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作者：Dudley, Evan; Sun, Hongfei; Diao, Chengjie
作者单位：Queens University - Canada; Queens University - Canada; University System of Georgia; Georgia Institute of Technology
摘要：We investigate the sources of the dealer centrality premium in the over-the-counter market for corporate bonds. We model dealer heterogeneity by allowing the dealer's status in the network to determine search effort and inventory costs when choosing to conduct riskless principal or principal trades. Structural estimates match the observed centrality premium across transaction types and trade count deciles. Counterfactual analyses reveal that measures that limit core dealer bargaining power vis...
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作者：Li, Kai
作者单位：Peking University Shenzhen Graduate School (PKU Shenzhen); Peking University
摘要：This discussion of Reallocating and Pricing Illiquid Capital: Two Productive Trees by Janice Eberly and Neng Wanghighlights its tractable two-sector model with costly capital reallocation, which links diversification benefits, adjustment frictions, and asset pricing. I outline four promising directions for future research: quantifying the diversification-friction trade-off, exploring business cycle and asset pricing dynamics, examining growth under uncertainty, and connecting to the capital re...
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作者：Herrera, Helios; Mace, Antonin; Nunez, Matias
作者单位：University of Warwick; Centre for Economic Policy Research - UK; Paris School of Economics; Centre National de la Recherche Scientifique (CNRS); Universite PSL; Ecole Normale Superieure (ENS); Institut Polytechnique de Paris; Ecole Polytechnique; ENSAE Paris; Centre National de la Recherche Scientifique (CNRS)
摘要：We study how do-or-die threats ending negotiations affect gridlock and welfare when two opposing parties bargain. Failure to agree on a deal in any period implies a continuation of the negotiation. However, under brinkmanship, agreement failure in any period may precipitate a crisis with a small chance. In equilibrium, such brinkmanship threats improve the probability of an agreement, but also increase the risk of crisis. Brinkmanship reduces welfare when one might think it is most needed: sev...
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作者：Sager, Erick; Timoshenko, Olga A.
作者单位：Federal Reserve System - USA; Federal Reserve System Board of Governors; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：This paper examines the effect of idiosyncratic uncertainty on trade elasticities in a canonical heterogeneous-firm model. We identify two channels through which uncertainty affects elasticities: a selection effect, whereby uncertainty lowers export participation thresholds and a dispersion effect, whereby uncertainty lowers the dispersion of export selection shocks, with an ambiguous impact on elasticities. We develop a methodology to quantify trade elasticities under uncertainty and apply it...
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作者：Frasser, Cristian; Lebeau, Lucie
作者单位：Universidad del Valle; Wellesley College
摘要：This paper rationalizes the adoption of a complementary currency (CC) in a small, local economy. A local money shortage occurs when the supply of official currency, determined endogenously by trade with a larger economy, falls short of the liquidity needed for first-best activity. A CC then supplements liquidity and boosts local trade at the expense of external trade; the welfare-maximizing CC supply is strictly positive. A calibration to coca-growing villages in Colombia, where coca-base circ...
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作者：Sargent, Thomas J.; Selvakumar, Yatheesan J.; Yang, Ziyue
作者单位：New York University; Australian National University
摘要：We establish connections between dynamic mode decompositions (DMDs), vector autoregressions, and linear state-space models, showing that DMD provides a computationally efficient, SVD-based estimator of low-rank first-order VAR projection coefficients in high-dimensional settings. When the measurement matrix has full column rank, the recovered nonzero eigenvalues coincide with those of the underlying state transition matrix. We apply DMD to a 100-household heterogeneous-agent economy with compl...
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作者：Zennyo, Yusuke
作者单位：Kobe University
摘要：This paper develops a model of platform liability for ex post compensation of consumer harm caused by third-party sellers. A platform chooses how liability is shared with sellers, but assumes no liability because it reduces sellers' safety investments. Mandated platform liability can increase or decrease consumer surplus: it is more likely to be beneficial when the platform has weak market power or faces competition, but less so when it sells first-party goods or third-party sellers are judgme...
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作者：Klumpp, Tilman; Su, Xuejuan
作者单位：University of Alberta
摘要：We examine the feedback loop between shortages and consumer stockpiling. The expectation of shortages induces consumers to stockpile, which amplifies the shortages they experience, which further encourages stockpiling. We show that, when aggregate supply is insufficient to meet aggregate demand and prices cannot adjust to clear the market, multiple equilibria exist which feature stockpiling to different degrees. Even when the fundamental supply shortfall is small, significant stockpiling can a...
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作者：Bagwell, Kyle; Lee, Seung Hoon
作者单位：Stanford University; National Bureau of Economic Research; Yonsei University
摘要：We analyze market entry efficiency in single- and two-sector closed-economy Melitz-Ottaviano (MO) models without an outside good. Comparing market and second-best outcomes, we find that market entry is efficient in the single-sector model. This efficiency also holds in a symmetric two-sector setting. When sectors have asymmetric demand and the level of asymmetry is sufficiently small, the market yields excessive entry into the high-demand sector. This inefficiency arises from the presence of a...
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作者：Guler, Bulent; Michaud, Amanda
作者单位：Indiana University System; Indiana University Bloomington; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
摘要：We argue that transitional dynamics play a critical role in evaluating the effects of punitive incarceration reform on crime, inequality, and labor markets. Individuals' past choices regarding crime and employment under previous policies have persistent consequences that limit their responsiveness to policy changes. A quantitative model of this theory, calibrated using administrative data, predicts nuanced dynamics of crime and incarceration that are distinct across property and violent crime ...
