In this paper, we study the impact of labor mobility on the welfare cost of currency union in an open economy New Keynesian model. We find that the relationship between labor mobility and exchange rate flexibility depends on the source of asymmetric regional shocks. With demand shocks, labor...

Recently, global supply chains are often disrupted because of trade policies and natural disasters. This study simulates the effect of disruption of imports from and exports to various regions on the total production of Japanese firms, incorporating propagation of the economic effect through...

This paper investigates how households smooth consumption against idiosyncratic wage shocks in recessions and expansions. Labour market uncertainty amplifies during recessions, captured through the cross-sectional dispersion of wages. I focus on the relative contribution of two insurance...

How do trade policy shocks affect consumer prices? By constructing a novel dataset with both US import prices and barcode-level consumer prices, I examine the pass-through of import prices into consumer prices and its heterogeneity across consumers. I find that the pass-through is incomplete via...

We examine the impact of export shocks proxied by destination countries’ tariffs on the postmiddle school enrollment of the rural population in China. We complement the literature by examining across-region spillover effects of export shocks through initial migration networks. We find that the...

In many countries, market power in goods markets has increased over the last decades. To examine the implications for monetary policy, we present a menu-cost model with endogenous markups. This model rationalizes the observed increases in market power via productivity increases for some firms....