Results

CEP discussion paper

International trade in an uncertain world

We develop a tractable quantitative model of international trade in which agents make bilateral investments in resilience under general equilibrium uncertainty. Under both complete and incomplete financial markets, we sh...Read more...

CEP discussion paper

What is the public?s social welfare function?

Optimal public policy requires a social welfare function defined over individual utilities. While there is substantial research on income-based social welfare functions, no published study has directly elicited public pr...Read more...

CEP discussion paper

Counting the costs: a quantitative assessment of Brexit?s effect on UK regional economies

This paper examines the implications of the EU-UK Trade and Cooperation Agreement (TCA) using a dynamic spatial general equilibrium model. Unlike previous studies that primarily projected potential impacts of Brexit base...Read more...

CEP discussion paper

Evading the ban: smuggling, pollution, and the welfare effects of China?s waste import restrictions

While import restrictions are increasingly deployed to achieve non-trade objectives such as environmental protection, they often create distortions and leakage through illicit trade. We examine this trade-off in the cont...Read more...

CEP discussion paper

The economics of tariffs

A central insight from neoclassical economics is that international trade operates like an improvement in production technology. It generates mutual aggregate welfare gains for countries as a whole, but creates winners a...Read more...

CEP discussion paper

The economics of architecture

We illustrate the coordination problem in the provision of distinctive architectural design that arises from design externalities within a quantitative model. To quantify the model, we conduct a quantitative review of a ...Read more...

Journal article

SERIEs:

Paternity leave in Spain

Between 2017 and 2021, Spain progressively extended paternity leave from 2 to 16 weeks, equalizing it with maternity leave and introducing mandatory weeks. A 2018 reform also allowed fathers to split their leave. Using a...Read more...

CEP discussion paper

Accommodating emerging giants in the global economy

How has aggregate income and welfare in the United States been affected by globalization and rapid productivity growth in emerging economies? We use the class of constant elasticity trade models to provide quantitative e...Read more...

Journal article

Review of Economic Studies:

Temporal-difference estimation of dynamic discrete choice models

We study the use of Temporal-Difference learning for estimating the structural parameters in dynamic discrete choice models. Our algorithms are based on the conditional choice probability approach but use functional appr...Read more...

Journal article

American Economic Journal: Economic Policy:

The making of civic virtues: a school-based experiment in three countries

This paper shows that schools can foster the transmission of civic virtues by helping students to develop concrete, democratically chosen, collective projects. We draw on a RCT implemented in 200 middle schools in three ...Read more...

Journal article

American Economic Journal: Applied Economics:

Background matters, but not whether parents are immigrants: outcomes of children born in Denmark

In Europe, the children of migrants often have worse economic outcomes than those with local-born parents. This paper shows that children born in Denmark with immigrant parents (first-generation locals) have lower earnin...Read more...

Chapter

WELLBY

in Elgar Encyclopedia of Behavioural and Experimental Economics

The WELLBY is a measure of individual subjective wellbeing, as judged by individuals themselves, capturing both the quality of life and the length of life. We outline its use for measuring social progress and for social ...Read more...

Journal article

The Review of Economics and Statistics:

Happy to help: welfare effects of a nationwide volunteering programme

We study the wellbeing returns from volunteering in England's National Health Service (NHS) Volunteer Responders, set up in response to Covid-19. Using linked survey and administrative data, we exploit the oversubscripti...Read more...

CEP discussion paper

Empirical welfare analysis with hedonic budget constraints

We analyze demand settings where heterogeneous consumers maximize utility for product attributes subject to a nonlinear budget constraint. We develop nonparametric methods for welfare-analysis of interventions that chang...Read more...

Blog

Politics and Policy:

Can Starmer avoid the mistakes of the past?

Many think that the UK's crisis is the result of a series of mistakes individual prime ministers made: Boris Johnson, Theresa May, Liz Truss. But a deeper look reveals the source of these mistakes: the ideology of rampan...Read more...

Blog

British Politics and Policy:

What economists think of Labour's economic policy

The UK will soon have an election and, if the polls are right, Labour will take power for the first time since 1997. There are many similarities between now and then. As in 1997, the Conservative party look tired, voters...Read more...

Journal article

Journal of Economic Behavior and Organization:

Where does money matter more?

There is much still to learn about the relationship between income and well-being, and in particular how this may depend on the economic and social context. We use Russian data to estimate individual Welfare Functions of...Read more...

