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2017-07-20

• Climate Change Will (Probably) Not Destroy the Global Economy but That Doesn't Mean We are Out of the Woods
  by Ed Dolan in Ed Dolan's Econ Blog, 2017-07-20 11:25:00 UTC

  Climate change is on course to do a lot of harm to our planet. That is why concerned economists like myself advocate measures that would at least slow the pace of damage and give us more time to adapt. Paradoxically, though, economists rarely discuss what global warming is likely to do to the economy itself. Will climate change destroy the global economy as it raises sea levels, intensifies extreme weather, and kills our crops? The answer turns out to be more complex than you might think. It is certainly not as simple as David Wallace-Wells endeavors to make it in his widely read New Yo [...]

• Thesis Thursday: Till Seuring
  by Chris Sampson in The Academic Health Economists' Blog, 2017-07-20 06:00:57 UTC

  On the third Thursday of every month, we speak to a recent graduate about their thesis and their studies. This month’s guest is Dr Till Seuring who graduated with a PhD from the University of East Anglia . If you would like to suggest a candidate for an upcoming Thesis Thursday, get in touch. Title The economics of type 2 diabetes in middle-income countries Supervisors Marc Suhrcke , Max Bachmann , Pieter Serneels Repository link https://ueaeprints.uea.ac.uk/63278/ What made you want to study the economics of diabetes? I was diagnosed with type 1 diabetes when I was 18. So while looking for a [...]

2017-07-18

• A note on automation, stagnation, and the implications of a robot tax
  by Christian Zimmermann in NEP-DGE blog, 2017-07-18 21:09:49 UTC

  Emanuel Gasteiger and Klaus Prettner http://d.repec.org/n?u=RePEc:zbw:fubsbe:201717&r=dge We analyze the long-run growth effects of automation in the canonical overlapping generations framework. While automation implies constant returns to capital within this model class (even in the absence of technological progress), we show that it does not have the potential to lead to positive long-growth. The reason is that automation suppresses wages, which are the only source of investment because of the demographic structure of the overlapping generations model. This result stands in sharp contrast to [...]

• Why is California Housing 4 Times as Expensive as Alabama Housing? Supply or Demand Revisited
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-18 14:50:00 UTC

  Zillow reports that the median home price in Alabama is $126,000 while in California it is $500,000 .  Why?  The NY Ti mes reports today on this issue. In this self serving blog post,  I want to point you to my demand side papers that explain why California home prices are so high and my supply side papers. Demand Side: Kahn Matthew E., 1995. " A Revealed Preference Approach to Ranking City Quality of Life ,"  Journal of Urban Economics , Elsevier, vol. 38(2), pages 221-235, September. Cragg, Michael & Kahn, Matthew, 1997. " New Estimates of Climate Demand: Evidence from Location Choice ,"  Jo [...]

2017-07-17

• Why Is There No New Housing Construction in the Desirable Venice Beach, California Area?
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-17 18:40:00 UTC

  When I walk around the Venice Beach area, I see plenty of two story buildings and homes that could be knocked down and rebuilt with 6 story and taller buildings. Th e WSJ poses a great puzzle today on why more housing isn't being built in this paradise. �My friends Issi Romem and Jed Kolko are both quoted. My simple economic explanation for why supply isn't keeping up with demand is the fact that Venice Beach is a progressive community with much of its land located within the Coastal Commission's jurisdiction. �Both of these factors create more regulation and zoning which leads to an inelastic [...]

• An Open Letter to the Honorable Randal K. Quarles
  by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2017-07-17 12:58:28 UTC

  Dear Mr. Quarles, Congratulations on your nomination as the first Vice Chairman for Supervision on the Board of Governors of the Federal Reserve System. We are pleased that President Trump has chosen someone so qualified, and we are equally pleased that you are willing to serve. Assuming everything goes according to plan, you will be assuming your position just as we mark the 10th anniversary of the start of the global financial crisis. As a direct consequence of numerous reforms, the U.S. financial system—both institutions and markets—is meaningfully stronger than it was in 2007. Among many o [...]

• Paul Mitchell’s journal round-up for 17th July 2017
  by paulmitchell1 in The Academic Health Economists' Blog, 2017-07-17 11:00:07 UTC

  Every Monday our authors provide a round-up of some of the most recently published peer reviewed articles from the field. We don’t cover everything, or even what’s most important – just a few papers that have interested the author. Visit our Resources page for links to more journals or follow the HealthEconBot . If you’d like to write one of our weekly journal round-ups, get in touch . What goes wrong with the allocation of domestic and international resources for HIV?  Health Economics [ PubMed ]  Published 7th July 2017 Investment in foreign aid is coming under considered scrutiny as a numbe [...]

2017-07-15

• A Quick Economic Evaluation of Jim Hansen's Predictions About Our Urban Future
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-15 13:34:00 UTC

  The respected climate scientist Jim Hansen says many interesting things in this interview.     Below, I reproduce one direct quote and then comment on it. To think for a minute at the scarier end of the spectrum. If we do end up four or five degrees warmer, within a relatively short period of time — that’s the IPCC’s RCP8.5 scenario, by the end of the century, and that’s not counting some of these dramatic feedback mechanisms, what would that do to the planet, in your mind?  "I don’t think we’re going to get four or five degrees this century, because we get a cooling effect from the melting ic [...]

2017-07-14

• 5 Cities That Won't Be Hosting the 2024 Olympics, and Why That Makes Them Winners
  by Ed Krayewski in Hit & Run blog, 2017-07-14 20:00:00 UTC

  The International Olympics Committee (IOC) announced this week that the 2024 Summer Olympics would be awarded to either Paris or Los Angeles, the only two cities bidding for the games. The other city would be awarded the 2028 Summer Olympics. It's a far cry from the 1990s, when the IOC had six cities to choose from for the 1996 Summer Olympics and five for the 2000 Summer Olympics. City residents, especially in democratic countries, are starting to figure out what a rip-off hosting the Olympics can be . Every Olympics games since 1960 for which data is available has faced cost over-ru [...]

