Private 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 ArticleInequality Before Birth: The Developmental Consequences of Environmental...
Millions of tons of hazardous wastes have been produced in the United States in the last 60 years which have been dispersed into the air, into water, and on and under the ground. Using new...
View ArticleCross-Generational Differences in Educational Outcomes in the Second Great...
We make use of a new data source - matched birth records and longitudinal student records in Florida - to study the degree to which student outcomes differ across successive immigrant generations....
View ArticlePrice Regulation and Environmental Externalities: Evidence from Methane Leaks...
Price regulations are widely used to reduce inefficiencies from natural monopolies, but they can introduce other inefficiencies, such as the failure to cost-minimize. We examine a previously unstudied...
View ArticleRecruiting and Supporting Low-Income, High-Achieving Students at Flagship...
We study two interventions in Texas that were designed to overcome multiple hurdles faced by low-income, high-ability college students. The Longhorn Opportunity Scholars (LOS) and Century Scholars (CS)...
View ArticleThe Great Escape? A Quantitative Evaluation of the Fed's Liquidity Facilities...
We introduce liquidity frictions into an otherwise standard DSGE model with nominal and real rigidities and ask: Can a shock to the liquidity of private paper lead to a collapse in short-term nominal...
View ArticleSocial Networks and Housing Markets -- by Michael Bailey, Ruiqing Cao,...
We document that the recent house price experiences within an individual's social network affect her perceptions of the attractiveness of property investments, and through this channel have large...
View ArticleReference-Dependent Job Search: Evidence from Hungary -- by Stefano...
We propose a model of job search with reference-dependent preferences, where the reference point is given by recent income. Newly unemployed individuals search hard given that they are at a loss, but...
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