Journal article

American Economic Journal: Applied Economics:

Measuring absolute income mobility: lessons from North America and Europe

We use linked parent-child administrative data for five countries in North America and Europe, as well as detailed survey data for two more, to investigate methodological challenges in the estimation of absolute income m...Read more...

Blog

LSE British Politics and Policy:

Why household income doesn't tell the full story on individual wellbeing

The literature on inequality often focuses on household income, but this measure has several limitations for assessing individual wellbeing. Tim Obermeier develops a new collective household model which simultaneously ac...Read more...

CEP discussion paper

Individual welfare analysis: a tale of consumption, time use and preference heterogeneity

How accurately does household income reflect the well-being of the individuals living within the household? Looking at household income does not take unequal consumption sharing within families, the value of time use (le...Read more...

Journal article

Fiscal Studies:

New approaches to measuring welfare

Economics has traditionally understood 'welfare' (what makes a life go well) as the satisfaction of preference. This conceptualisation of welfare is typically measured using revealed preferences, proxied through income a...Read more...

Journal article

AEA Papers and Proceedings:

The local labor market effects of modern manufacturing capital: evidence from France

Using an event study methodology and comprehensive micro data from the French manufacturing sector, we analyze the local labor market effects of investments in modern manufacturing capital, including modern automation te...Read more...

Journal article

American Economic Review:

Globalization and pandemics

We provide theory and evidence on the relationship between globalization and pandemics. Business travel facilitates trade and travel leads to human interactions that transmit disease. Trade-motivated travel generates an ...Read more...

Journal article

Journal of Economic Behavior and Organization :

Should bads be inflicted all at once, like Machiavelli said? Evidence from life-satisfaction data

Is wellbeing, measured by life satisfaction, higher if the same number of negative events is spread out rather than bunched in time? Is it better if positive events are spread out or bunched? We answer these questions em...Read more...

CEP discussion paper

Non-tariff barriers and consumer prices: evidence from Brexit

Non-Tariff Barriers (NTBs) are the main policy impediment to international trade, yet little is known about their pass-through to prices. This paper exploits the Brexit trade policy shock to quantify how NTBs affect cons...Read more...

CEP discussion paper

Nonparametric measurement of long-run growth in consumer welfare

How should we measure long-run changes in consumer welfare? This paper proposes a nonparametric approach that is valid under arbitrary preferences that depend on observable consumer characteristics, e.g. when expenditure...Read more...

Blog

VoxTalks Economics:

Levelling up Europe's left-behind places (podcast)

Recorded live at CEPR Paris Symposium 2022: Inequality isn't just between individuals, but between regions too. Henry Overman explains to Tim Phillips why these disparities exist, why they are so persistent, and whether ...Read more...

Chapter

The effects of automation on labor demand: a survey of the recent literature

in Robots and AI - a new economic era

Robots and artificial intelligence (AI) are powerful forces that will likely have large impacts on the size, direction, and composition of international trade flows. This book discusses how industrial robots, automation,...Read more...

Blog

LSE Covid-19:

What we learnt about the Covid economy

In spring 2020, many countries imposed radical, urgent actions including lockdowns to protect their citizens' health - but there was also a need to protect people from the worst of the ensuing economic storm. Academics a...Read more...

Journal article

Journal of Economic Perspectives:

Should we insure workers or jobs during recessions?

What is the most efficient way to respond to recessions in the labor market? To this question, policymakers on the two sides of the pond gave diametrically opposed answers during the COVID-19 crisis. In the United States...Read more...

Blog

VoxEU:

The hidden costs of incentivising later retirement

Over the past two decades, many countries have reformed their public pension systems in pursuit of desirable fiscal effects, often by introducing or strengthening incentives for later retirement. However, the welfare eff...Read more...

Blog

LSE British Politics and Policy:

The progressive quandary: how to design an immigration policy that balances competing objectives

There is a tension between strong employment rights, a supportive welfare state, equal rights for migrants and locals, and an open, non-selective immigration policy that creates hard decisions for progressive politicians...Read more...

Blog

LSE Business Review:

Will the US child tax credit reduce poverty and improve outcomes for children and parents?

The American Rescue Plan Act of 2021 temporarily increased the value of the child tax credit from $2,000 to $3,000 for children aged 6-16 and to $3,600 for younger children. To date, the Biden administration has been una...Read more...