• The Complex Relationship between Income and GHG Emissions
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-14 17:02:00 UTC

  Dave Roberts h as written a thought provoking blog post. � My read of his piece is that he is telling a "Elvis Presley" story. �Back before he was rich and famous, Elvis had a small carbon footprint because he couldn't afford several cars, a �pool, lots of steak and a big house but as he got rich , he lived the American Dream and had a much larger carbon footprint. �Roberts doesn't mention Elvis but this scale story is his story. To an economist, consumption has a quantity and quality dimension. Roberts is fixated on just the former. �Really poor people are more likely to burn coal for heating [...]

• Public Transit Investment in Older, Progressive Cities: The Tradeoff of Investing in Capital versus Labor:
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-14 00:08:00 UTC

  Budget constraints bind. �Read this NY Times Editorial in which the NYC mayor is lectured for not spending enough on subways. �My simple theory for why this mayor and past mayors have under-invested is because almost all of the $ goes to the public sector transportation unions. �As we argue in this 2016 NBER paper , these public sector transport workers are very well paid. In aggregate, this leaves very little money for upgrading capital. �New York City's subway is old (and thus not at the technological frontier) and the unions have great power. �Read about the NYC bus driver who made $153,000 [...]

2017-07-13

• No Mention of General Equilibrium Effects in The Economist Magazine!
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-13 18:43:00 UTC

  Read this sensible piece �published in the esteemed Economist Magazine�about the possible effects of climate change. �A key point that the piece focuses on is that poor counties in the U.S may become poorer because of increased heat and climate risk. � In a standard compensating differentials model, this will lower home prices there. � Read my 2014 Istanbul Keynote. � � �Yes, home owners in places that do not play good defense against climate change will suffer an asset price loss as the aggregate demand for such homes declines (the supply of such durable capital is inelastic). �But, poor peop [...]

• …IRPF…
  by J. Ignacio Conde-Ruiz in Nada Es Gratis, 2017-07-13 05:03:09 UTC

  de J. Ignacio Conde-Ruiz y Carmen Marín Estos días estamos oyendo hablar mucho del impuesto sobre la renta a las personas físicas (IRPF). En este post vamos a ver, dada la información disponible, los principales hechos estilizados del impuesto. En primer lugar vemos que el IRPF como porcentaje del PIB recauda un 7,4%, 2 puntos de PIB por debajo de la media europea (véase Gráfico 1). Fuente: Elaboración propia con datos de Eurostat La explicación de la menor recaudación que la media, como ya pusimos de relieve en este trabajo ,  no es por tener unos tipos marginales más bajos que la media. Pue [...]

2017-07-12

• Robustness, Low Risk-Free Rates, and Consumption Volatility in General Equilibrium
  by Christian Zimmermann in NEP-DGE blog, 2017-07-12 14:07:55 UTC

  By Yulei Luo, Jun Nie and Eric Young http://d.repec.org/n?u=RePEc:pra:mprapa:80046&r=dge This paper develops a tractable continuous-time recursive utility (RU) version of the Huggett (1993) model to explore how the preference for robustness (RB) interacts with intertemporal substitution and risk aversion and then affects the interest rate, the dynamics of consumption and income, and the welfare costs of model uncertainty in general equilibrium. We show that RB reduces the equilibrium interest rate and the relative volatility of consumption growth to income growth when the income process is sta [...]

2017-07-11

• Peer Pressure: Tax Competition and Developing Economies
  by IMFBlog in iMFdirect, 2017-07-11 16:09:42 UTC

  By Michael Keen and Jim Brumby July 11, 2017 A salesman checks an iphone in New Delhi, India: governments compete to attract investors with low corporate tax rates (photo: Adnan Abidi/Reuters/Newscom) Economists tend to agree on the importance of competition for a sound market economy. So, what’s the problem when it comes to governments competing to attract investors through the tax treatment they provide? The trouble is that by competing with one another and eroding each other’s revenues, countries end up having to rely on other—typically more distortive—sources of financing or reduce much- [...]

• IL DEBITO PUBBLICO GRAVA SULLE GENERAZIONI FUTURE? MOLTO, MOLTO MENO DELL'EURO, MR. MOSCOVICI
  by Quarantotto in Orizzonte48, 2017-07-11 14:08:00 UTC

  1. L'immancabile Repubblica , adiuvata criticamente dalla Stampa , riporta la ormai nota (quanto trita) replica di Moscovici all'uscita di Renzi sull'aggiramento/modifica del fiscal compact:  Accoglienza tiepida se non fredda a Bruxelles per la proposta lanciata da Matteo Renzi di tenere il deficit al 2,9% per cinque anni per liberare risorse per spingere la crescita economica. "È interesse dell'Italia continuare a ridurre il deficit per ridurre il debito pubblico che pesa sulle generazioni future e impedisce di investire: ogni euro per far fronte al debito è un euro in meno alla scuola, [...]

• The Taylor Review: 1990s answers to 2010s problems
  by chris in Stumbling and Mumbling, 2017-07-11 12:51:28 UTC

  For me, the Taylor Review (pdf) of working practices is frustrating. There are some good things about it, not least of which is it’s mere existence. Anything that brings the hidden abode of production into public view, and draws attention to the ground truth of working lives, is to be welcomed. I also welcome its demand that “workers must have a voice”, its pointing out the hidden unemployment that is economic inactivity, and the insecurity evident in labour market flows data. I also like this : People who have less autonomy over what they do at work tend to report lower wellbeing rates [...]

2017-07-10

• Monetary Policy According to HANK
  by Christian Zimmermann in NEP-DGE blog, 2017-07-10 20:32:58 UTC

  By Greg Kaplan, Benjamin Moll and Giovanni L. Violante http://d.repec.org/n?u=RePEc:ime:imedps:17-e-04&r=dge We revisit the transmission mechanism of monetary policy for household consumption in a Heterogeneous Agent New Keynesian (HANK) model. The model yields empirically realistic distributions of wealth and marginal propensities to consume because of two features: uninsurable income shocks and multiple assets with different degrees of liquidity and different returns. In this environment, the indirect effects of an unexpected cut in interest rates, which operate through a general equilibrium [...]

• Climate Change Impacts: More Popular Press Doom and Gloom
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-10 15:54:00 UTC

  Read this piece and let me reprint some quotes; "The present tense of climate change — the destruction we’ve already baked into our future — is horrifying enough. Most people talk as if Miami and Bangladesh still have a chance of surviving; most of the scientists I spoke with assume we’ll lose them within the century, even if we stop burning fossil fuel in the next decade." another quote "At 11 or 12 degrees of warming, more than half the world’s population, as distributed today, would die of direct heat. Things almost certainly won’t get that hot this century, though models of unabated emissi [...]

