Working Paper
The political economy of labor subsidies
Azzimonti-Renzo, Marina; Krusell, Per; De Francisco, Eva (2006)
We explore a political economy model of labor subsidies, extending Meltzer and Richard's median voter model to a dynamic setting. We explore only one source of heterogeneity: initial wealth. As a consequence, given an operative wealth effect, poorer agents work harder, and if the agent with median wealth is poorer than average, a politico-economic equilibrium will feature a subsidy to labor. The dynamic model does not have capital, but it has perfect markets for borrowing and lending. Because tax rates influence interest rates, another channel for redistribution appears, since a decrease in ...
Working Paper , Paper 06-09

Working Paper
Housing Choices and Their Implications for Consumption Heterogeneity
De Francisco, Eva (2019-05-29)
International Finance Discussion Papers , Paper 1249

Discussion Paper
Stuck At Home? The Drag of Homeownership on Earnings After Job Separation
De Francisco, Eva; Garcia-Cabo, Joaquin; Powell, Tyler (2020-11-12)
This note takes a novel approach to study the question of whether housing ownership has negative effects on workers' mobility. While most of the literature has focused on studying differential migration rates between owners and renters, commonly known as "house-lock", we analyze this question from the perspective of differences in earnings.
FEDS Notes , Paper 2020-11-12-1