-
作者：Gallo, Edoardo; Yan, Chang
作者单位：University of Cambridge; University of Cambridge; University of Oxford
摘要：The tension between efficiency and equilibrium is a central feature of economic systems. We examine this tradeoff in a network game with a unique Nash equilibrium in which agents can achieve a higher payoff by following a collaborative norm. Subjects establish and maintain a collaborative norm in the circle, but the norm weakens with the introduction of one hub connected to everyone in the wheel. In complex and asymmetric networks of 15 and 21 nodes, the norm disappears and subjects' play conv...
-
作者：Holden, Tom D.
作者单位：Deutsche Bundesbank
摘要：Occasionally binding constraints (OBCs) like the zero lower bound (ZLB) can lead to multiple equilibria, and so to belief-driven recessions. To aid in finding policies that avoid this, we derive existence and uniqueness conditions for otherwise linear models with OBCs. Our main result gives necessary and sufficient conditions for such models to have a unique (determinate) perfect foresight solution returning to a given steady state, for any initial condition. While standard New Keynesian model...
-
作者：Wuthrich, Kaspar; Zhu, Ying
作者单位：University of California System; University of California San Diego; Leibniz Association; Ifo Institut; Leibniz Association; Ifo Institut
摘要：We study the finite sample behavior of Lasso-based inference methods such as post-double Lasso and debiased Lasso. We show that these methods can exhibit substantial omitted variable biases (OVBs) due to Lasso's not selecting relevant controls. This phenomenon can occur even when the coefficients are sparse and the sample size is large and larger than the number of controls. Therefore, relying on the existing asymptotic inference theory can be problematic in empirical applications. We compare ...
-
作者：Abeberese, Ama Baafra; Barnwal, Prabhat; Chaurey, Ritam; Mukherjee, Priya
作者单位：Wellesley College; Michigan State University; Johns Hopkins University; University of Wisconsin System; University of Wisconsin Madison
摘要：While recent work suggests democracy does cause growth, the channels through which this effect occurs remain unclear. Exploiting quasi-random variation in the timing of district-level political regime changes induced by the collapse of President Suharto's government, we study the microlevel drivers of the democracy-growth relationship. Using Indonesian firm-level data, we find that democratization leads to an increase in firm productivity, a critical determinant of economic growth. Furthermore...
-
作者：Kendall, Chad
作者单位：University of Southern California
摘要：Herding and contrarian strategies produce informational inefficiencies when investors ignore private information, instead following or bucking past trends. In a simple market model, I show theoretically that investors with prospect theory preferences generically follow herding or contrarian strategies, but do so because of future returns as opposed to past trends. I conduct a laboratory experiment to test the theory and obtain an estimate of the distribution of preferences in the subject popul...
-
作者：Malikov, Emir; Zhao, Shunan
作者单位：Nevada System of Higher Education (NSHE); University of Nevada Las Vegas; Oakland University
摘要：We develop a novel methodology for the proxy variable identification of firm productivity in the presence of productivity-modifying learning and spillovers, which facilitates a unified internally consistent analysis of the spillover effects among firms. Contrary to the popular two-step empirical approach, ours does not postulate contradictory assumptions about firm productivity across the estimation steps. Instead, we explicitly accommodate cross-sectional dependence in productivity induced by...
-
作者：Bai, Ying; Jia, Ruixue
作者单位：Chinese University of Hong Kong; University of California System; University of California San Diego; University of London; London School Economics & Political Science
摘要：We study how political hierarchy shapes regional development in China, using variations driven by regime changes during the 1000-2000 C.E. period. We find that changes in the status of the provincial capital led to the rise and decline of different prefectures as measured by population and urbanization. Two other novel findings stand out: (1) the economic advantages of the provincial capitals did not persist if they lost their political status, and (2) political hierarchy shaped economic devel...
-
作者：Asquith, Brian J.; Mast, Evan; Reed, Davin
作者单位：W.E. Upjohn Institute for Employment Research; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
摘要：We study the local effects of new market-rate housing in low-income areas using microdata on large apartment buildings, rents, and migration. New buildings decrease rents in nearby units by about 6% relative to units slightly farther away or near sites developed later, and they increase in-migration from low-income areas. We show that new buildings absorb many high-income households and increase the local housing stock substantially. If buildings improve nearby amenities, the effect is not lar...
-
作者：Fioretti, Michele; Wang, Hongming
作者单位：Institut d'Etudes Politiques Paris (Sciences Po); Hitotsubashi University
摘要：Public procurement bodies increasingly resort to pay-for-performance contracts to promote efficient spending. We show that firm responses to pay-for-performance can widen the inequality in accessing social services. Focusing on the quality bonus payment initiative in Medicare Advantage, we find that higher quality-rated insurers responded to bonus payments by selecting healthier enrollees with premium differences across counties. Selection is profitable because the quality rating fails to adju...
-
作者：Ye, Han; Yi, Junjian
作者单位：Lingnan University; Peking University
摘要：Using administrative data from a large and diverse emergency department (ED), we examine the impact of race concordance between patients and physicians on physician decision-making and patient health outcomes. We find that patient-physician race concordance increases consultation time and decreases the probability of inpatient admission and diagnostic testing. Subsequently, race-concordant patients have lower revisit rates after ED discharge. The effect of race concordance is largely driven by...