• 305 – Feeling virtuous: what’s it worth?
  by David Pannell in Pannell Discussions, 2017-07-10 15:00:54 UTC

  We all like to feel good about ourselves. A product that makes us seem virtuous to others, or even to ourselves, would be worth paying more for than its strictly utilitarian value. That was one of our hypotheses behind a surprising result in some recent research. We were trying to measure the benefits of installing a rainwater tank on an urban property in Perth. We did this by measuring the premium in house sale prices for houses that already had a rainwater tank installed, compared with similar houses that did not. The results left us deeply puzzled. First, the price premium was enormous: aro [...]

• China: Deleveraging is Hard to Do
  by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2017-07-10 12:37:23 UTC

  “Financial security is an important part of national security and an important basis for the steady and healthy development of the economy.” President Xi Jinping, Reuters , April 26, 2017. “Leverage comes by the pound and goes away by the ounce.” Zhang Zhongkai, Xinhua News Service , May 4, 2015. For the first time in nearly three decades, Moody’s recently downgraded the long-term sovereign debt of China, lowering its rating from Aa3 to A1. As is frequently true in such cases, the adjustment was overdue. Since China’s massive fiscal stimulus in 2008, the government has experienced a surge in c [...]

• ‘Metrics Monday: Dealing with Imperfect Instruments III
  by Marc F. Bellemare in Marc F. Bellemare, 2017-07-10 10:00:06 UTC

  Back in January, I wrote two posts about dealing with imperfect instruments. One went over Conley et al. (2012), which deals with instruments that the authors deem plausibly exogenous; the other went over Nevo and Rosen (2012), which deals with instruments that the authors deem imperfect. In a new working paper , Damian Clarke and Benjamin Matta discuss both methods, and they present the Stata commands – plausexog – and – imperfectiv – they created to implement them. If you are dealing with an instrumental variable that can sort of, kind of meet the exclusion restriction but might not (in othe [...]

2017-07-09

• Ben Bernanke, in Denial? "When Growth is Not Enough"
  by Doug Campbell in Douglas L. Campbell, 2017-07-09 08:14:00 UTC

  "When Growth is Not Enough" is the title of a recent Ben Bernanke speech �in Portugal. I found it via the NYT article on the " Robocalypse ", which contained this bizarre quote from Ben S. Bernanke " as recent political developments have brought home, growth is not always enough." However, as you can see, something terrible has happened to US GDP growth, even if it has escaped the attention of our former Fed Chair. On twitter, Kocherlakota and I were both hoping he'd been taken out of context. Unfortunately, that turned out not to be the case.� In his speech, Bernanke is trying to make sense o [...]

• Robots, Artificial Intelligence, and the Future of Work
  by noreply@blogger.com (David Stern) in Stochastic Trend, 2017-07-09 01:23:00 UTC

  I think that robots/artificial intelligence and the future of work is a hugely important topic. This is a very active research field but it seems to me that people (some informed by this research but most without referring to the research) are rushing to one of two conclusions. The first of these conclusions is that up till now economic growth has resulted in rising wages and full employment and so it surely will in the future too. The other is that robots must mean structural unemployment and so the solution is to introduce universal basic income or some similar redistributive policy. I don't [...]

2017-07-07

• Reorganization or Liquidation: Bankruptcy Choice and Firm Dynamics
  by Christian Zimmermann in NEP-DGE blog, 2017-07-07 20:51:40 UTC

  By Dean Corbae and Pablo D’Erasmo http://d.repec.org/n?u=RePEc:fip:fedpwp:17-14&r=dge In this paper, we ask how bankruptcy law affects the financial decisions of corporations and its implications for firm dynamics. According to current U.S. law, firms have two bankruptcy options: Chapter 7 liquidation and Chapter 11 reorganization. Using Compustat data, we first document capital structure and investment decisions of non-bankrupt, Chapter 11, and Chapter 7 firms. Using those data moments, we then estimate parameters of a firm dynamics model with endogenous entry and exit to include both bankrup [...]

• Does the Fundamental Law of Traffic Congestion Hold in the Developing World?
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-07 13:28:00 UTC

  Transport economics is a lively field. �I have written papers on who uses public transit in the United States and I've studied the effectiveness of new rail systems built in the U.S (and their gentrification effects ) and I've studied the complementarities between public investment in transit systems and private investment in nearby rea l estate and retail stores in China. One point that I thought was established was the " fundamental law of traffic congestion". � When roads are not priced, there is a classic tragedy of the commons such that each driver who seeks to maximize his own speed igno [...]

• Perché non trasformare il Cnel in qualcosa di utile?
  by Andrea Goldstein in La Voce, 2017-07-07 08:44:21 UTC

  La lenta convergenza nei tassi di crescita rischia di minare l’Unione economica e monetaria. Perciò le autorità europee raccomandano l’istituzione di National Productivity Board. Per l’Italia, fanalino di coda della produttività tra i G7, è un’opportunità. Se la produttività è un problema Il contributo di Paul Krugman all’economia politica è vastissimo, ma forse la sua “scoperta” più importante è che la produttività non è tutto, ma nel lungo periodo è praticamente tutto ( The Age of Diminishing Expectations , 1994). Pertanto, non desta sorpresa che preoccupino i pessimi risultati al riguardo [...]

2017-07-06

• Cities: Where the economy plays scrabble
  by Brad Cunningham in The Avenue, 2017-07-06 21:15:41 UTC

  By Brad Cunningham In my last post I argued that our canonical models of economic growth don’t help us think about the important role that cities have to play in that process. In this post, I’ll introduce a model that I find extremely useful for making sense of the growth experience of developing countries and apply it to cities. The model, developed at the Harvard Center for International Development (CID), compares economic production to playing the board game Scrabble. For those who haven’t played Scrabble recently, here’s a refresher. Players collect a number of individual tiles, each of w [...]

