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The Heterogeneous Effects of Social Assistance and Unemployment Insurance: Evidence from a Life Cycle Model of Family Labor Supply and Savings

By Peter Haan and Victoria Prowse

American Economic Journal: Macroeconomics, April 2024

We empirically analyze the heterogeneous welfare effects of unemployment insurance and social assistance. We estimate a structural life cycle model of singles' and married couples' labor supply and savings decisions. The model includes heterogeneity by ag...

Redistributive Capital Taxation Revisited

By Özlem Kina, Ctirad Slavík, and Hakki Yazici

American Economic Journal: Macroeconomics, April 2024

This paper uses a rich quantitative model with endogenous skill acquisition to show that capital-skill complementarity provides a quantitatively significant rationale to tax capital for redistributive governments. The optimal capital income tax rate is 67...

Testing the Effectiveness of Unconventional Monetary Policy in Japan and the United States

By Daisuke Ikeda, Shangshang Li, Sophocles Mavroeidis, and Francesco Zanetti

American Economic Journal: Macroeconomics, April 2024

Unconventional monetary policy (UMP) may make the effective lower bound (ELB) on the short-term interest rate irrelevant. We develop a theoretical model that underpins our empirical test of this "irrelevance hypothesis," based on the simple idea that unde...

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...

The Transmission of Monetary Policy Shocks

By Silvia Miranda-Agrippino and Giovanni Ricco

American Economic Journal: Macroeconomics, July 2021

Commonly used instruments for the identification of monetary policy disturbances are likely to combine the true policy shock with information about the state of the economy due to the information disclosed through the policy action. We show that this sign...

A Reputational Theory of Firm Dynamics

By Simon Board and Moritz Meyer-ter-Vehn

American Economic Journal: Microeconomics, May 2022

We study the life cycle of a firm that produces a good of unknown quality. The firm manages its quality by investing while consumers learn via public breakthroughs; if the firm fails to generate such breakthroughs, its revenue falls and it eventually exit...