4 December 2018

Online Competition and Pricing Behaviors

Online competition has raised both the frequency of price changes and the degree of uniform pricing across locations in the United States over the past 10 years, an analysis by Alberto Cavallo shows. These changes make retail prices more sensitive to aggregate "nationwide" shocks.

3 December 2018

Fatal Attraction? Extended Unemployment Benefits,
Labor Force Exits, and Mortality in Austria

Studying a program that encouraged early retirements among Austrian workers, Andreas Kuhn, Stefan Staubli, Jean-Philippe Wuellrich, and Josef Zweimüller find that men who retire one year earlier experience a 6.8 percent increase in the risk of premature death and on average die 0.2 years earlier.

30 November 2018

Happiness at Different Ages: Social Context Matters

John F. Helliwell, Max B. Norton, Haifang Huang, and Shun Wang find that social context affects the age pattern in individuals’ subjective expressions of life satisfaction. While average satisfaction follows a U-shape by age, bottoming in middle-age, the U becomes flatter after controlling for length of residence in the current community, for living in a couple, and for having a partner-like superior at work.

29 November 2018

The Minimum Wage, the EITC, and Criminal Recidivism

A minimum wage increase of $0.50 reduces the probability of recently released offenders returning to prison within a year by 2.8 percent, according to an analysis by Amanda Y. Agan and Michael D. Makowsky. The availability of state Earned Income Tax Credits also reduces recidivism, but only for women.

28 November 2018

Creating New Firms When Local Opportunities Arise

When favorable global commodity price movements increase the demand for local products in Brazil, the number of local firms rises, and this increase is almost entirely driven by young, skilled individuals, Shai Bernstein, Emanuele Colonnelli, Davide Malacrino, and Timothy McQuade find. The response is larger in areas with better access to finance and more skilled human capital.

27 November 2018

Exporting Pollution

Firms headquartered in countries with strict environmental policies locate activities that generate high levels of CO2 emissions abroad, in countries with relatively weaker policies, rather than at home, Itzhak Ben-David, Stefanie Kleimeier, and Michael Viehs find. Firms based in stricter countries nevertheless emit less overall CO2 globally.

26 November 2018

Belief Disagreement and Portfolio Choice

Relative to Democrats, Republican investors actively increased the share of equity and market beta of their portfolios following the 2016 election, Maarten Meeuwis, Jonathan A. Parker, Antoinette Schoar, and Duncan I. Simester find. The results are robust to controls for age, wealth, income, state, and even county-employer fixed effects.

21 November 2018

Immigrants, Labor Market Dynamics
and Adjustment to Shocks in the Euro Area

The mobility of foreign born workers in the Eurozone is strongly procyclical, but this is not true for natives, an analysis by Gaetano Basso, Francesco D'Amuri, and Giovanni Peri finds. Eurozone natives also are less mobile across countries than U.S. natives are across states in response to labor demand shocks. This suggests that immigrants accelerate labor market adjustments.

20 November 2018

Estimating Public-Good Complementarity

Improving public safety near urban parks can turn them from public bads to goods, David Albouy, Peter Christensen, and Ignacio Sarmiento-Barbieri report. In a study of Chicago, New York, and Philadelphia, they find that recent reductions in crime have “unlocked” $3 billion in property value.

19 November 2018

Perception of House Price Risk and Homeownership

While 71 percent of U.S. households believe that housing is a safe investment, renters are much more likely to perceive housing as risky, Manuel Adelino, Antoinette Schoar, and Felipe Severino find. Current housing decisions and future intentions to buy versus rent are strongly correlated with these perceptions.
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