• Braucht eine Zentralbank Eigenkapital?
  by Acemaxx-Analytics in Acemaxx-Analytics, 2017-07-06 06:14:00 UTC

  Was heute nach wie vor ins Auge fällt, ist das Phänomen, dass die Zentralbank-Bilanzen als Antwort auf die globale Finanzkrise von 2008-2009 aussergewöhnlich angeschwollen sind. In einem lesenswerten Blog-Eintrag befasst sich die britische Zentralbank ( BoE : Bank of England) mit dem Thema, was die Bilanz der Notenbanken von der Bilanz anderer Institutionen unterscheidet und wie sie sich in Zukunft entwickelt. Das Eigenkapital der Zentralbanken besteht, wie bei jedem Unternehmen, aus dem Aktienkapital und den einbehaltenden Gewinnen.  Die Finanzkonten der Zentralbanken haben aber eine [...]

2017-07-04

• An "Old School" University of Chicago Price Theory Problem on the Economics of Climate Change Adaptation
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-04 14:19:00 UTC

  I wasn't Gary Becker's best student but bear with me and permit me to pose an Econ 301 problem set question that I could imagine that Becker/Mulligan/Murphy would now pose to the new generation of UChicago Students. �Recall that in Becker's household production function approach that consumers had basic wants; each wants to be comfortable, healthy and safe. �They use market inputs and their time to produce these goods. �Preferences do not change over time. Instead, what changes over time is the production function of "comfort", "health" and "safety". Nobody gains direct utility from having an [...]

• The Tories' structural problem
  by chris in Stumbling and Mumbling, 2017-07-04 13:34:41 UTC

  Martin O’Neill says the Tories have forgotten to offer voters anything other than austerity. For me, this poses a question. Is the Tories’ disarray simply because of the profound mediocrity of its personnel – a malaise so great there’s talk of them having to recruit their next leader from the 19 th century? Or is there instead a structural problem? To see my point, let’s think in terms of a paradigm proposed by James O’Connor in The Fiscal Crisis of the State . The state in capitalist society, he argued, must fulfill two functions: legitimation, or keeping the people happy; and acc [...]

2017-07-03

• (Superstar) Firms and Inequality
  by sebastianfleitas in NEP-HIS blog, 2017-07-03 14:52:19 UTC

  The Fall of the Labor Share and the Rise of Superstar Firms By: David Autor (MIT, NBER and IZA), David Dorn (University of Zurich and IZA), Lawrence F. Katz (Harvard University, NBER and IZA), Christina Patterson (MIT) and John Van Reenen (MIT, NBER and IZA) Abstract:  The fall of labor’s share of GDP in the United States and many other countries in recent decades is well documented but its causes remain uncertain. Existing empirical assessments of trends in labor’s share typically have relied on industry or macro data, obscuring heterogeneity among firms. In this paper, we analyze micro panel [...]

• Central Bank Balance Sheets: Past, Present and Future
  by bankunderground in Bank Underground, 2017-07-03 08:00:12 UTC

  James Barker, David Bholat and Ryland Thomas. Central bank balance sheets swelled in size in response to the financial crisis of 2007-09. In this blog we discuss what makes them different from the balance sheets of other institutions, how they’ve been used in the past, and how they might evolve in the future as means to implement novel policies – including the revolutionary possibility that a central bank could issue its own digital currency. What makes central bank financial statements special? The financial accounts of central banks have a number of quirks that make them different from tho [...]

2017-07-02

• China and International Trade in Coal Fired Power Plant Technology
  by Matthew Kahn in Environmental and Urban Economics, 2017-07-02 16:42:00 UTC

  The NY Times has published an interesting piece documenting that China is simultaneously promising to reduce its own GHG emissions while it is exporting its technology and providing the financing for developing countries to build new coal fired power plants. �Throughout the developing world, nations such as Pakistan have a great need for more energy and electricity. �Nations such as Pakistan promised no carbon reductions at the COP 21 Paris 2015 meetings. So, the Times shouldn't be surprised that Pakistan will be generating more power using coal. The NY Times appears to be calling China a "hyp [...]

2017-07-01

• Canada Day Reading List
  by Dave Giles in Econometrics Beat: Dave Giles' Blog, 2017-07-01 15:13:00 UTC

  I was tempted to offer you a list of 150 items, but I thought better of it! Hamilton, J. D. , 2017. Why you should never use the Hodrick-Prescott filter. Mimeo., Department of Economics, UC San Diego. Jin, H. and S. Zhang , 2017. Spurious regression between long memory series due to mis-specified structural breaks. Communications in Statistics - Simulation and Computation , in press. Kiviet, J. F. , 2016. Testing the impossible: Identifying exclusion restrictions.Discussion Paper 2016/03, Amsterdam School of Economics, University of Economics. Lenz, G. and A. Sahn , 2017. Achieving statistical [...]

2017-06-30

• Potpourri
  by Bob Murphy in Free Advice, 2017-06-30 15:56:01 UTC

  ==> LAST CHANCE! Remember there’s a great discount for my student text and teacher’s manual of Lessons for the Young Economist . Offer expires today (June 30, 2017). ==> You know, people like Krugman criticize me for refusing to grapple with the surprising inflation results after 2008. It’s like he never saw the publication: Murphy, Robert. (2014) “Explaining Inflation in the Aftermath of the Great Recession,” Journal of Macroeconomics, Vol. 40, pp. 228-244. ==> My latest explaining the case against ObamaCare “saving tens of thousands of lives annually.” I rely heavily on Oren Cass’s original [...]

2017-06-29

• Medium and long term implications of financial integration without financial development
  by Christian Zimmermann in NEP-DGE blog, 2017-06-29 20:05:54 UTC

  By Flavia Corneli http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1120_17&r=dge We show that, in a two-country model where the two economies differ in their level of financial market development and initial capital endowment, financial integration has sizeable transitory as well as permanent effects. We confirm that, consistent with the Lucas paradox, financial integration in the medium term can reduce capital accumulation and increase savings in the financially less developed country, characterized by domestic capital market distortions, due to a higher risk premium in production activities. In th [...]

• Why It's So Difficult To Call The Market Top
  by Tyler Durden in Zero Hedge, 2017-06-29 12:23:39 UTC

  Via Global Macro Monitor, This is one of our favorite posts of all-time. Thought it apropos to re-post given that everyone and their mother is trying to call the top in stocks.  It’s all about yield-seeking capital flows, my friends.   Tell us what interest rate is the tipping point which thwarts that behavior and we will tell you when the stock and credit markets top and flop. “John Bull can stand many things, but he cannot stand  2  ,  0,  . 5  , 1 ,  1 . 5  , 2 percent”  – Bagehot We are still far from the tipping point interest rate that sends the yield seekers back to their caves, in our [...]

