Search Results
Briefing
How Secondary Trade Affects Social Welfare in an Over-the-Counter Market
Over-the-counter markets with secondary trade and an unfixed quantity of assets suffer from inefficiency stemming from a double-sided hold-up problem between consumers and intermediaries.The inefficiency cannot be resolved through bargaining power alone, since efficiency would require both intermediaries and consumers to have full bargaining power.A budget neutral tax/subsidy scheme could resolve this inefficiency and increase social welfare by up to 13.3 percent.
Journal Article
Research Spotlight: Responding to a Spouse's Lost Income
Does a spouse increase the amount they work when their spouse loses income? Finding proof of what economists call the "added worker effect" has historically been difficult. It seems intuitive that people would be incentivized to balance out their spouse's wage loss to prevent large drops in household income, but economic work to date has found little evidence that this is the case.
Briefing
Modelling Unemployment Insurance in the Real World
We create an economic model of unemployment insurance designed to accurately capture the life cycle of workers.A socially optimal unemployment insurance program would replace 63 percent of a worker’s income for six months after termination.This result bridges the previous disagreement between partial and general equilibrium models of unemployment insurance.