Blog

LSE Business Review:

What is the optimal minimum wage?

With reports from the European Commission, the UK Treasury advocating significant increases in minimum wage levels, Gabriel Ahlfeldt, Duncan Roth, and Tobias Seidel explore whether such ambitious minimum wage increases i...Read more...

CEP discussion paper

Optimal minimum wages

We develop a quantitative spatial model with heterogeneous firms and a monopsonistic labour market to derive minimum wages that maximize employment or welfare. Quantifying the model for German micro regions, we find that...Read more...

Blog

VoxEU:

Social insurance policies in turbulent times: short-time work versus unemployment insurance

While the US aggressively extended generosity of unemployment insurance in the face of the Covid-19 pandemic, Europe heavily subsidised reductions in hours worked and temporary layoffs through short-time work or similar ...Read more...

CentrePiece article

Happy to help: NHS volunteering in Covid-19 times

The Covid-19 crisis prompted thousands to register as NHS Volunteer Responders, helping vulnerable people with small daily tasks like shopping. Christian Krekel and colleagues find big increases in wellbeing among those ...Read more...

Journal article

Oxford Review of Economic Policy:

Education and management practices

The empirical management literature has found that the education of both managers and the workforce more generally appears to be an important driver of better management practices. This article sets out how such relation...Read more...

Blog

LSE Covid-19:

Happy to help: how a UK micro-volunteering programme increased people's wellbeing

Levels of wellbeing increased significantly for individuals who participated in the NHS Volunteer Responders (NHSVR) programme, with effects lasting months after the volunteering period had ended, write Paul Dolan, Chris...Read more...

CEP discussion paper

Happy to help: welfare effects of a nationwide volunteering programme

We study the wellbeing benefits from volunteering in England's National Health Service (NHS) Volunteer Responders programme, which was set up in response to the Covid-19 pandemic. Using combined survey and administrative...Read more...

Blog

VoxEU:

The trade and welfare benefits of deep trade agreements

Deep trade agreements are widespread and have taken the world beyond tariff liberalisation in goods trade. As the importance of global supply chains and the services sector increased across the world, shallow tariff redu...Read more...

CEP discussion paper

Quality of life in a dynamic spatial model

We develop a dynamic spatial model in which heterogeneous workers are imperfectly mobile and forward-looking and yet all structural fundamentals can be inverted without assuming that the economy is in a stationary spatia...Read more...

Journal article

The Economic Journal:

The impact of terrorism on individual well-being: evidence from the Boston Marathon bombing

A growing literature has concluded that terrorism affects the economy, yet less is known about its impact on individual welfare. This article estimates the impact of the 2013 Boston marathon bombing on well-being, exploi...Read more...

Journal article

Economic Policy:

School choice during a period of radical school reform. Evidence from academy conversion in England

We study how demand responds to the rebranding of existing state schools as autonomous 'academies' in the context of a radical and large-scale reform to the English education system. The academy programme encouraged scho...Read more...

CEP discussion paper

International friends and enemies

We develop sufficient statistics of countries? bilateral income and welfare exposure to foreign productivity shocks that are exact for small shocks in the class of models with a constant trade elasticity. For large shock...Read more...

Journal article

Behavioural Public Policy:

A happy choice: wellbeing as the goal of government

In this article, we lay out the basic case for wellbeing as the goal of government. We briefly review the history of this idea, which goes back to the ancient Greeks and was the acknowledged ideal of the Enlightenment. W...Read more...

Journal article

Behavioural Public Policy:

A happy choice: a response to the responses

We are very happy to see the engagement of so many eminent scholars in our field with our modest proposal for how to proceed with wellbeing policy formation in the UK. We are also heartened by the apparent endorsement of...Read more...

CEP discussion paper

Machiavelli versus concave utility functions: should bads be spread out or concentrated?

Is wellbeing higher if the same number of negative events is spread out rather than bunched in time? Should positive events be spread out or bunched? We answer these questions exploiting quarterly data on six positive an...Read more...

CentrePiece article

People, places and politics: the challenge of 'levelling up' the UK

As has been much discussed since the election, economic performance varies widely among the towns, cities and regions of the UK. Henry Overman argues that policies to address these spatial disparities should be judged on...Read more...

