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Local Ties in Spatial Equilibrium

By Mike Zabek

American Economic Journal: Macroeconomics, April 2024

Someone who lives in an economically depressed place was probably born there. And having workers with local ties who prefer to live in their birthplaces leads to smaller migration responses in depressed places. Smaller migration responses lead to lower re...

Sectoral Heterogeneity in Nominal Price Rigidity and the Origin of Aggregate Fluctuations

By Ernesto Pastén, Raphael Schoenle, and Michael Weber

American Economic Journal: Macroeconomics, April 2024

We study the role of heterogeneity in nominal price rigidity for aggregate fluctuations in a model with sectoral productivity shocks. Theoretically, sectoral heterogeneity in the pricing friction has an ambiguous effect on GDP and aggregate price volatili...

How to Construct Nationally Representative Firm-Level Data from the Orbis Global Database: New Facts on SMEs and Aggregate Implications for Industry Concentration

By Şebnem Kalemli- Özcan, Bent E. Sørensen, Carolina Villegas-Sanchez, Vadym Volosovych, and Sevcan Yeşiltaş

American Economic Journal: Macroeconomics, April 2024

We construct nationally representative firm-level longitudinal data for European countries using financial statements from the Orbis database. We validate our data by comparing its coverage and firm size distribution to official statistics. We showcase tw...

Uncertainty and Information Acquisition: Evidence from Firms and Households

By Heiner Mikosch, Christopher Roth, Samad Sarferaz, and Johannes Wohlfart

American Economic Journal: Macroeconomics, April 2024

We leverage the small open economy Switzerland as a testing ground for basic premises of macroeconomic models of endogenous information acquisition, using tailored surveys of firms and households. Firms and households perceiving a greater exposure to exch...

Media Competition and News Diets

By Charles Angelucci, Julia Cagé, and Michael Sinkinson

American Economic Journal: Microeconomics, May 2024

Technological innovations like broadcast television and the internet challenge local newspapers' business model of bundling their local content with third-party content, such as wire national news. We examine how the entry of television affected newspaper...

Equity Concerns Are Narrowly Framed

By Christine L. Exley and Judd B. Kessler

American Economic Journal: Microeconomics, May 2024

Distributional decisions regularly involve multiple payoff components. In a series of experiments, we show that individuals sometimes exhibit narrow equity concerns: applying fairness preferences narrowly on a specific component of payoffs rather than on ...

A Theory of Monopolistic Competition with Horizontally Heterogeneous Consumers

By Sergey Kokovin, Alina Ozhegova, Shamil Sharapudinov, Alexander Tarasov, and Philip Ushchev

American Economic Journal: Microeconomics, May 2024

Our novel approach to modeling monopolistic competition with heterogeneous firms and consumers involves spatial product differentiation, in either a geographical space or a space of characteristics. In addition to price, each firm chooses location in spac...