Economics
A German ministry recently proposed a limit of at most one price increase per day for petrol stations. At what time should the price reset be allowed in order to lower price levels the most throughout the day? To answer this question, I…
Clustered sampling is prevalent in empirical regression discontinuity (RD) designs, but it has not received much attention in the theoretical literature. In this paper, we introduce a general model-based framework for such settings and…
The persistence of poverty is not well explained by who is poor. We argue the relevant object of measurement is trappedness--expected escape time from deprivation--which varies systematically across institutional environments and is…
Historical episodes such as the World War I "live-and-let-live" system and the Christmas Truce of 1914 demonstrate that opposing military units can establish spontaneous, local cooperation even in extreme conflict environments. Such…
This paper pays tribute to Professor Giovanni Andrea Cornia's lifelong contributions to the measurement of global inequality. We review twelve world and regional databases of the Gini coefficient, illustrate their coverage, overlapping, and…
An agent chooses an action based on her private information and a recommendation from an informed but potentially misaligned adviser. With a known probability, the adviser truthfully reports his signal; with the remaining probability, he…
This paper develops limit theorems for random variables with network dependence, without requiring the individuals in the network to be located in a Euclidean or metric space. This distinguishes our approach from most existing limit…
This paper measures the effects of temperature and precipitation shocks on Mexican inflation using a regional panel. To measure the long-term inflationary effects of climate shocks, we estimate a panel autoregressive distributed lag model…
We use valid inequalities (cuts) of the binary integer program for winner determination in a combinatorial auction (CA) as "artificial items" that can be interpreted intuitively and priced to generate Artificial Walrasian Equilibria. We…
We assess the replicability of Orr (2022)'s method for estimating within-plant productivity across product lines, which combines demand estimation with cost minimization. The original study uses input price shocks in other output markets as…
Measures of inflation uncertainty and directional risk derived from higher moments of forecast distributions are contaminated by the first moment, but in distinct ways. Using individual density forecasts from the ECB Survey of Professional…
Recent literature proposes combining short-term experimental and long-term observational data to provide alternatives to conventional observational studies for the identification of long-term average treatment effects (LTEs). This paper…
In many choice settings self-punishment affects individual taste, by inducing the decision maker (DM) to disregard some of the best options. In these circumstances the DM may not maximize her true preference, but some harmful distortion of…
The Arellano-Bond estimator is a fundamental method for dynamic panel data models, widely used in practice. It can be severely biased when the time series dimension of the data, $T$, is long. The source of the bias is the large degree of…
In order to identify expertise, forecasters should not be tested by their calibration score, which can always be made arbitrarily small, but rather by their Brier score. The Brier score is the sum of the calibration score and the refinement…
Is homophily in social and economic networks driven by a taste for homogeneity (preferences) or by a higher probability of meeting individuals with similar attributes (opportunity)? This paper studies identification and estimation of an…
We characterize the optimal tax policy in an economy with human manual and cognitive labor, physical capital, and artificial intelligence (AI). Extending the dynamic taxation setup of Slavik and Yazici (2014), we find that it is optimal to…
The CD index is a widely used measure of disruptive inventions. Most studies compute it using USPTO data. This creates a puzzle because the US appears less disruptive than European and Asian countries. We show that this largely stems from…
Wealth taxes are a frequently proposed policy within the post-growth literature, but evaluations of their alignment with post-growth goals, and empirical estimates of their potential effects, are lacking. We contribute to this literature by…
We study a public decision problem in which a finite society selects a public-good level from a closed interval. Agents either have single-peaked preferences or are completely indifferent over the interval; the latter capture abstention or…