The opening up of an economy to the rest of the world has generally been considered an integral part of economic reform aimed at increasing the role of markets. Until recently, however, very little discussion was devoted to the order in which the capital and current account should be liberalized...

This paper explores the role of restrictions on the use of international reserves as economic sanctions. We develop a simple model of the strategic game between a sanctioning (creditor) country and a sanctioned (debtor) country. We show how the sanctioning country should impose restrictions...

Research on the social safety net examines its effects on recipients and their families. We show that these effects extend beyond recipients' families. Using a regression discontinuity design and administrative data, we study a Danish policy that cut welfare benefits for refugees, increasing...

Using data on prescriptions for cholesterol-lowering drugs (statins), we study differences in the treatments chosen by Danish physicians for themselves versus for their patients. We estimate that physicians discount patient health benefit relative to their own, valuing the additional potency of...

This paper explores the symbiotic relationship between transformative entrepreneurs and inventors, which is crucial for economic growth. We utilize microdata from Denmark to demonstrate that while the relationship between IQ and general entrepreneurship tends to be negative, it is strongly...

We examine the labor market effects of AI chatbots using two large-scale adoption surveys (late 2023 and 2024) covering 11 exposed occupations (25,000 workers, 7,000 workplaces), linked to matched employer-employee data in Denmark. AI chatbots are now widespread--most employers encourage their...

This paper examines if active labor market programs help unemployed job seekers find jobs using a novel random caseworker instrumental variable (IV) design. Leveraging administrative data from Denmark, our identification strategy exploits that (i) job seekers are quasi-randomly assigned to...

This paper develops a new approach to measuring non-wage amenities and com-pensating differentials in the labor market. Using a survey of 20,000 job movers in Denmark, we elicit workers' reservation wage to return to their previous jobs. Our sample contains a large, connected network of firms,...

This paper shows that effective reskilling can have profound mental health benefits for workers and their partners. Using institutional variation in access to higher education after work accidents in Denmark, we find that reskilling prevents one case of depression for every three injured...