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Microeconomic Insights @micreconinsights.bsky.social · 7d

The paper finds that higher exposure to wealth taxation causes households to save more as opposed to less. This increase in saving is primarily financed by increased labor earnings, rather than lower consumption.

Microeconomic Insights @micreconinsights.bsky.social · 7d

📕 NEW from @mariusring.bsky.social:

'Wealth Taxation and Household Saving: Evidence from Norway'

Quasi-experimental variation in the Norwegian wealth tax is used to study how wealth taxation affects households’ saving and labor supply behaviour.

Bidding for Firms: Subsidy Competition in the United States | Microeconomic Insights

Microeconomic Insights @micreconinsights.bsky.social · 21d

The average subsidized firm in the data promises to create 1,400 jobs and receives a subsidy worth $150 million over 10 years.

Read here: microeconomicinsights.org/bidding-for-...

State and local governments regularly offer large discretionary subsidies to attract firms, and the accompanying jobs, to their jurisdictions. In fact, this deployment of subsidies is estimated to be ...

Microeconomic Insights @micreconinsights.bsky.social · 21d

The deployment of subsidies is estimated to be one of the largest economic development tools used in the United States. The paper finds that the scope for discretionary subsidies to be an effective tool to reduce geographic inequality in the U.S. is extremely limited.

Microeconomic Insights @micreconinsights.bsky.social · 21d

📕 NEW from Cailin Slattery (Assistant Professor of Economics, UC Berkley):

'Bidding for Firms: Subsidy Competition in the United States'

Firms are the clear winners from subsidy competition.

A better way to pay for college? | Microeconomic Insights

Microeconomic Insights @micreconinsights.bsky.social · Sep 3

"If private firms cannot profitably finance college with equity or state-contingent debt, should the government subsidize these contracts?"

Read here: microeconomicinsights.org/a-better-way...

Economists have long advocated for alternative financial contracts to mitigate the risks of investing in education (Barr et al. 2017; Chapman 2006; Palacios 2004; Zingales 2012). Most famously, Friedm...

Microeconomic Insights @micreconinsights.bsky.social · Sep 3

"The main finding is that adverse selection – the sorting of individuals with worse - than-average outcomes into insurance-like contracts – has unraveled private markets for these products, making them unprofitable for firms to offer."

Welfare Effects of Subsidizing Seasonal Migration | Microeconomic Insights

Microeconomic Insights @micreconinsights.bsky.social · Sep 3

New from Daniel Herbst (Assistant Professor of Economics at the University of Arizona) and Nathaniel Hendren (Harvard University):

'A better way to pay for college?'

There is a better way to fund undergraduate study, according to new research on the US.

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Microeconomic Insights @micreconinsights.bsky.social · Sep 3

Read here: microeconomicinsights.org/welfare-effe...

By the year 2050, around 2.5 billion more people will be living in urban areas than there are now (United Nations, 2018). Around 90% of these new city dwellers will be in Africa and South Asia, expand...

Microeconomic Insights @micreconinsights.bsky.social · Sep 3

Rural-urban migration may be a key pathway out of poverty.

Households that sent a migrant saw big increases in consumption, of around 30% on average per household member.

Our analysis also suggests that families send a migrant out only as a last resort.

Taxing wealth: Some lessons from Colombia | Microeconomic Insights

Microeconomic Insights @micreconinsights.bsky.social · Sep 3

New from David Lagakos‬, @mushfiq-econ.bsky.social and Michael Waugh:

'Welfare Effects of Subsidizing Seasonal Migration'

Migration experiments in rural Bangladesh offer a unique perspective on the potential benefits and costs of out-migration for rural individuals.

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Microeconomic Insights @micreconinsights.bsky.social · Jun 26

New from Juliana Londoño-Vélez (UCLA) and Javier Ávila-Mahecha:

Based on Colombia’s long experience with wealth taxes, a new study reveals both promise and peril.

Read our new article here: microeconomicinsights.org/taxing-wealt...

Yet because few countries levy wealth taxes, relatively little is known about the actual responses of wealthy individuals when governments tax their assets – especially in countries outside Europe. Th...

