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Macroeconomics of bank capital and liquidity regulations

We study the transmission mechanisms of liquidity and capital regulations as well as their effects on the economy and welfare. We propose a macro-economic model in which a regulator faces the following...

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Not All Measures of GDP are Created Equal

"Not All Measures of GDP are Created Equal" https://t.co/Xg7cHVlkCW #feedly — Miguel A. Arranz (@miguelarrnz6) December 19, 2016

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Solar can already generate more energy than oil, says major scientific review...

Solar power is already able to produce more energy than oil and gas for every unit of energy invested. https://t.co/6Zrg8vNedS — moneyscience (@moneyscience)…

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Learning, Confidence, and Business Cycles -- by Cosmin L. Ilut, Hikaru Saijo

We build a tractable heterogeneous-firm business cycle model where firms face Knightian uncertainty about their profitability and learn it through production. The cross-sectional mean of firm-level...

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Estimating market power Evidence from the US Brewing Industry -- by Jan De...

While inferring markups from demand data is common practice, estimation relies on difficult-to-test assumptions, including a specific model of how firms compete. Alternatively, markups can be inferred...

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Energy Efficiency Standards Are More Regressive Than Energy Taxes: Theory and...

Economists promote energy taxes as cost-effective. But policymakers raise concerns about their regressivity, or disproportional burden on poorer families, preferring to set energy efficiency standards...

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Agricultural Fires and Infant Health -- by Marcos A. Rangel, Tom Vogl

Fire has long served as a tool in agriculture, but this practice's human capital consequences have proved difficult to study. Drawing on data from satellites, air monitors, and vital records, we study...

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A Behavioral New Keynesian Model -- by Xavier Gabaix

This paper presents a framework for analyzing how bounded rationality affects monetary and fiscal policy. The model is a tractable and parsimonious enrichment of the widely-used New Keynesian model -...

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How Destructive is Innovation? -- by Daniel Garcia-Macia, Chang-Tai Hsieh,...

Entrants and incumbents can create new products and displace the products of competitors. Incumbents can also improve their existing products. How much of aggregate productivity growth occurs through...

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Some Simple Economics of the Blockchain -- by Christian Catalini, Joshua S. Gans

We rely on economic theory to discuss how blockchain technology and cryptocurrencies will influence the rate and direction of innovation. We identify two key costs that are affected by distributed...

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Interfirm Relationships and Business Performance -- by Jing Cai, Adam Szeidl

We organized business associations for the owner-managers of randomly selected young Chinese firms to study the effect of business networks on firm performance. We randomized 2,800 firms into small...

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The Link Between a Happy Spouse and a Healthy You

Scholars William Chopik and Ed O'Brien have conducted some fascinating research on the link between your spouse's happiness and your health.  According to the Booth Review, A number of previous studies...

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The Topology of Inter-industry Relations from the Portuguese National...

In last years, the Portuguese economy has gone through a severe adjustment process, affecting almost all industrial sectors, the building blocks of economic structures. Research on economic structural...

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The Blockchain: A Gentle Four Page Introduction. (arXiv:1612.06244v1 [q-fin.GN])

Blockchain is a distributed database that keeps a chronologically-growing list (chain) of records (blocks) secure from tampering and revision. While computerisation has changed the nature of a ledger...

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Does Trump's election victory divide US stock market into winners and...

Many analysts, who had anticipated a great market anxiety resulting in market-wide stock price losses over the event of a Trump presidential victory, remain puzzling through why the market rebounded...

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A Markovian Model of the Evolving World Input-Output Network....

Using the recently available World Input-Output Database, we modeled the evolving world economic network (from 1995 to 2011) with a series of time-homogeneous finite Markov chains. Next, we...

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Optimal Investment under Information Driven Contagious Distress....

We introduce a dynamic optimization framework to analyze optimal portfolio allocations within an information driven contagious distress model. The investor allocates his wealth across several stocks...

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Co-movements in financial fluctuations are anchored to economic fundamentals:...

We show that there exists an empirical linkage between nominal financial networks and the underlying economic fundamentals across countries. We construct the nominal return correlation networks from...

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The Barefoot Investor: The Only Money Guide You'll Ever Need

That's a bold claim, given there are already thousands of finance books on the shelves.read more...

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Climate change threatens ability of insurers to manage risk

Climate change threatens ability of insurers to manage risk. https://t.co/2s864vF8jI — moneyscience (@moneyscience) December 7, 2016

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