• Premature Deindustrialization and the Defeminization of Labor
  by jpellg in Development Economics, 2017-06-29 12:00:36 UTC

  In two previous posts on this blog, I’ve discussed the issue of premature deindustrialization and some of its possible consequences. In a recent paper , I, along with co-author Bret Anderson of Southern Oregon University, explored the potential consequences of premature deindustrialization further by examining the possible connections between premature deindustrialization and the defeminization of industrial employment. Premature deindustrialization is a situation in which the shares of manufacturing value added and employment begin to shrink at per-capita income levels much lower than those [...]

2017-06-26

• How to Ensure the Crisis Provision of Safe Assets
  by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2017-06-26 08:52:56 UTC

  Changes in financial regulation are having a profound impact on the demand for safe assets —assets with a fixed nominal value that may be converted at all times without loss into the means of payment.  Not only is demand for safe assets on the rise, but the ability of the private sector to produce them is being constrained by new rules that limit the extent and nature of things like securitizations. Now, the relevant changes in regulation are varied, but their common goal is to make the financial system more resilient. For example, banks are now required to hold more liquid assets to back liab [...]

2017-06-23

• Banxico mantiene su posición de "halcón" (con un disidente)
  by Alejandro Villagomez in Tintero Económico Diario, 2017-06-23 17:11:00 UTC

  Ayer, jueves 22 de junio, Banxico volvió a aumentar su tasa de referencia en 25 puntos base para ubicarla ya en 7%. Fue una decisión ya esperada por la mayoría del mercado debido a que la misma autoridad monetaria había enviado bastantes "señales" en ese sentido. Sin embargo, esto no quiere decir que haya sido la decisión "correcta" o "adecuada". Yo sigo pensando que es una posición fuertemente de "halcón" por parte del banco central. Mi argumento no es muy distinto de mis últimos posts así que no lo repetiré en detalle. De nueva cuenta hago referencia a principio básico de la teoría monetaria [...]

2017-06-22

• The "bucketing" problem in financial markets
  by noreply@blogger.com (Gulzar Natarajan) in Urbanomics, 2017-06-22 20:54:00 UTC

  In recent weeks rating agencies have come for stinging rebukes from India to China and Russia. Livemint has this story examining whether rating agencies are biased against India and developing countries.  In this context, I had blogged earlier pointing to this article by Nandini Vijayaraghavan which gets to the heart of the problem with any ratings approach - it buckets the target populations, and does ratings based on assessments across and within buckets,  The impediment to the rating agencies upgrading India’s sovereign ratings lies in their methodologies. The sovereign rating methodology f [...]

• The lack of demand for equality
  by chris in Stumbling and Mumbling, 2017-06-22 13:00:48 UTC

  Why do people tolerate inequality? A new paper by Karl Ove Moene and colleagues provides a new explanation: it’s because a small role for merit in income inequality causes a big drop in demand for redistribution. They showed this in some experiments. Over 1000 people were asked to observe pairs of people working on a task for ten minutes, with earnings divided between the pairs in different ways. The spectators were then invited to redistribute some or all of those earnings. When told that one worker got everything and another nothing simply because of a lottery, 68% of spectators chose to e [...]

2017-06-21

• What Does Energy Economics Teach Us About a Zero Carbon Electricity Grid by the year 2050?
  by Matthew Kahn in Environmental and Urban Economics, 2017-06-21 20:28:00 UTC

  Energy engineers are having an interesting fight over whether the US electricity grid can "easily" be 100% renewables (and thus create 0 GHG emissions) in the next 30 years. �A prominent Stanford Engineer an d his team says "yes" �while so me important critics say no. � �In Today's NY Times ("Economics Scene) Eduardo Porter sides with the critics . �The interesting thing here is that no empirical microeconomists who study energy are part of either research team or are quoted in the NY Times. �Yet, at the end of the day --- this is a microeconomics issue. Here are some of the key issues that bo [...]

• Summer School 2017 in Paris
  by Matthew Kahn in Environmental and Urban Economics, 2017-06-21 14:18:00 UTC

  If you look a t these photos, �you might be able to find me in one of them (hint --- look at the dinner photo). �I enjoyed speaking on June 15th 2017. �As I should have guessed, the room was not air conditioned and my students were not that cheery in the heat. �Still, they were a very smart group who posed some interesting questions. �As I discussed the urban economics of climate change adaptation (see here , here , and here ); �the PHD students kept talking about co-ordination failures and adjustment costs. 1. co-ordination failures --- we know that Manhattan is a successful co-agglomeration [...]

• Free markets need equality
  by chris in Stumbling and Mumbling, 2017-06-21 12:34:04 UTC

  These are dark times for free marketeers. Voters are only lukewarm about the virtues of capitalism; the Grenfell disaster is widely regarded as showing the case for greater regulation ; and, as Sam Bowman says , even the Tories “have totally failed to make a broad-brush case for free markets.” I share some of their disquiet. Flawed as they are, markets have virtues as selection and information-aggregation mechanisms. What, then, can be done to strengthen the case for markets? There’s one thing that’s crucial – equality of power. For free markets to have public acceptance, the worst-o [...]

2017-06-20

• Still More On Mariel: The Role of Race
  by maximorossi in NEP-LTV blog, 2017-06-20 14:37:50 UTC

  By: George J. Borjas Card’s (1990) study of the Mariel supply shock remains an important cornerstone of both the literature that measures the labor market impact of immigration, and of the “stylized fact” that immigration might not have much impact on the wage of workers in a receiving country. My recent reappraisal of the Mariel evidence (Borjas, 2017) revealed that the wage of low-skill workers in Miami declined substantially in the years after Mariel, and has already encouraged a number of re-reexaminations. Most recently, Clemens and Hunt (2017) argue that a data quirk in the CPS imp [...]

