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We study how individual unemployment expectations are shaped and updated using a unique longitudinal survey data set with subjective unemployment expectations. The survey data is linked with third-party reported administrative data on unemployment realizations, such that we are able to examine...
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We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store-or-sow"" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low investment, or a ""volatility trap."" Namely, big savers...
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Tax administrations use machine learning to predict risk scores as a basis for selecting individual taxpayers for audit … compliance effects of audits among high-risk wage earners. We exploit a sharp audit assignment discontinuity in Norway based on … individual tax payers risk score. Additional data from a random audit allow us to estimate how the audit effect vary across the …
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