Important @sffed paper: What if supply constraints aren't driving housing price growth, and instead, increasingly wealthy people have bid up prices in certain metros? Construction has tracked well with population, but net income drives the divergence:

"Antitrust and Industrial Policy: A Misunderstood Relationship." This is a new draft academic paper I've been working on for a while (serious comments welcome). It suggests that the antitrust regime should be understood as a part of the industrial policy toolkit, as opposed

When states like Colorado passed policies requiring employers to disclose salary information in job postings, what happened? It increased competition, and raised wages, without harming employment or changing skill requirements. Improved functioning of markets, helped workers.

Look at what happens to male teacher salaries (blue line) v.s. female teacher salaries (red line) after collective bargaining laws expire.

This is interesting: contractionary monetary policy RAISES rents. Not what you would expect — we normally contract the money supply to curb inflation. But higher interest rates makes homes more expensive and more people become renters --> rents go up.

Presentamos en el #Vaticano el Reporte del Jubileo, un enorme trabajo colectivo de más de 30 economistas y expertos legales de todos los continentes que nos encomendó el Papa Francisco para trazar un camino para la solución de las crisis de deuda y del desarrollo que están

Nuestro post en @nadaesgratis sobre salario mínimo y consumo

See our full paper here: https://t.co/gFAdqLGVV3. Thanks

Given the state of the U.S. economy and fiscal history, it’s hard to avoid the conclusion that restoring revenue must rely on taxing those best positioned to contribute: high-income earners and the wealthy. In our view, this is the only fiscally and macroeconomically responsible

We believe this is an important point, as the emphasis on crowding out may provide a pretext for further cuts to programs like Medicaid, which deliver long-run supply-side benefits but are treated in macro policy models merely as spending or transfers.

However, we are concerned that much of the policy debate has focused too narrowly on this issue. While the macro impact of debt might be important, it cannot be assessed in isolation from the sources of the deficit.

In the paper, we also provide macro estimates that include crowding-out effects, which contribute an additional –0.3 to –0.4 percentage points to the overall contractionary impact.

Despite their impact on investment, broad-based capital cost recovery provisions (such as full expensing) may not be the most effective policy tools, especially if the objective is to stimulate investment in struggling communities, which likely requires a more targeted approach.

In our estimates, the proposed repeal of the IRA tax credits accounts for roughly half of the bill’s overall contractionary effect. Bonus depreciation and other business tax base provisions make the macro impact close to neutral if assumed to be permanent, though this comes at

By 2034, the top 10% see their after-tax incomes rise by over 2%, while the bottom 10% experience a decline of around 5%. These estimates closely align with the CBO’s conventional analysis released yesterday, though our model shows a somewhat larger impact at the bottom due to

We estimate GDP would be ~0.5% lower in 10 yrs, >1% lower in 30 yrs. Revenue will be 6.85% lower by 2034. 4/10

Many of the major provisions are highly regressive and deliver no meaningful economic gains, with little to no support in the academic literature. These include cuts to top rates, the AMT exemption, the extension and expansion of the QBI deduction, the SALT deduction, and

The fundamental problem with the House bill is that it treats tax cuts for the wealthy as a red line, even in the face of limited fiscal space, forcing a false choice between deficit reduction and social insurance. It ends up failing on all fronts: a weaker safety net, greater

I have published a new paper with @VasudevaRamasw1 and @jamontecino providing a comprehensive assessment of the OBBB, including comments on the economics of the bill’s provisions and estimates of dynamic macroeconomic and distributional effects. Thread🧵1/10

Hoy @LaVanguardia recoge los resultados de nuestro estudio sobre los efectos de la subida del salario mínimo de 2019 en el consumo: