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...

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 extends a New Keynesian model to include roles for currency and deposits as competing sources of liquidity services demanded by households. It shows that, both qualitatively and quantitatively, the Barnett critique applies: While a Divisia aggregate of monetary services tracks the...

We document the consequences of losing a job across countries using a harmonized research design. Workers in Denmark and Sweden experience the lowest earnings declines following job displacement, while workers in Italy, Spain, and Portugal experience losses three times as high. French and...

We evaluate the effect on newly arrived refugees' employment of a policy, introduced in Denmark in 2013, that matched refugees to occupations with local labor shortages after basic training for those jobs. Leveraging the staggered roll-out across municipalities, we find that the policy increased...

We use rich administrative data from Denmark to assess medical theories that autism spectrum disorder (ASD) is a heritable condition transmitted through underlying parental skills. Positing that occupational choices reflect skills, we create two separate occupation-based skill measures and find...

Focusing on bipolar disorder (BD), we investigate the link between mental health, creativity, and wealth. Analyzing population data for Denmark, we find that people with BD are more likely to be musicians, but less likely to hold other creative jobs than the population. Healthy siblings of...

This paper investigates the career effects of mental health, focusing on depression, schizophrenia, and bipolar disorder (BD). Individual-level registry data from Denmark show that these disorders carry large earnings penalties, ranging from 34 percent for depression and 38 percent for BD to 74...

The paper analyzes consumption decisions of retired workers, using Danish register data. A major puzzle, which motivates much of the analysis below, is that wealth actually increases for a large fraction of the people in our data. One would expect that wealth accumulated before retirement would...

This paper provides evidence from the US and Denmark that managers with a business degree ("business managers") reduce their employees' wages. Within five years of the appointment of a business manager, wages decline by 6% and the labor share by 5 percentage points in the US, and by 3% and 3...