Tag Archives: Growth

Growth in Cities and Countries

From Chang-Tai Hsieh and Enrico Moretti: A large micro literature has documented the local forces leading to growth and decline of cities. This paper measures the consequences of these local forces on aggregate output and welfare. We use a Rosen-Roback model of … Continue reading

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Summers: We haven’t done it in 15 years and Japan hasn’t done it in a generation

Starts around the 9 min mark. HT: Mark Thoma

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Heterogeneous Mark-Ups, Growth and Endogenous Misallocation

From Michael Peters: The recent work on misallocation argues that aggregate productivity in poor countries is low because various market frictions prevent marginal products from being equalized. By focusing on such allocative inefficiencies, misallocation is construed as a purely static … Continue reading

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Weekend Readings

1. Taxation and Saving – A Retrospective from Alan Auerbach 2. All men are created unequal – the economist on Piketty’s new book 3. Dealing with the Financial Crisis and the Recession from Brad Delong 4. The return of “patrimonial capitalism”: review of … Continue reading

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An argument for studying macroeconomics

Rather than answering million or billion dollar questions like microeconomists, macroeconomists try to answer trillion dollar questions. E.G. Why is actual output below potential output & when (or will) it come back to trend? From Yuriy Gorodnichenko (both the idea … Continue reading

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Inequality, the Allocation of Opportunity, and U.S. Economic Growth

Chang-Tai Hsieh, Erik Hurst, Peter Klenow, and Chad Jones have a recent paper on the allocation of talent and US economic growth in which they measure the macroeconomic consequences of reduced “occupational frictions” faced by women and blacks in the labor … Continue reading

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Why Voters Respond Primarily to the Election-Year Economy

Here’s an interesting paper by Gabriel Lenz and Andrew Healy: ABSTRACT: According to numerous studies, the election-year economy influences presidential election results far more than cumulative growth throughout the term. Here we describe a series of surveys and experiments that point to … Continue reading

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The Pace of the Recovery: Output and Employment Growth Since 1985

Laura Tyson has a piece today on the slow pace of the recovery: Since 2010, annual growth of gross domestic product has averaged about 2.1 percent. This is less than half the average pace of recoveries from previous recessions in … Continue reading

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Large-Scale Asset Purchases by Jeremy Stein

Here’s Greg Ip on Jeremy Stein’s recent LSAP speeches (Oct 11, Nov 30): If Mr Stein’s story is right, we should expect to see corporations exploiting the drop in long-term rates to refinance short-term debt and repurchase stock but not boost … Continue reading

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Tax Cuts for Whom? Heterogeneous Effects of Income Tax Changes on Growth & Employment

Here are slides from my 10/1/2012 presentation at Berkeley. Abstract: This paper investigates how tax changes for different income groups affect macroeconomic activity. Using historical tax return data from NBER’s TAXSIM, I construct a measure of who received (or who paid … Continue reading

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