A Price Theory of Multi-sided Platforms: Comment

By Hongru Tan and Julian Wright

American Economic Review, September 2018

Weyl (2010) shows that in multi-sided platform settings, profit maximization leads to classical and Spence distortions, with the Spence distortion providing a new explanation for why prices may sometimes be too high (or too low) on platforms. However, the...

A Price Theory of Multi-sided Platforms: Reply

By E. Glen Weyl

American Economic Review, September 2018

I appreciate the clarification of my work by Tan and Wright, regret the confusing way my equations were labeled and intended them to be interpreted in the manner they suggest is correct.

Front Matter

American Economic Journal: Macroeconomics, April 2024

Dynamism Diminished: The Role of Housing Markets and Credit Conditions

By Steven J. Davis and John Haltiwanger

American Economic Journal: Macroeconomics, April 2024

We estimate the effects of house price changes on young-firm employment shares and industry-level employment growth in local economies. A novel test shows that house price effects on local economies work through wealth, liquidity, and collateral effects o...

Financial Frictions, Capital Misallocation, and Input-Output Linkages

By Hsuan-Li Su

American Economic Journal: Macroeconomics, April 2024

I study how input-output linkages amplify the aggregate impact of sectoral financial distortions in a dynamic general equilibrium model with endogenous capital wedges. The aggregate impact of a shock can be decomposed into weighted productivity changes an...

Ambiguity Aversion and Heterogeneity in Households' Beliefs

By Claudio Michelacci and Luigi Paciello

American Economic Journal: Macroeconomics, April 2024

UK households that wish for lower inflation and lower nominal interest rates have higher expected inflation. We interpret the evidence through the lens of a New Keynesian model where ambiguity-averse households differ in wealth, skill, labor market partic...

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...

Inequality, Taxation, and Sovereign Default Risk

By Minjie Deng

American Economic Journal: Macroeconomics, April 2024

Income inequality and worker migration significantly affect sovereign default risk. Governments often impose progressive taxes to reduce inequality, which redistribute income but discourage labor supply and induce emigration. Reduced labor supply and a sm...

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...

Credit Supply Shocks and Prices: Evidence from Danish Firms

By Tobias Renkin and Gabriel Züllig

American Economic Journal: Macroeconomics, April 2024

We study the response of firms' output prices to a cut in credit supply. We combine data on loans between Danish firms and banks with survey-based producer prices and transaction-based export unit values. Exploiting banks' heterogeneous exposure to the gl...

Medicaid spillovers

[Page]

An expansion of Medicaid eligibility for children born after 1983 significantly reduced rates of adult incarceration.

Performance pay

[Research Highlight]

August 11, 2021

How important is a compensation structure to attracting and retaining the best teachers?

Call for Papers and Posters: FDIC's 23rd Annual Bank Research Conference

[News]

April 05, 2024

The submission deadline is April 12, 2024.

Call for Papers: CSWEP-sponsored sessions at the 2024 APPAM Fall Research Meeting

[News]

April 05, 2024

The submission deadline is April 8, 2024.

Disability and Distress: The Effect of Disability Programs on Financial Outcomes

By Manasi Deshpande, Tal Gross, and Yalun Su

American Economic Journal: Applied Economics, April 2021

What is the relationship between disability programs and financial distress? We provide the first evidence on this relationship using several markers of financial distress: bankruptcy, foreclosure, eviction, and home sale. Rates of these adverse financial...