• Non-Work at Work, Unemployment and Labor Productivity
  by maximorossi in NEP-LTV blog, 2017-06-20 14:37:02 UTC

  By: Burda, Michael C ; Genadek, Katie R. ; Hamermesh, Daniel S. We use the American Time Use Survey (ATUS) 2003-2012 to estimate time spent in non-work on the job. Non-work is substantial and varies positively with local unemployment. Time spent in non-work conditional on any positive amount rises, while the fraction of workers reporting positive values declines with unemployment. Both effects are economically important, and are consistent with a model in which heterogeneous workers are paid efficiency wages. That model correctly predicts the relationship between the incidence of non [...]

• Body-Weight and Women’s Hours of Work: More Evidence That Marriage Markets Matter
  by maximorossi in NEP-LTV blog, 2017-06-20 14:34:53 UTC

  By: Grossbard, Shoshana (San Diego State University) ; Mukhopadhyay, Sankar (University of Nevada, Reno) Higher body-weight (BMI) can affect labor supply via its effects on outcomes in both labor markets and marriage markets. To the extent that it is associated with lower prospects of being in couple and obtaining intra-couple transfers, we expect that higher BMI will increase willingness to supply labor in labor markets, especially for women. We use US panel data from the NLSY79 and NLSY97 to examine whether body weight influences hours of work in the labor market. We use sibling BMI as [...]

• Selection on Ability and the Early Career Growth in the Gender Wage Gap
  by maximorossi in NEP-LTV blog, 2017-06-20 14:33:44 UTC

  By: Fraga, Eduardo (Yale University) ; Gonzaga, Gustavo (Pontifical Catholic University of Rio de Janeiro (PUC-Rio)) ; Soares, Rodrigo R. (Columbia University) This paper analyzes the effect of selection on ability on the evolution of the gender wage gap during the first years of professional life. We use longitudinal data with 16 years of the early career history of formal sector workers in Brazil. The panel allows us to build a measure of unobserved ability that we use to analyze the dynamics of labor market selection across genders as individuals age. We focus on the cohort born in 19 [...]

• {Economics ∪ History} ∩ {North ∪ Fogel}
  by Thales ZP in NEP-HIS blog, 2017-06-20 04:00:55 UTC

  A Cliometric Counterfactual: What if  There Had Been Neither Fogel nor North? Claude Diebolt (Strasbourg University) and Michael Haupert (University of Wisconsin – La Crosse) Abstract – 1993 Nobel laureates Robert Fogel and Douglass North were pioneers in the “new” economic history, or cliometrics. Their impact on the economic history discipline is great, though not without its critics. In this essay, we use both the “old” narrative form of economic history, and the “new” cliometric form, to analyze the impact each had on the evolution of economic history. URL: http://d.repec.org/n?u=RePEc:a [...]

2017-06-19

• The Treasury's Missed Opportunity
  by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2017-06-19 13:01:13 UTC

  “…we expect to be cutting a lot out of Dodd-Frank because, frankly, I have so many people, friends of mine that have nice businesses that can't borrow money, they just can’t get any money because the banks won’t let them borrow because of the rules and regulations in Dodd-Frank....” President Donald Trump’s remarks to the initial gathering of his Strategic and Policy Forum , February 3, 2017. “ The number one problem with Dodd-Frank is that it’s way too complicated and cuts back lending. So we want to strip back parts of Dodd-Frank that prevent banks from lending. And that will be the number o [...]

• Contingencies of Company Law: On the Corporate Form and English Company Law, 1500-1900
  by andrewdsmith in The Past Speaks, 2017-06-19 12:43:22 UTC

  I’m sharing another excellent review piece from Nep-Hist blog run by the multi-talented Bernardo Batiz-Lazo. The NEP-HIS Blog The Development of English Company Law before 1900 By: John D. Turner (Queen’s University Belfast) Abstract: This article outlines the development of English company law in the four centuries before 1900. The main focus is on the evolution of the corporate form and the five key legal characteristics of the corporation – separate legal personality, limited liability, transferable joint stock, delegated management, and investor ownership. The article outlines how these [...]

2017-06-18

• Il moralismo del mainstream
  by Alberto Bagnai in Goofynomics, 2017-06-18 09:28:00 UTC

  Qualche sera fa, dopo un piacevole incontro con alcuni soci romani (piacevole per me, per loro non ne ho idea...) me ne sono andato col nostro tesoriere a sentire il saggio di viola da gamba di Roberta in una chiesa che vi sfido a riconoscere... ma siccome sono buono, vi do subito l'indizio risolutore (la pala d'altare). Chissà quanti di quelli che fra voi vogliono brandire uno spadone a due mani per contrastare l'invasione (?) riconosceranno il santo effigiato? Mentre si andava, Paolo mi raccontava come mi aveva conosciuto: leggendo Le aporie del più Europa su Micromega. Da lì era arrivato al [...]

2017-06-16

• Hey, Economist! How Do You Forecast the Present?
  by Blog Author in Liberty Street Economics, 2017-06-16 15:15:00 UTC

  A Conversation with Domenico Giannone, Argia Sbordone, and Andrea Tambalotti New York Fed macroeconomists have been sharing their “nowcast” of GDP growth on the Bank’s public website since April 2016. Now, they’ve launched an interactive version of the Nowcasting Report , which updates the point forecast each week, but also helps users better visualize the impact of the flow of incoming data on the estimate produced by the model. Tables offer more detail on the data series informing the estimate. The interactive version also reports the staff nowcast back to January 2016, a longer n [...]

2017-06-15

• Thesis Thursday: Miqdad Asaria
  by Chris Sampson in The Academic Health Economists' Blog, 2017-06-15 06:00:19 UTC

  On the third Thursday of every month, we speak to a recent graduate about their thesis and their studies. This month’s guest is Dr Miqdad Asaria who graduated with a PhD from the University of York . If you would like to suggest a candidate for an upcoming Thesis Thursday, get in touch. Title The economics of health inequality in the English National Health Service Supervisors Richard Cookson , Tim Doran Repository link http://etheses.whiterose.ac.uk/16189 What types of inequality are relevant in the context of the NHS? For me the inequalities that really matter are the inequalities in health [...]

