Monthly Archives: August 2013

Fiscal Stimulus & the Open Economy Relative Multiplier

From a recent draft fiscal stimulus in a monetary union by Emi Nakamura and Jon Steinsson: We exploit regional variation in military spending in the US to estimate the effect of government spending on output in a monetary union. We use … Continue reading

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A Model of the Safe Asset Mechanism (SAM): Safety Traps and Economic Policy

From Caballero and Fahri: The global economy has a chronic shortage of safe assets which lies behind many recent macroeconomic imbalances. This paper provides a simple model of the Safe Asset Mechanism (SAM), its recessionary safety traps, and its policy … Continue reading

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The Decline, Rebound, and Further Rise in SNAP Enrollment: Disentangling Business Cycle Fluctuations and Policy Changes

From Peter Ganong and Jeff Liebman: Approximately 1-in-7 people and 1-in-4 children received benefits from the US Supplemental Nutrition Assistance Program (SNAP) in July 2011, both all-time highs. We analyze changes in SNAP take-up over the past two decades. From 1994 … Continue reading

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Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles

Originally posted on owenzidar:
Dylan Matthews has a nice post on the inequality & skill biased technical change debate between David Autor, who is one of my favorite labor economists, and some folks at EPI. I wanted to highlight this…

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Who Benefits from Technological Change?

Given recent concern about technological change and how it is wrecking the middle class, I thought I’d share a simple illustration of what classical economic models* imply about the relationship between productivity growth and the returns to workers and capital owners. … Continue reading

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Untangling Trade and Technology: Evidence from Local Labor Markets

From David Autor, David Dorn, and Gordon Hanson: We juxtapose the effects of trade and technology on employment in U.S. local labor markets between 1990 and 2007. Labor markets whose initial industry composition exposes them to rising Chinese import competition … Continue reading

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Is Forgiving Student Loans the Worst Idea Ever?

The third pillar of President Obama’s new college affordability plan is “ensuring that student debt remains affordable.” Here’s a bit more detail: The President has proposed allowing all student borrowers to cap their federal student loan payments at 10 percent of … Continue reading

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