Economic Affairs

Recent Scholarly Publications

Records 24 / 50

MPCs, MPEs and Multipliers: A Trilemma for New Keynesian Models

July 2020

We establish an impossibility result for New Keynesian models with a frictionless labor market: these models cannot simultaneously match plausible estimates of marginal propensities to consume ...

Dissecting Mechanisms of Financial Crises: Intermediation and Sentiment

June 2020

We develop a model of financial crises with both a financial amplification mechanism, via frictional intermediation, and a role for sentiment, via time-varying beliefs about an illiquidity state....

Intermediation in Mortgage-Backed Securities: The Plantation Business of F.W. Hudig, 1759-1797

June 2020

Dutch-Caribbean plantations attracted substantial outside funding in the 1760s. This came to an abrupt end after the 1773 credit crisis.

Money burning in the theory of delegation

May 2020

This paper uses a Lagrangian approach to provide sufficient conditions under which money burning expenditures are used in an optimal delegation contract.

Limited liability and investment: Evidence from changes in marital property laws in the US South, 1840–1850

April 2020

We study the impact of marital property legislation passed in the US South in the 1840s on households’ investment in risky, entrepreneurial projects.

Do Immigrants Assimilate More Slowly Today Than in the Past?

March 2020

Using millions of historical census records and modern birth certificates, we document that immigrants assimilated into US society at similar rates in the past and present.

Roman Seas: A Maritime Archaeology of Eastern Mediterranean Economies

March 2020

That seafaring was fundamental to Roman prosperity in the eastern Mediterranean is beyond doubt, but a tendency by scholars to focus on the grandest long-distance movements between major cities has...

Were Jews in Interwar Poland More Educated?

February 2020

In the context of interwar Poland, we find that Jews tended to be more literate than non Jews, but show that this finding is driven by a composition effect.

What Determines Climate Policy Preferences if Reducing Greenhouse-Gas Emissions Is a Global Public Good?

February 2020

Many international policy problems, including climate change, have been characterized as global public goods.

“Nash-in-Nash” tariff bargaining

January 2020

We provide an equilibrium analysis of the efficiency properties of simultaneous bilateral tariff negotiations in a three-country model of international trade.

Mind the Gap in Sovereign Debt Markets: The US Treasury basis and the Dollar Risk Factor

September 2019

The U.S. dollar exchange rate clears the global market for dollar-denominated safe assets.

Measuring Time Preferences in Large Surveys

September 2019

Time preferences may explain public opinion about a wide range of long-term policy problems whose costs and benefits will be realized in the distant future.

Using the Sequence-Space Jacobian to Solve and Estimate Heterogeneous-Agent Models

July 2019

We propose a general and highly efficient method for solving and estimating general equilibrium heterogeneous-agent models with aggregate shocks in discrete time.

A Model of Safe Asset Determination

April 2019

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 Intertemporal Keynesian Cross

September 2018

We demonstrate the importance of intertemporal marginal propensities to consume (iMPCs) in disciplining general equilibrium models with heterogeneous agents and nominal rigidities.

Inequality and redistribution behavior in a give-or-take game

April 2018

Why has economic inequality risen dramatically over the past few decades even in democracies where individuals could vote for more redistribution?

The Mystery of the Kibbutz: Egalitarian Principles in a Capitalist World

February 2018

How the kibbutz movement thrived despite its inherent economic contradictions and why it eventually declinedThe kibbutz is a social experiment in collective living that challenges traditional...

To the New World and Back Again: Return Migrants in the Age of Mass Migration

August 2017

The authors compile large data sets from Norwegian and US historical censuses to study return migration during the Age of Mass Migration (1850–1913).

Making exit costly but efficient: the political economy of exit clauses and secession

June 2017

This article presents a political economic analysis of exit from federations. Over time, members’ benefits from being in a federation can fluctuate because of changes in the state of the world.

Wealth Inequality and Democracy

May 2017

What do we know about wealth inequality and democracy?

Wealth Inequality and Democracy

February 2017

What do we know about wealth inequality and democracy?