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Land, Wealth, and Taxation

By Roberto Brunetti, Carl Gaigné, and Fabien Moizeau

American Economic Journal: Microeconomics

This paper examines the role of land in wealth dynamics and its consequences on efficiency and inequality. We focus on the interplay among agents’ bidding for location, mortgage market imperfections, and inheritance in a model in which agents leave t...

The Perils of Overreaction

By Konstantin von Beringe and Mark Whitmeyer

American Economic Journal: Microeconomics

In order to study updating rules, we consider the problem of a malevolent principal screening an imperfectly Bayesian agent. We uncover a fundamental dichotomy between underreaction and overreaction to information. If, for some signal realization, the ...

Strapped for Cash: The Role of Financial Constraints for Innovating Firms, Misallocation and Aggregate Productivity Growth

By Esther Ann Bøler, Andreas Moxnes, and Karen Helene Ulltveit-Moe

American Economic Journal: Macroeconomics

We analyze the impact of reduced financial constraints on innovating firms' performance and access to credit using a reform that allowed firms to use patents as collateral. We develop a theoretical framework to guide the analysis and quantify the aggregat...