Empirical economists have typically used few measures, requiring strong assumptions to identify causality. A wider measurement approach allows richer model estimation. However, new measures complement, rather than substitute, theory in empirical analysis econometricsociety.org/publications/e…

How should we tax capital gains due to rising asset prices? On realization? On accrual? Or should we perhaps tax wealth? The existing public finance literature has a big hole making it unsuitable for thinking about these issues: it doesn't model asset prices! 🧵 on a new paper:

didn’t know programmers had such strong opinions about Liebniz

Delighted to release this paper on Auten & Splinter’s work, painstakingly going through their code & assumptions gabriel-zucman.eu/files/PSZ2024.… We uncover key mistakes—and show that once fixed, their methodology implies the same rise of inequality as in Piketty-Saez-Zucman 🧵

Kahneman: "Irrational is a strong word, which connotes impulsivity, emotionality, and a stubborn resistance to reasonable argument. I often cringe when my work with Amos is credited with demonstrating that human choices are irrational, when in fact our research only showed that

New research uncovers key mistakes in Auten & Splinter’s estimates of US inequality🇺🇸 After fixing them, Thomas Piketty, E. Saez & Gabriel Zucman show that Auten & Splinter's methodology shows the same increase in inequality as their previous estimates. ▶️t.ly/aFUHL

It looks like there might be a substantial fall in wealth inequality tomorrow morning...

Pretty surprising fact!

Join us in welcoming our new graduate students Mohammad Naderitabar mohammad Naderitabar, Artschil Okropiridse, Sofia Giovannetti Sofia Giovannetti, Anton Arbman Hansing, Ehsan Sabouri Ehsan Sabouri, and Leiv Storesletten! su.se/institute-for-…

A review of key developments in the Heterogeneous Agent New Keynesian literature through the lens of a simple model, with ready-to-use code for the main model and many extensions, from Adrien Auclert, Matthew Rognlie, and Ludwig Straub nber.org/papers/w32991

Thrilled to release this working paper, joint with Matt Rognlie and Ludwig Straub, which we prepared for next year’s Annual Review of Economics. In it, we provide an overview of the recent “HANK” literature studying fiscal and monetary policy with heterogeneous agents.

Together with JoVanBiesebroeck we just finished the paper "Demand, Competition and Public Policy in the Automobile Industry - An Overview of Research since BLP" Happy reading, while waiting to see whether Empirical IO will get a Nobel prize this year drive.google.com/file/d/1RPN8NW…

This paper has just been published at the JPE. When a new firm enters a market with an established incumbent, its primary challenge is to raise consumer awareness of its product. Using random graphs, we examine price competition. See: journals.uchicago.edu/doi/10.1086/73…

2¹³⁶²⁷⁹⁸⁴¹−1, discovered today, is the largest known prime. It's a Mersenne prime (2ᵖ-1), which are easier to find. It took nearly 6 years for the GIMPS software to find it after the previous largest known prime. It was also the first Mersenne prime found using GPUs.

Hey #EconTwitter, I'm on the job market with a paper about open source software. OSS is a global public good, widely used and provided by the private sector, but the target of recent industrial policy. Paper: jeffgortmaker.com/files/Open_Sou… 1/

New paper: benjaminmoll.com/challenge/

Week 1: This year, I'll (try my best to) summarize & bring to attention one cool economic theory paper a week (so hopefully 52 in total). First up is one of my all time favorites: Bargaining and Reputation by Dilip Abreu and Faruk Gul. It is theoretical elegance, personified.

In "Some Pleasant Sequence-Space Arithmetic in Continuous Time" with Shlok Goyal we derive new formulas and algorithms to solve continuous time heterogeneous agent models with sequence-space methods. It is 3 times faster than discrete time! Code/github: shorturl.at/tcL7A

1/ Week 26: After a hiatus, the theory paper of the week is back with a beautiful classic that spawned a huge literature across fields: Temporal Resolution of Uncertainty and Dynamic Choice (1978) by Kreps and Porteus in Econometrica. Let's start with a thought experiment: 🧵

Health shocks within couples cause broad and lasting effects on the partner's health, including increased mortality and mental health deterioration, from Carolina Arteaga, Natalia Vigezzi, and Pilar Garcia-Gomez nber.org/papers/w33994