CEP election analysis

#GE2019Economists: the research evidence on key issues for voters in the 2019 UK General Election

The general election of 2019 was called after negotiations over how the UK should leave the European Union became increasingly tortuous. While Brexit may have been the trigger for the election, it was far from being the ...Read more...

Blog

LSE Business Review:

Brexit will leave the UK worse off economically in all scenarios

Since the UK voted to leave the European Union in June 2016, Brexit has dominated UK politics and economic policy. Three and a half years after the referendum, the UK is yet to leave the EU, there is no certainty over if...Read more...

Blog

LSE Brexit:

Economic consequences of Brexit are overwhelmingly negative

The economic consequences of Brexit are overwhelmingly negative, estimate Swati Dhingra and Thomas Sampson (LSE). The more the UK distances itself from the EU?s economic institutions and policies, the greater will be the...Read more...

Blog

LSE Business Review:

John Van Reenen: `A lot of promises are just smoke and mirrors?

As director of LSE's Centre for Economic Performance (CEP) up to 2016, British economist John Van Reenen led a team of academic researchers who produced detailed analysis of the consequences a divorce from the European U...Read more...

CEP election analysis

Brexit economics

Since the UK voted to leave the European Union in June 2016, Brexit has dominated UK politics and economic policy. Three and a half years after the referendum, the UK is yet to leave the EU, there is no certainty over if...Read more...

CEP election analysis

People, places and politics

Economic performance varies widely between the towns, cities and regions of the UK. On some measures, this variation has widened since the financial crisis. These disparities have already proved to be a key theme in the ...Read more...

CEP election analysis

The labour market

The UK labour market, at first glance, seems to be playing at Dr Jekyll and Mr Hyde. Employment (in terms of both levels and rates) is at record highs, yet wage growth has been extraordinarily weak. One view is that thes...Read more...

CEP election analysis

Social mobility

Debates over how to improve life prospects for people irrespective of their family background promise to be a key theme in the run-up to the 2019 General Election. This briefing summarises evidence on social mobility fro...Read more...

Journal article

Economic Journal:

Can helping the sick hurt the able? Incentives, information and disruption in a welfare reform

The UK Jobcentre Plus reform sharpened bureaucratic incentives to help disability benefit recipients (relative to unemployment insurance recipients) into jobs. In the long run, the policy raised exits off disability bene...Read more...

CEP discussion paper

A happy choice: wellbeing as the goal of government

In this article, we lay out the basic case for wellbeing as the goal of government. We briefly review the history of this idea, which goes back to the ancient Greeks and was the acknowledged ideal of the Enlightenment. W...Read more...

CEP discussion paper

When income effects are large: labor supply responses and the value of welfare transfers

I estimate the long-run income effect of welfare transfers on individual labor supply. Using Italian administrative data on the universe of survivor insurance recipients, I implement a regression discontinuity design aro...Read more...

Journal article

Journal of Political Economy:

Monopolistic competition and optimum product diversity under firm heterogeneity

Empirical work has drawn attention to the high degree of productivity differences within industries and their role in resource allocation. This paper examines the allocational efficiency of such markets. Productivity dif...Read more...

Journal article

Journal of Economic Behavior and Organization:

Identity, non-take-up and welfare conditionality

We study a model in which poor individuals of different types request a service and may suffer from the discrepancy between the service provider's beliefs and their true type. The utility loss resulting from such a discr...Read more...

Journal article

Research in Economics:

Monopolistic competition and optimum product selection: why and how heterogeneity matters

After some decades of relative oblivion, the interest in the optimality properties of monopolistic competition has recently re-emerged due to the availability of an appropriate and parsimonious framework to deal with fir...Read more...

Journal article

Economic Policy:

The costs and benefits of leaving the EU: trade effects

This paper estimates the welfare effects of Brexit in the medium to long run, focusing on trade and fiscal transfers.We use a standard quantitative general equilibrium trade model with many countries and sectors and trad...Read more...

Journal article

American Economic Review:

Relational knowledge transfers

We study how relational contracts mitigate Becker's classic problem of providing general human capital when training contracts are incomplete. The firm's profit-maximizing agreement is a multiperiod apprenticeship in whi...Read more...

CEP discussion paper

Goods and factor market integration: a quantitative assessment of the EU enlargement

The economic effects from labor market integration are crucially affected by the extent to which countries are open to trade. In this paper we build a multi-country dynamic general equilibrium model with trade in goods a...Read more...