2017-06-14

• Credit and Saving Constraints in General Equilibrium: Evidence from Survey Data
  by Christian Zimmermann in NEP-DGE blog, 2017-06-14 18:48:52 UTC

  By Catalina Granda, Franz Hamann and Cesar E. Tamayo http://d.repec.org/n?u=RePEc:bdr:borrec:1002&r=dge In this paper, we build a heterogeneous agents-dynamic general equilibrium model wherein saving constraints interact with credit constraints. Saving constraints in the form of fixed costs to use the financial system lead households to seek informal saving instruments (cash) and result in lower aggregate saving. Credit constraints induce misallocation of capital across producers that in turn lowers output, productivity, and the return to formal financial instruments. We calibrate the model us [...]

• Why insurance works better with some adverse selection
  by Guy Thomas in The Academic Health Economists' Blog, 2017-06-14 06:00:02 UTC

  Adverse selection, a process whereby low-risk individuals drop out of the insurance pool, leaving only high-risk individuals, arises when the individuals purchasing insurance have better information regarding their risk status than does the insurer. […] In the limit, adverse selection can make insurance markets unsustainable. Even short of the market disappearing altogether… The market cannot offer a full set of insurance contracts, reducing allocative efficiency. The story summarised above ( by Jeremiah Hurley ) is familiar to all health economists. Adverse selection is generally understood t [...]

2017-06-13

• Knightian uncertainty and credit cycles
  by Christian Zimmermann in NEP-DGE blog, 2017-06-13 20:13:22 UTC

  By Eddie Gerba and Dawid Żochowski http://d.repec.org/n?u=RePEc:ecb:ecbwps:20172068&r=dge The Great Recession has been characterised by the two stylized facts: the buildup of leverage in the household sector in the period preceding the recession and a protracted economic recovery that followed. We attempt to explain these two facts as an information friction, whereby agents are uncertain about a new state of the economy following a financial innovation. To this end, we extend Boz and Mendoza (2014) by explicitly modelling the credit markets and by modifying the learning to an adaptive set-up. [...]

• Challenging the Role of Capital Adequacy using Historical Data
  by Banking Blogger in NEP-HIS blog, 2017-06-13 14:08:03 UTC

  Bank Capital Redux: Solvency, Liquidity, and Crisis By Òscar Jordà (Federal Reserve Bank of San Francisco and University of California Davis), Bjorn Richter (University of Bonn), Moritz Schularick (University of Bonn) and Alan M. Taylor (University of California Davis). Abstract: Higher capital ratios are unlikely to prevent a financial crisis. This is empirically true both for the entire history of advanced economies between 1870 and 2013 and for the post-WW2 period, and holds both within and between countries. We reach this startling conclusion using newly collected data on the liability sid [...]

2017-06-12

• Fintech, Central Banking and Digital Currency
  by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2017-06-12 12:28:11 UTC

  “The advantages of competition and deregulation must be sought in ways that do not impair the payments system or subject it to interruptions and breakdowns.” James Tobin, “ Financial Innovation and Deregulation in Perspective ,” BOJ Monetary and Economic Studies , September 1985. How will financial innovation alter the role of central banks? As the structure of banking and finance changes, what will happen to the mechanisms and frameworks for setting monetary and financial policy? Over the past several decades, with the development of inflation targeting, central banks have delivered price sta [...]

• Sam Watson’s journal round-up for 12th June 2017
  by Sam Watson in The Academic Health Economists' Blog, 2017-06-12 11:00:00 UTC

  Every Monday our authors provide a round-up of some of the most recently published peer reviewed articles from the field. We don’t cover everything, or even what’s most important – just a few papers that have interested the author. Visit our Resources page for links to more journals or follow the HealthEconBot . If you’d like to write one of our weekly journal round-ups, get in touch . Machine learning: an applied econometric approach . Journal of Economic Perspectives [ RePEc ]  Published Spring 2017 Machine learning tools have become ubiquitous in the software we use on a day to day basis. F [...]

• The pervasive externalities of pro-social behaviour: who knew?
  by Nicholas Gruen in Club Troppo, 2017-06-12 05:06:54 UTC

  What is this picture doing here? It is one of the images selected by Google when I typed in “now is the time for complacency”. It clearly has a deep connection with that idea. I can’t comment further except to say that Google has a great deal of AI devoted to these kinds of issues, so I comment the graphic to you. Spillover Effects of Institutions on Cooperative Behavior, Preferences and Beliefs By: Engl, Florian (University of Cologne) ; Riedl, Arno (Maastricht University) ; Weber, Roberto A. (University of Zurich) Abstract: Institutions are an important means for fostering prosocial behavior [...]

2017-06-09

• The Economics of Pollution Exposure
  by Matthew Kahn in Environmental and Urban Economics, 2017-06-09 17:07:00 UTC

  The Fed of Richmond has p ublished an excellent interview with Janet Currie. � � Janet has written several high quality papers investigating the consequences of pollution exposure but this work raises the issue of why people choose to expose themselves to pollution. �In this blog post, I will pose several possibility and sketch some of my old research. 1. Hypothesis #1; � People have rational expectations of how pollution affects them but people differ with respect to their income and poor people choose to live in cheap rent (high pollution) places and are injured by the pollution. 2. �Hypothe [...]

• More on Bitcoin and the conditions for a takeover of fiat money
  by Tony Yates in longandvariable, 2017-06-09 15:17:53 UTC

  Something I did not stress about the likelihood of a crypto-currency takeover in my Alphaville post that I should have done, and which cropped up in a Twitter exchange with Joe Weisenthal, relates to the fact that in theory, and even in history, the unit of account and medium of exchange can differ/have differed. So, here, the question I started with was the low likelihood that Bitcoin or similar might take over soon, given the small value of currency in circulation relative to the value of paper US dollars. [100bn compared to 1.4trn]. In this 2000 paper by Woodford he explains how the central [...]

• 格安運賃による空の旅、メリットとデメリット
  by ? in ライフハッカー［日本版］, 2017-06-09 03:00:00 UTC

  格安運賃による空の旅は、あなたが思っているほど素晴らしいものでは [...]

2017-06-06

• The Data We Have vs. the Data We Need: A Comment on the State of the “Divergence” Debate (Part I)
  by Manuel A. Bautista-González in NEP-HIS blog, 2017-06-06 20:09:58 UTC

  How Well Did Facts Travel to Support Protracted Debate on the History of the Great Divergence between Western Europe and Imperial China? By: Kent Deng (London School of Economics), Patrick O’Brien (London School of Economics) Abstract: This paper tackles the issue of how reliable the currently circulated ‘facts’ really are regarding the ‘Great Divergence’ debate. Our findings indicate strongly that ‘facts’ of premodern China are often of low quality and fragmented. Consequently, the application of these ‘facts’ can be misleading and harmful. URL:  http://econpapers.repec.org/paper/pramprapa/77 [...]

