This paper analyzes the impact of a balanced budget rule (BBR) on government financing costs. We construct measures of BBR at the US state government level, and find that states with tighter BBRs are associated with significantly lower state government bond spreads. Furthermore, the credit...

This paper revisits the canonical assumption of nonconvex capital adjustment costs in lumpy investment models as in Khan and Thomas (2008), which are assumed to follow a uniform distribution from zero to an upper bound, without distinguishing between the mean and the variance of the...

We investigate the role of migration and housing constraints in determining income inequality within and across Chinese cities. Combining microdata and a spatial equilibrium model, we quantify the impact of the massive spatial reallocation of workers and the rapid growth of housing costs on the...