This paper assess increasing wage inequality by showing that the top deciles of college earners are enjoying significant relative wage growth, which is underpinned by the link between ex ante math ability, math-heavy college majors and highly quantitative occupations. This mechanism is further...

This paper uses a database covering the universe of French firms for the period 1990-2007 to provide a forensic account of the role of individual ifrms in generating aggregate fluctuations. We set up a simple multi-sector model of heterogeneous firms selling to multiple markets to motivate a...

We analyze the macroeconomic effects of variations in household leverage in an open economy using a quantitative general equilibrium model. The framework features debt by borrowers limited to a fraction of the market value of their real estate holdings, which serve as collateral. Domestic and...

The effective marginal tax rates on returns to capital assets show considerable amount of variation depending on the asset type in the U.S. corporate tax code. For instance, the effective marginal tax rate on the return to communications equipment is 19% whereas it is above 35% for...

There is a negative mean-dispersion relationship between the log of mean annual hours in an occupation and the standard deviation of log annual hours in that occupation. We document this pattern using data from the 1976-2011 Current Population Survey (CPS) and various Survey of Income and...

The 1997-1998 Asian crisis countries experienced drastic collapses of macroeconomic aggregates followed by highly persistent underperformance of economies relative to their pre-crises periods. In this paper, we develop a small open economy model with heterogeneous producers which can explain the...

Poor countries devote the largest fraction of their labor force to agriculture, which is also their least productive sector. This turns out to be key for understanding cross-country disparities in per capita incomes. A large and active literature aims at finding the causes behind these facts....

This paper attributes the exchange-rate disconnect puzzle, which we characterize as the low adjusted R-squared in short-horizon predictive regressions, to omitted `third-country' variables. Using a three-country DSGE exchange rate model, we identify channels through which shocks originating in...

Among developed countries there are large and well-documented differences in earnings inequality and intergenerational earnings mobility. Public education financing systems are investigated as a possible source for these cross-country differences. This paper first documents facts about public...

We study first- and second-order subjective expectations (beliefs) in strategic decision-making. We propose a method to elicit probabilistically both first- and second-order beliefs and apply the method to a Hide-and-Seek experiment. We study the relationship between choice and beliefs in terms...