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Microeconomic Insights @micreconinsights.bsky.social · Apr 28

The findings raise urgent new questions about how labor demand changes as new work emerges, and how AI technologies will reshape tasks and occupations in the decades ahead.

Read here: microeconomicinsights.org/the-race-bet...

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Microeconomic Insights @micreconinsights.bsky.social · Apr 28

Our new article points to an implicit “race” between task displacement and new task creation in displacing and reinstating labor demand, and suggest that automation may now be pulling ahead in this race.

Microeconomic Insights @micreconinsights.bsky.social · Apr 28

New from @davidautor.bsky.social, Caroline Chin, Anna Salomons & Bryan Seegmiller:

Technological change transforms economies and labor markets, reshaping the types of jobs that are available, the wages they pay, and the skills they require

Private monopoly and restricted entry | Microeconomic Insights

Microeconomic Insights @micreconinsights.bsky.social · Feb 25

New from @frankverboven.bsky.social & Biliana Yontcheva:

Comparatively little is known about the impact of geographic entry restrictions and price regulation, which go beyond general occupational licensing requirements.

Read our new article here: microeconomicinsights.org/private-mono...

Occupational licensing regulations are common across many service sectors, including health, education, transportation, and legal services. These regulations affect up to 20-30% of workers in both the...

The role of diagnostic skill: How and why it matters | Microeconomic Insights

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Microeconomic Insights @micreconinsights.bsky.social · Jan 28

Read here: microeconomicinsights.org/the-role-of-...

When making these decisions, the typical expert will begin by assessing the likely effects of their options based on the specific case at hand. For instance, physicians aim to diagnose a patient’s und...

Microeconomic Insights @micreconinsights.bsky.social · Jan 28

These differences are often attributed to variation in decision-maker preferences, sparking calls to standardize decision-making.

The paper suggests an alternative framework where experts differ not only in preferences but also in diagnostic skill, with both shaping decisions.

Microeconomic Insights @micreconinsights.bsky.social · Jan 28

New from Chuan Yu @harvard.edu & David C. Chan and Matthew Gentzkow @stanford.edu:

'The role of diagnostic skill: How and why it matters'

In many settings, expert professionals like physicians and judges make different decisions when handling similar cases.

Expanding renewable energy: lessons from Chile | Microeconomic Insights

Microeconomic Insights @micreconinsights.bsky.social · Dec 19

Read in full: microeconomicinsights.org/expanding-re...

Effective and economical expansion of renewable energy is one of the most urgent challenges for addressing climate change. Along with the transport sector, the electricity sector generates one of the ...

Microeconomic Insights @micreconinsights.bsky.social · Dec 19

Exploring how this market integration changed electricity production, wholesale prices, generation costs, and renewable investments, authors find overall that it increased solar generation by nearly 180%, saved generation costs by 8%, and reduced carbon emissions by 5%.

Microeconomic Insights @micreconinsights.bsky.social · Dec 19

New from Luis E. Gonzales, Koichiro Ito & Mar Reguant:

'Expanding renewable energy: lessons from Chile'

The paper examines the impact of linking two major electricity markets in Chile, which were, until 2017, completely separate, with no interconnection between them.

Worker Beliefs About Outside Options | Microeconomic Insights

Reposted by Microeconomic Insights

Richard Blundell @richardblundell.bsky.social · Nov 20

“workers believe their outside option is much closer to their current wage than it actually is” |
Worker Beliefs About Outside Options | Simon Jäger, Christopher Roth, Nina Roussille, Benjamin Schoefer | Microeconomic Insights |
microeconomicinsights.org/worker-belie...

Firms differ substantially in the wages they pay to similar workers. Standard models of the labor market assume that workers have accurate beliefs about the differences in wages across firms, includin...

Worker Beliefs About Outside Options | Microeconomic Insights

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Microeconomic Insights @micreconinsights.bsky.social · Nov 20

This paper assesses the accuracy of workers’ beliefs about their outside options and explores the consequences of potential misperceptions.

Read here: microeconomicinsights.org/worker-belie...

Firms differ substantially in the wages they pay to similar workers. Standard models of the labor market assume that workers have accurate beliefs about the differences in wages across firms, includin...