Review of Economic Dynamics

Fatih Guvenen · Alisdair McKay · Conor Ryan

Layer 1: Overview Guvenen, McKay, and Ryan estimate a stochastic income process for US male workers that simultaneously matches five empirical regularities from Social Security Administration …

Fan Liang

Layer 1: Overview This paper asks why small firms hold large quantities of liquid assets — cash and cash equivalents that earn low or negative real returns — even when external credit is available. …

Andrew Y. Chen · Francisco Palomino

Layer 1: Overview Chen and Palomino prove a general irrelevance theorem identifying when risk aversion and time-varying risk are irrelevant for key model dynamics in representative-agent macroeconomic …

Axel Gottfries

Layer 1: Overview This paper resolves a long-standing theoretical impasse in labor search models: how to model wage bargaining when workers search on the job (OJS) and the quit rate depends on the …

Antoine Bertheau · Rune Vejlin

Layer 1: Overview Research question and motivation. On-the-job search models typically organize firms along a “job ladder” — a common ranking by workers of available jobs — but they …

Ia Vardishvili

Layer 1: Overview Research question and motivation. US cohorts of establishments born in recessions persistently employ fewer workers at entry and over their life cycle, yet are on average more …

Tristany Armangüé-Jubert · Tancredi Rapone · Alessandro Ruggieri

Layer 1: Overview Research question and motivation. Firms are larger and grow faster over the life cycle in high-income countries, while labor markets in poorer countries are less competitive …

Nezih Guner · Christopher Rauh · Gustavo Ventura

Layer 1: Overview Guner, Rauh, and Ventura document the scope, generosity, distributional impact, and time evolution of means-tested transfers to working-age US households, and provide parametric …

Barton H. Hamilton · Andrés Hincapié · Emma C. Kalish · Nicholas W. Papageorge

Layer 1: Overview This paper asks why medical innovation can widen health disparities even when it unambiguously improves health for everyone who takes it. The authors argue that the standard …

Salomon Garcia-Villegas

Layer 1: Overview This paper develops a quantitative general equilibrium model of the U.S. housing finance system that jointly determines mortgage credit and mortgage-backed security (MBS) issuance, …

Vahagn Jerbashian

Layer 1: Overview This paper estimates the elasticities of substitution between labor, information and communication technology (ICT) and intellectual property (IP) capital, and traditional capital …

Davin Chor · Edwin L.-C. Lai

Layer 1: Overview This paper develops a tractable general equilibrium model of endogenous growth driven by cumulative innovation, and uses it to characterize optimal patent policy — both for patent …

Lukasz A. Drozd · Marcin Kolasa · Jaromir B. Nosal

Layer 1: Overview This paper evaluates five microfounded pricing-to-market (PTM) mechanisms and one reduced-form aggregator in a two-country DSGE model with volatile exchange rates driven by financial …

Scott French · Tess M. Stafford

Layer 1: Overview Research question and motivation: A large empirical literature uses micro data to estimate the intertemporal elasticity of substitution (IES) of labor supply, a parameter crucial for …

Heejeong Kim · Jung Hwan Kim

Layer 1: Overview U.S. outstanding student debt rose roughly 20-fold, from about $50 billion in 1985 to nearly $1 trillion in 2014 (about 7% of GDP), making it the second-largest form of household …

Donggyu Lee

Layer 1: Overview This paper asks whether the Federal Reserve’s unconventional monetary policies (UMP) — specifically quantitative easing (QE) and forward guidance — exacerbated income and …

Jung Sakong

Layer 1: Overview Research question and motivation: Wealth in the US is far more concentrated than income, even among the bottom 99%. In 2013, the next-49% (above the bottom 50%) earned 4.7 times the …

Marc Folch · Luca Mazzone

Layer 1: Overview Research question and motivation: Folch and Mazzone ask how undergraduate student debt shapes three intertwined post-college decisions — whether to pursue a post-bachelor (graduate) …

Sebastian Graves · Victoria Gregory · Lars Ljungqvist · Thomas J. Sargent

Layer 1: Overview Research question and motivation: How does endogenizing retirement (career-length) choice change the labor-supply and human-capital implications of the canonical Heckman, Lochner, …