Best of #econtwitter - Week of May 22, 2022 [2/3]

May 23, 2022

Welcome readers old and new to this week’s edition of Best of Econtwitter. Thanks to those sharing suggestions, over email or on Twitter @just_economics.

This is part two of three.

Editorial note: This week marks the two-year birthday of the newsletter 🥳. Always happy to see people getting value out of the weekly emails — we passed the 2,000-subscriber mark earlier this year — especially relative to the low marginal cost of production.

A two-question survey / more general opportunity for feedback here! Only you can prevent selection bias, by filling it out :)

Paper summaries

Ivan Werning 🇺🇦 🌻@IvanWerning

It is an absolute pleasure to release this new work, joint with the great Emmanuel Farhi and Alan Olivi: "Price Theory for Incomplete Markets" (the title is a wink at my alma mater). At long last, as it has been a very long haul. drive.google.com/file/d/1yi8p5z… A brief thread 1/n

10:29 AM · May 16, 2022

161 Reposts · 820 Likes

Johannes Wieland@profwieland

Why did housing prices and rents increase at an unprecedented pace over the last two years? In a new paper with John Mondragon @sffed, we show that the shift to remote work accounts for more than half of the overall increase in housing costs. nber.org/papers/w30041

6:32 PM · May 18, 2022

137 Reposts · 606 Likes

Aurélien Goutsmedt@AGoutsmedt

1/ With rising internationalization of economics since the 1970s, has European macroeconomics maintained or developed some specialties in comparison to the US? That's the question of our paper with @alxndr_trc : aurelien-goutsmedt.com/publication/ee… A quick summary of our article 👉

aurelien-goutsmedt.com

An Independent European Macroeconomics? A History of European Macroeconomics through the Lens of the European Economic Review | Aurélien Goutsmedt

1:59 PM · May 16, 2022

14 Reposts · 38 Likes

Alp Simsek@alpsimsek_econ

The Fed usually stabilizes markets (Fed put) But recently it did exactly the opposite When does the Fed stabilize markets? When does it destabilize? New paper with Caballero that sheds light on the love-hate relationship between the Fed and markets 1/16 dropbox.com/s/m9zsyrxxwett…

10:56 PM · May 20, 2022

138 Reposts · 602 Likes

Toni Whited 🇺🇦 😷@toniwhited

Our new paper on central bank digital currency is online! Here's the question and how it works. We ask how CBDC affects bank lending, given extant frictions in the banking system. We go about it using a type of model that has been central to our research agenda. 1/8 🧵

SSRN @SSRN

This paper studies how introducing a central bank digital currency can affect the banking system, showing that #CBDC can replace a significant fraction of bank deposits, especially when it pays interests: 🏦 https://t.co/YO9d3tBMbU @toniwhited, @YufengWu14, @kairong_xiao

8:36 PM · May 20, 2022

23 Reposts · 120 Likes

Andrew Chen@achenfinance

One fav papers, of the few that changed my views, is Amromin and Sharpe 2005. They show that households have exactly the -opposite- view on expected returns and recessions that I was taught in my Ph.D. This paper is also the saddest example of the Matthew effect I know of. 🧵

6:18 PM · May 20, 2022

7 Reposts · 60 Likes

Javier Bianchi@JavierBianchi7

Macroprudential policy has become a new pillar of the macro toolkit. But how should it be integrated with the traditional macro policies and what are the implications for global welfare? Brief thread🧵on joint work with Louphou Coulibaly @LouphouC

NBER @nberpubs

An integrated analysis of optimal monetary and macroprudential policies in an open economy, from @javierbianchi7 and @LouphouC https://t.co/lU7O6KwmDP https://t.co/lmlVLTY1KC

4:11 PM · May 19, 2022

35 Reposts · 105 Likes

João B. Duarte@JoaoBDuart3

🚨 New Working Paper 🚨 We show that monetary policy (MP) affects homeownership decisions, unveiling a new channel through which MP affects the economy. Two relevant policy implications emerge.

FedResearch @FedResearch

Monetary policy shocks are at least as important for variation in the U.S. homeownership rate as for variation in the CPI growth rate. https://t.co/YBhmLe9p3D https://t.co/QfgSN3S6OU

1:54 PM · May 19, 2022

25 Reposts · 120 Likes

Brendan Nyhan@BrendanNyhan

Switching FB users to a chronological feed instead of algorithmic ranking sent exposure to dubious content "through the roof" - new FB paper documentcloud.org/documents/2174… via Gizmodo gizmodo.com/facebook-paper… For more, see @deaneckles below - issue far more complicated than people think

Dean Eckles @deaneckles

How does algorithmic ranking in social media work? How can we assess algorithmic impact & amplification? What can policy-makers do here? My written testimony from today's Senate hearing: https://t.co/ikqNhdhuWR https://t.co/8143uiMZlX

2:34 PM · May 16, 2022

13 Reposts · 34 Likes

Gabriel Mihalache@gp_mihalache

.@mazzimon77 @laukarpuska and I are excited to circulate a new draft! We show that a parsimonious legislative bargaining model explains well the growing share of entitlements in public spending in an environment with unequal growth, where incomes are stagnant at the bottom. 1/4

NBER @nberpubs

Entitlement programs' growth since the 1960s can be explained through a political economy model with bargaining over taxes and entitlements combined with a process of unequal growth, from @mazzimon77, @laukarpuska, and @gp_mihalache https://t.co/O6MsNSrxrY https://t.co/GWWtBiwe6I

4:06 PM · May 19, 2022

6 Reposts · 45 Likes