CEP election analysis

#GE2017Economists: The Research Evidence on Key Issues for Voters in the 2017 UK General Election

The unexpected UK general election of 2017 was intended to be all about Brexit, one that will give the incoming government a mandate to negotiate the terms of the UK?s exit from the European Union (EU). But many other pu...Read more...

CEP election analysis

Brexit as Climate Policy: The Agenda on Energy and the Environment

The Great Recession and a sluggish economic recovery were instrumental in meeting the legally binding climate change targets that the UK has set for itself. But without more drastic policy interventions, it is unlikely t...Read more...

CEP election analysis

The UK's New Industrial Strategy

`Industrial strategy? has returned to the policy agenda, with the government recently setting out its plans in a Green Paper, and dedicated sections appearing in the election manifestos of all three main parties. Until r...Read more...

CEP election analysis

The NHS and Social Care: Prospects for Funding, Staffing and Performance into the 2020s

Health featured prominently in the 2016 referendum on the UK?s membership of the European Union (EU), with the Leave campaign?s claim that Brexit would mean that #350 million extra money per week could be transferred fro...Read more...

CEP election analysis

Real Wages and Living Standards in the UK

Since the global financial crisis of 2007/08, workers? real wages and family living standards in the UK have suffered to an extent unprecedented in modern history. Real wages of the typical (median) worker have fallen by...Read more...

CEP discussion paper

The costs and benefits of leaving the EU: trade effects

This paper estimates the welfare effects of Brexit, focusing on trade and fiscal transfers. We use a standard quantitative general equilibrium trade model with many countries and sectors and trade in intermediates, as in...Read more...

CEP discussion paper

Distorted monopolistic competition

We characterize the equilibrium and optimal resource allocations in a general equilibrium model of monopolistic competition with multiple asymmetric sectors and heterogeneous firms. We first derive general results for ad...Read more...

CEP discussion paper

A unified approach to estimating demand and welfare

The measurement of price changes, economic welfare, and demand parameters is currently based on three disjoint approaches: macroeconomic models derived from time-invariant utility functions, microeconomic estimation base...Read more...

Journal article

Journal of International Economics:

Goods trade, factor mobility and welfare

We develop a quantitative spatial model that incorporates a rich geography of trade costs and labor mobility with heterogeneous worker preferences across locations. We provide comparative statics for the unique equilibri...Read more...

CEP Brexit analysis

The consequences of Brexit for UK trade and living standards

The economic consequences of leaving the EU will depend on what policies the UK adopts following Brexit. But lower trade due to reduced integration with EU countries is likely to cost the UK economy far more than is gain...Read more...

CEP discussion paper

Relational knowledge transfers

An expert with general knowledge trains a cash-constrained novice. Faster training increases the novice?s productivity and his ability to compensate the expert; it also shrinks the stock of knowledge yet to be transferre...Read more...

CEP Brexit analysis

Life after Brexit : what are the UK?s options outside the European Union?

Suppose the UK votes to leave the European Union (EU): what happens next? This report outlines some of the options for the UK outside the EU and discusses the costs and benefits of each alternative....Read more...

CEP discussion paper

Contracting and the division of the gains from trade

This paper examines the microstructure of import markets and the division of the gains from trade among consumers, importers and exporters. When exporters and importers transact through anonymous markets, double marginal...Read more...

CEP discussion paper

European identity and redistributive preferences

How important is spatial identity in shifting preferences for redistribution? This paper takes advantage of within-country variability in the adoption of a single currency as an instrument to examine the impact of the re...Read more...

Blog

LSE British Politics and Policy:

Where is the real Manifesto for Growth?

As voters go to the polls in a knife-edge election, Labour?s popularity on the NHS is counter-balanced by the Tory?s reputation for economic competence. But is this reputation deserved? John Van Reenen writes that a real...Read more...

CEP election analysis

#ElectionEconomics: The Research Evidence on Key Issues for Voters in the 2015 UK General Election

Please see the CEP #ElectionEconomics report(Paper 1)and the Executive Summary (Paper 2) that cover all the election 2015 briefings, discussing the research evidence on 15 of the UK's key policy battlegrounds: immigratio...Read more...

CEP discussion paper

Can helping the sick hurt the able? Incentives, information and disruption in a welfare reform

The UK Jobcentre Plus reform sharpened bureaucratic incentives to help disability benefit recipients (relative to unemployment insurance recipients) into jobs. In the long-run, the policy raised disability exits by 10% a...Read more...

