the equity returns of Argentine firms. We identify this effect by exploiting changes in the probability of Argentine sovereign default induced by...
View ArticleUnemployment and Environmental Regulation in General Equilibrium -- by Marc...
This paper analyzes the effects of environmental policy on employment (and unemployment) using a new general-equilibrium two-sector search model. We find that imposing a pollution tax causes...
View ArticleEast Asian Economies and Financial Globalization In the Post-Crisis World --...
This paper assesses the East Asian Economies' openness to cross-border capital flows and exchange rate arrangements in the past decades, with the main focus on emerging market economies. Using...
View ArticleFamily Disadvantage and the Gender Gap in Behavioral and Educational Outcomes...
Using birth certificates matched to schooling records for Florida children born 1992 - 2002, we assess whether family disadvantage disproportionately impedes the pre-market development of boys. We find...
View ArticleDiagnostic Expectations and Credit Cycles -- by Pedro Bordalo, Nicola...
We present a model of credit cycles arising from diagnostic expectations - a belief formation mechanism based on Kahneman and Tversky's (1972) representativeness heuristic. In this formulation, when...
View ArticleThe Impact of Health Insurance on Preventive Care and Health Behaviors:...
The U.S. population receives suboptimal levels of preventive care and has a high prevalence of risky health behaviors. One goal of the Affordable Care Act (ACA) was to increase preventive care and...
View ArticleNational Futures Association CEO Daniel Roth To Retire - Board Begins Search...
NFA announced today that President and CEO Daniel Roth has announced his plan to retire in the coming year. NFA's Board of Directors has authorized the formation of a committee to conduct a search for...
View ArticleWeekly Announcements â May 23, 2016
We are pleased to announce Max Planck Institute for Comparative Public Law & International Law (MPIL) has started a Law Research Centers Papers series within the Legal Scholarship Network...
View ArticleDeutsche Asset Management To Switch Three ETFs To The Bats ETF Marketplace...
Bats Global Markets, Inc. (Bats: BATS), the #1 U.S. market for the trading of exchange-traded funds (ETFs), today announced that Deutsche Asset Management is switching the primary listing of three...
View ArticleThe Jacobi Stochastic Volatility Model. (arXiv:1605.07099v1 [q-fin.MF])
We introduce a novel stochastic volatility model where the squared volatility of the asset return follows a Jacobi process. It contains the Heston model as a limit case. We show that the...
View ArticleA note on optimal expected utility of dividend payments with proportional...
In this paper, we consider the problem of maximizing the expected discounted utility of dividend payments for an insurance company that controls risk exposure by purchasing proportional reinsurance. We...
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