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Mortgage Pricing and Monetary Policy

By Matteo Benetton, Alessandro Gavazza, and Paolo Surico

American Economic Review, March 2025

This paper examines how central bank policies influence mortgage pricing in the United Kingdom. It shows that lenders price discriminate by offering two-part tariffs of interest rates and origination fees, and during unconventional monetary policies like ...

The Decline of Too Big to Fail

By Antje Berndt, Darrell Duffie, and Yichao Zhu

American Economic Review, March 2025

For globally systemically important banks (GSIBs) with US headquarters, we find significant reductions in market-implied probabilities of government bailout after the Global Financial Crisis (GFC), along with roughly 170 percent higher wholesale debt fina...

Internationalizing Like China

By Christopher Clayton, Amanda Dos Santos, Matteo Maggiori, and Jesse Schreger

American Economic Review, March 2025

We empirically characterize how China is internationalizing its bond market by staggering the entry of different types of foreign investors into its domestic market and propose a dynamic reputation model to explain this strategy. Our framework rationalize...

How Competitive Is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing

By Valentin Haddad, Paul Huebner, and Erik Loualiche

American Economic Review, March 2025

The conventional wisdom in finance is that competition is fierce among investors: if a group changes its behavior, others adjust their strategies such that nothing happens to prices. We estimate a demand system with flexible strategic responses for instit...

Black Lives: The High Cost of Segregation

By Robynn Cox, Jamein P. Cunningham, Alberto Ortega, and Kenneth Whaley

American Economic Journal: Economic Policy

Exploiting the arrangement of railroad tracks in northern cities, we explore the extent to which segregation impacts homicide victimization by race. Our results reveal a robust positive relationship between segregation and non-white homicide victimizat...

Local Projections

By Oscar Jorda and Alan M. Taylor

Journal of Economic Literature, March 2025

A central question in applied research is to estimate the effect of an exogenous intervention or shock on an outcome. The intervention can affect the outcome and controls on impact and over time. Moreover, there can be subsequent feedback between outcomes...

Deep Learning for Economists

By Melissa Dell

Journal of Economic Literature, March 2025

Deep learning provides powerful methods to impute structured information from large-scale, unstructured text and image datasets. For example, economists might wish to detect the presence of economic activity in satellite images, or to measure the topics o...