Blog

LSE British Politics and Policy:

The NHS: Promises and productivity

In the general election debate about healthcare, all the parties are seeking to portray an NHS protected from major public sector expenditure cuts, with expansion in some areas. But according to Alistair McGuire and John...Read more...

CEP election analysis

Health: How Will the NHS Fare in a Cold Climate?

With the NHS a central issue of the 2015 general election, the parties are debating funding, the form of provision, quality and productivity. This paper looks at the NHS record under the coalition government and consider...Read more...

Blog

LSE British Politics and Policy:

Regarding public service spending, the UK electorate faces real choices this election

The possible spending plans of Labour and the Tories illustrate the fact that there are real choices to be made at the election, writes John Van Reenen. When viewed over the longer term, the state of the UK economy is no...Read more...

CEP election analysis

Should We Stay or Should We Go? The economic consequences of leaving the EU

We analyze the effects of Brexit on the UK economy. The most important economic consequence of Brexit would likely be reduced trade with EU countries. We consider an optimistic scenario with relatively small increases in...Read more...

Blog

LSE British Politics and Policy:

Austerity in the UK: past, present and future

In this article, John Van Reenen looks at the UK?s economic performance since the global financial crisis and assesses the impact of austerity policies. He also examines the fiscal plans of the three major parties over t...Read more...

CEP election analysis

Austerity: Growth Costs and Post-Election Plans

The austerity programme of the coalition government knocked at least one percent per year off growth in the first two years of this Parliament. In retrospect, this looks like a mistake and the slower pace of austerity in...Read more...

Journal article

The World Bank Economic Review:

The political economy of trade policy: gone for good? Subsidies with export share requirements in China: 2002-13

This paper presents a simple model of subsidies with export share requirements (ESR) in a heterogeneous firm environment. A two-country general equilibrium version of the model with a single 100% ESR is calibrated using ...Read more...

CEP policy analysis

Brexit or Fixit? The Trade and Welfare Effects of Leaving the European Union

Since a speech by the Prime Minister in January 2013 , the Conservative party has been committed to holding a referendum on the UK?s membership of the European Union (EU) in 2017. So this is a good moment to consider wha...Read more...

CEP discussion paper

Missing gains from trade?

The theoretical result that there are welfare gains from trade is a central tenet of international economics. In a class of trade models that satisfy a 'gravity equation,' the welfare gains from trade can be computed usi...Read more...

CEP discussion paper

Mental illness and unhappiness

This paper is a contribution to the second World Happiness Report. It makes five main points: 1. Mental health is the biggest single predictor of life-satisfaction. This is so in the UK, Germany and Australia even if men...Read more...

CEP election analysis

Welfare to Work: The Evidence on Labour?s New Deal Policies

Read more...

CEP discussion paper

Monopolistic Competition and Optimum Product Selection: Why and How Heterogeneity Matters

After some decades of relative oblivion, the interest in the optimality properties of monopolistic competition has recently re-emerged due to the availability of an appropriate and parsimonious framework to deal with fir...Read more...

Blog

LSE European Politics and Policy Blog:

No Triple Dip does not mean a good recovery for the UK

John Van Reenen reacts to the news this week that the UK has avoided economic contraction in the last quarter. Whilst Osborne may see this as cause to celebrate, there is nothing commendable about an economy that continu...Read more...

CEP discussion paper

Firm Heterogeneity and Aggregate Welfare

We examine how firm heterogeneity influences aggregate welfare through endogenous firm selection. We consider a homogeneous firm model that is a special case of a heterogeneous firm model with a degenerate productivity d...Read more...

CEP occasional paper

Hooray for GDP!

Should raising the growth rate of GDP per capita be a policy goal of governments in general, and of the British government in particular? Many people would say no, for the following reasons: 1) GDP is hopelessly flawed a...Read more...

CEP discussion paper

Heterogeneity, Demand for Insurance and Adverse Selection

Recent empirical work finds that surprisingly little variation in the demand for insurance is explained by heterogeneity in risks. I distinguish between heterogeneity in risk preferences and risk perceptions underlying t...Read more...

CEP discussion paper

Goods Trade, Factor Mobility and Welfare

This paper extends a recent class of quantitative models of international trade to incorporate factor mobility within countries. We present a model-based decomposition of the variance of economic activity into the contri...Read more...