Social Influence and Networks
Paper Session
Tuesday, Jan. 5, 2021 10:00 AM - 12:00 PM (EST)
- Chair: Theresa Kuchler, New York University
Exposure to Grocery Prices and Inflation Expectations
Abstract
Consumers rely on the prices changes of goods in their grocery bundles when forming expectations about aggregate inflation. We use micro data that uniquely match individual expectations, detailed information about consumption bundles, and item-level prices. The weights consumers assign to price changes depend on the frequency of purchase, rather than expenditure share, and positive price changes loom larger than negative price changes. Prices of goods offered in the same store but not purchased do not affect inflation expectations, nor do other dimensions. Our results provide empirical guidance for models of expectations formation with heterogeneous consumers.Competition for Talent: Evidence from a Network of Labor Market Peers
Abstract
I construct a novel network of labor market peers that is denser and more centralized compared to product and capital market networks. Using my labor market network, I provide robust evidence that focal firms spend more on R&D and suffer more talent outflows when their labor market peers increase the benefits they offer their talented employees. Focal firms use capital markets to finance their labor market responses, issuing stock and increasing cash holdings. The findings highlight the predictive effect of firms’ labor market actions and provide evidence that ties labor markets and capital markets together.Ownership Network and Firm Growth: What Do Five Million Companies Tell about Chinese Economy
Abstract
Ownership network; Equity capital; Firm growth; Bank creditDiscussant(s)
Cesare Fracassi
,
University of Texas-Austin
Camelia Kuhnen
,
University of North Carolina-Chapel Hill
Daniel Metzger
,
Erasmus University
Dexin Zhou
,
City University of New York-Baruch College
JEL Classifications
- G0 - General