Dirk Krueger @IERJournal
Twitter account of the International Economic Review economics.sas.upenn.edu/ier Philadelphia, PA; Osaka, Japan Joined March 2022-
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U.S. interstate banking deregulation in the 1980s raised establishment entry and real GDP. Our general equilibrium model shows how stronger bank competition expands credit access, influences entrepreneurs’ occupational choices, and reallocates labor toward more productive firms.
The International Economic Review has just published a new exciting paper by Toshihiko Mukoyama and Gang Zhang on Entrepreneurship and Financial Deregulation. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…
When is firm entry efficient with heterogeneous firms and endogenous markups? We show that market entry is efficient in one-sector and symmetric two-sector Melitz-Ottaviano economies, but demand asymmetry can drive excessive entry into high-demand sectors.
The International Economic Review has just published a new exciting paper by Kyle Bagwell and Seung Hoon Lee on Entry and Welfare in General Equilibrium With Heterogeneous Firms and Endogenous Markups. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…
We develop a rational Walrasian model of greater-fool bubbles where agents follow and reinforce momentum in a market-timing game. Signal extraction prevents unraveling, so finite bubbles persist without irrational traders, knife-edge conditions, or opaque market clearing.
The International Economic Review has just published a new exciting paper by Luis Araujo and Antonio Doblas-Madrid on Rational Expectations Fools' Bubbles. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…
College loans expand education access but may distort human capital investment through repayment burdens. Using a structural model on NLSY79 data, we find income-driven repayment increases education, lifetime earnings, welfare, and government revenue vs. fixed repayment plans.
The International Economic Review has just published a new exciting paper by Chao Fu, Hsuan-Chih Lin and Atsuko Tanaka on College Loans and Human Capital Investment. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…
Tariffs generate different outcomes across US states. States specializing in industries protected from foreign competition may benefit, others may lose. We show how regional economic structure shapes distribution of gains & losses from trade policy, states’ preferences toward it
The International Economic Review has just published a new exciting paper by Ana Maria Santacreu, Michael Sposi and Jing Zhang on What Determines State Heterogeneity in Response to U.S. Tariff Changes?. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…
The paper shows that in heterogeneous agent incomplete markets models the price level is determined from the asset market clearing condition. Fiscal and monetary policy then jointly and uniquely determine the finite steady-state price level and the inflation rate.
The International Economic Review has just published a wonderful paper by the late Marcus Hagedorn (with special thanks to Iourii Manovskii) on A Demand Theory of the Price Level. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…
Are men & women evaluated differently? Yes! Erkal et al. refer to this as the “gender criteria gap”. Men’s bonuses & penalties are driven by both outcomes & beliefs about their actions. Women are evaluated based on outcomes only; beliefs about their intentions carry no weight.
The International Economic Review has just published a new exciting paper by Nisvan Erkal, Lata Gangadharan and Boon Han Koh on Gender Criteria Gap in Evaluation: Role of Perceived Intentions and Outcomes. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…
This paper studies a novel two-way feedback between credit and labor market frictions. Collateral constraints amplify capital demand volatility, affecting labor demand. Search frictions damp wage adjustment, increasing net worth volatility and feeding back into capital demand.
The International Economic Review has just published a new exciting paper by Yulia Moiseeva on The Interaction Between Credit and Labor Market Frictions. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…
How does labour market monopsony affect the transition path and gains, following trade and FDI liberalisation? Monopsony gives welfare gains that are 4x larger to tariff reduction, while leading to welfare losses from FDI liberalisation.
International Economic Review has just published a new exciting paper by Priyaranjan Jha, Antonio Rodriguez-Lopez and Adam Hal Spencer on Labor Market Monopsony Power and the Dynamic Gains to Openness Reforms. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…
We study Prohibition’s repeal and its effects on decentralized liquor policy. Combining new Texas roll-call data with public referenda, we estimate a multidimensional probabilistic voting model and show decentralization aligned policy with local preferences and improved welfare.
International Economic Review has just published new exciting paper by Andrew Arnold and Holger Sieg on The Decentralization of Liquor Policies in Texas During the Post-Prohibition Era. It is available through @WileyEconomics here: doi.org/10.1111/iere.7… Object Identifier (DOI)
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