Tag Archives: Great Recession

Debt and the Consumption Response to Household Income Shocks

From Scott Baker: This paper exploits a new detailed household dataset with comprehensive financial information on millions of households to investigate the interaction between household balance sheets, income, and consumption during the Great Recession. In particular, I test whether consumption … 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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Moving to Opportunity? Migratory Insurance over the Great Recession

From Danny Yagan: Over the Great Recession, the employment rate in some U.S. cities declined by more than twice the aggregate decline. To what extent did the ability to migrate insure workers against these idiosyncratic local shocks? I answer this … Continue reading

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Arrested Development: Theory and Evidence of Supply-Side Speculation in the Housing Market

From Nathanson and Zwick: This paper incorporates speculation into the standard supply-and-demand framework used to analyze housing booms and busts. Speculation reverses the common intuition that elastic housing supply attenuates housing booms. Housing market frictions make land a more attractive … Continue reading

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The Long Short Run

From Brad Delong (full article here): The problem now is that the natural interest rate – that is, the liquid safe nominal interest rate on short-term US Treasury securities – is less than zero. Thus, the central bank cannot push … 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 More Things Change, the More They Stay the Same: The Safety Net, Living Arrangements, and Poverty in the Great Recession

From Marianne Bitler and Hilary Hoynes: Much attention has been given to the large increase in safety net spending, particularly in Unemployment Insurance and Food Stamps, during the Great Recession. In this paper we examine the relationship between poverty, the social and … Continue reading

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Long-Term Unemployment and the Great Recession: The Role of Composition, Duration Dependence, and Non-Participation

From Kory Kroft, Fabian Lange, Larry Katz, and Matt Notowidigdo: We explore the extent to which composition, duration dependence, and non-participation can account for the sharp increase in long-term unemployment (LTU) during the Great Recession. We first show that compositional shifts in … 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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