Monthly Archives: November 2013

Big Data: New Tricks for Econometrics

From Hal Varian: Nowadays computers are in the middle of almost every economic transaction. These “computer-mediated transactions” generate huge amounts of data, and new tools are necessary to manipulate and analyze this data. This essay offers a brief introduction to … Continue reading

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An Economical Business-Cycle Model

From Pascal Michaillat and Emmanuel Saez: We construct a microfounded, dynamic version of the IS-LM-Phillips curve model by adding two elements to the money-in-the-utility-function model of Sidrauski [1967]. First, real wealth enters the utility function. The resulting Euler equation describes consumption as … Continue reading

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Macroeconomic Determinants of Retirement Timing

From Yuriy Gorodnichenko, Jae Song, and Dmitriy Stolyarov: We analyze lifetime earnings histories of white males during 1960-2010 and categorize the labor force status of every worker as either working full-time, partially retired or fully retired. We find that the fraction of … Continue reading

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Caught in a Revolving Door of Unemployment

From a story by Annie Lowrey in the NYTimes today: “I’ve been turned down from McDonald’s because I was told I was too articulate,” she says. “I got denied a job scrubbing toilets because I didn’t speak Spanish and turned … Continue reading

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Unemployment Insurance and Disability Insurance in the Great Recession

From Andreas Mueller, Jesse Rotstein, and Till von Wachter: Disability Insurance (DI) applications are awards are countercyclical. One potential explanation is that unemployed individuals who exhaust their Unemployment Insurance (UI) benefits use DI as a form of extended benefits. We exploit … Continue reading

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The Cyclicality of the Opportunity Cost of Employment

From Gabe Chodorow-Reich and Loukas Karabarbounis:  The flow opportunity cost of moving from unemployment to employment consists of foregone public benefits and foregone utility from non-working time relative to consumption. Using detailed microdata, administrative data, and the structure of the search and … Continue reading

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Regulating Consumer Financial Products: Evidence from Credit Cards

The NYTimes has an interesting story on this paper from Sumit Agarwal, Souphala Chomsisengphet, Neale Mahoney, and Johannes Stroebel: We analyze the effectiveness of consumer financial regulation by considering the 2009 Credit Card Accountability Responsibility and Disclosure (CARD) Act in … Continue reading

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