• Why Are NYC's Subway Trains So Old?
  by Matthew Kahn in Environmental and Urban Economics, 2017-06-06 14:23:00 UTC

  Yes, NYC has an old subway system but that doesn't explain the interesting fact presented in the NY Times today that the C trains are over 53 years old. � �Binding budget constraints provide the explanation for why this rich city (that relies on public transit) isn't investing in public capital. �As we document in this NBER Paper , �progressive big cities generously pay unionized public sector workers. � Due to the Buy America Mandate, such cities also pay more than the international price for pieces of capital (read our 2015 JUE paper). �The combination of paying public labor a very high sala [...]

2017-06-05

• One Comment on Dr. Krugman's NY Times Column
  by Matthew Kahn in Environmental and Urban Economics, 2017-06-05 16:52:00 UTC

  Paul Krugman has written a new column   about President Trump and the climate change mitigation Paris Treaty.  Here is a direct quote: "The same goes for claims that trying to rein in emissions will do terrible economic damage and destroy millions of jobs. Such claims are, if you think about it, completely inconsistent with everything Republicans supposedly believe about economics. After all, they insist that the private sector is infinitely flexible and innovative; the magic of the marketplace can solve all problems. But then they claim that these magical markets would roll over and die if we [...]

• Labor's Declining Share: A Primer
  by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2017-06-05 12:43:02 UTC

  “The stability of the proportion of the national dividend accruing to labor […] is one of the most surprising, yet best-established, facts in the whole range of economic statistics [….] Indeed, […] the result remains a bit of a miracle.” J. M. Keynes, “Relative Movements of Real Wages and Profit,” The Economic Journal , March 1939 “It was known for some time that the share of wages and the share of profits in the national income has shown a remarkable constancy in “developed” capitalist economies.” Nicholas Kaldor, “A Model of Economic Growth,” The Economic Journal , December 1957. “The object [...]

2017-06-04

• An Economic Explanation for Why Republicans Do Not Prioritize Fighting Climate Change
  by Matthew Kahn in Environmental and Urban Economics, 2017-06-04 03:55:00 UTC

  The NY Times has published a long article that contains many interesting ideas focused on why Republicans oppose climate change regulation. �The Koch Brothers make an appearance as the Times reporters argue that the Kochs use their $ to influence public opinion. � In this blog post, I will propose a different theory. 1. �Republicans live in the suburbs and live a "high carbon footprint" lifestyle and thus will bear more of the economic incidence of a higher carbon tax than center city progressives. �So, the average Republican faces a higher price if the carbon tax is enacted. �See my papers he [...]

2017-06-03

• June Reading List
  by Dave Giles in Econometrics Beat: Dave Giles' Blog, 2017-06-03 14:16:00 UTC

  Here are some suggestions for you: Ai, C. and E. C. Norton , 2003. Interaction terms in logit and probit models. Economics Letters , 80, 123-129. Hirschberg, J. and J. Lye , 2017. Inverting the indirect - the ellipse and the Boomerang: Visualizing the confidence intervals of the structural coefficient from two-stage least squares. Journal of Econometrics , in press. Kim, I. and S. Park , 2017. Likelihood ratio tests for multivariate normality. Communications in Statistics - Theory and Methods , in press. Knotek, E. S. and S. Zaman , 2017. Financial nowcasts and their usefulness in macroeconomi [...]

• The Tory, Very Sensible, Promise Not To Raise UK Income Tax
  by Tim Worstall in Tim Worstall (Forbes), 2017-06-03 07:39:00 UTC

  There is, as we should all know, a general election going on in Britain and the two major opposition parties, Labour and the Lib Dems, have promised to raise income tax although in different ways. The Tories, aka the Conservatives, have havered over promising to not do so, until today. That two different frontliners say the same thing does show that this is a planned announcement, not just someone making it up on the hoof. And so we’ve a rather clear divide here, between those who would increase the tax burden and those who would not. Given my own proclivities, in favour of a smaller state, I’ [...]

2017-06-02

• Some Nuances Concerning President Trump's Recent Decision on the Paris Treaty
  by Matthew Kahn in Environmental and Urban Economics, 2017-06-02 13:51:00 UTC

  I go to Paris soon. �While I can't speak French, here is what I will say to those who ask me about President Trump's decision. � First, I do not support his decision but the issues here are much more nuanced than either he �or the New York Times argues. 1. Given that we are risk averse and climate change poses a set of "known unknowns" and "unknown unknowns" we need to set up rules of the game to reduce our risk exposure. �Reducing global GHG emissions is a type of insurance policy. �This is why I support the flexible treaty. 2. �While this treaty is weak in terms of enforcement and coddling o [...]

• Living Up to Expectations: How Job Training Made Women Better Off and Men Worse Off
  by maximorossi in NEP-LTV blog, 2017-06-02 12:34:48 UTC

  By: Paloma Acevedo ; Guillermo Cruces ; Paul Gertler ; Sebastian Martinez We study the interaction between job and soft skills training on expectations and labor market outcomes in the context of a youth training program in the Dominican Republic. Program applicants were randomly assigned to one of 3 modalities: a full treatment consisting of hard and soft skills training plus an internship, a partial treatment consisting of soft skills training plus an internship, or a control group. We find strong and lasting effects of the program on personal skills acquisition and expectations, b [...]

• Structural inequality: The case of Sweden
  by maximorossi in NEP-LTV blog, 2017-06-02 12:28:10 UTC

  By: Olof Robling ; Jon Kristian Pareliussen (OECD) Structural trends not directly related to labour market functioning and redistribution have made a sizeable contribution to inequality and poverty in Sweden, but occupy only limited space in the income inequality debate. To fill this gap, we put a quarter of a century of rising inequality in Sweden in a new perspective by quantifying the effect of changing household composition, age structure, industry structure, educational attainment and immigration on inequality. The influence of structural changes on inequality is derived from mi [...]

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