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MicroEconInsights

@micro_econ

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Distilling research for public debate. RTs and Following ≠ endorsement.

London, England
Joined October 2015
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@micro_econ
MicroEconInsights
2 months
Additionally the paper finds no evidence of bunching around the tax threshold in Norway, suggesting limited tax evasion. Read here:
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microeconomicinsights.org
The desirability of wealth taxation depends on the extent to which it distorts savings decisions. However, economic theory does not provide firm guidance on the magnitude or even the sign of this...
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@micro_econ
MicroEconInsights
2 months
The paper finds that higher exposure to wealth taxation causes households to save more as opposed to less. This increase in saving is primarily financed by increased labor earnings, rather than lower consumption.
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@micro_econ
MicroEconInsights
2 months
📕 NEW from @mariusring: 'Wealth Taxation and Household Saving: Evidence from Norway' Quasi-experimental variation in the Norwegian wealth tax is used to study how wealth taxation affects households’ saving and labor supply behaviour.
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@micro_econ
MicroEconInsights
2 months
The average subsidized firm in the data promises to create 1,400 jobs and receives a subsidy worth $150 million over 10 years. Read here:
microeconomicinsights.org
State and local governments regularly offer large discretionary subsidies to attract firms, and the accompanying jobs, to their jurisdictions. In fact, this deployment of subsidies is estimated to be...
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@micro_econ
MicroEconInsights
2 months
The deployment of subsidies is estimated to be one of the largest economic development tools used in the United States. The paper finds that the scope for discretionary subsidies to be an effective tool to reduce geographic inequality in the U.S. is extremely limited.
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@micro_econ
MicroEconInsights
2 months
📕 NEW from @cailin_slattery: 'Bidding for Firms: Subsidy Competition in the United States' Firms are the clear winners from subsidy competition.
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@micro_econ
MicroEconInsights
3 months
"If private firms cannot profitably finance college with equity or state-contingent debt, should the government subsidize these contracts?" Read here:
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microeconomicinsights.org
Economists have long advocated for alternative financial contracts to mitigate the risks of investing in education (Barr et al. 2017; Chapman 2006; Palacios 2004; Zingales 2012). Most famously,...
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@micro_econ
MicroEconInsights
3 months
"The main finding is that adverse selection – the sorting of individuals with worse - than-average outcomes into insurance-like contracts – has unraveled private markets for these products, making them unprofitable for firms to offer."
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@micro_econ
MicroEconInsights
3 months
New from @djh1202 and @nhendren82: 'A better way to pay for college?' There is a better way to fund undergraduate study, according to new research on the US.
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@micro_econ
MicroEconInsights
3 months
Rural-urban migration may be a key pathway out of poverty. Households that sent a migrant saw big increases in consumption, of around 30% on average per household member. Our analysis also suggests that families send a migrant out only as a last resort.
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@micro_econ
MicroEconInsights
3 months
New from @LagakosDavid, Mushfiq Mobarak @Yale and Michael Waugh @nberpubs: 'Welfare Effects of Subsidizing Seasonal Migration' Migration experiments in rural Bangladesh offer a unique perspective on the potential benefits and costs of out-migration for rural individuals.
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@micro_econ
MicroEconInsights
5 months
New from @juliana_londono (UCLA) and Javier Ávila-Mahecha: Based on Colombia’s long experience with wealth taxes, a new study reveals both promise and peril. Read our new article here:
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microeconomicinsights.org
Yet because few countries levy wealth taxes, relatively little is known about the actual responses of wealthy individuals when governments tax their assets – especially in countries outside Europe....
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@micro_econ
MicroEconInsights
7 months
The findings raise urgent new questions about how labor demand changes as new work emerges, and how AI technologies will reshape tasks and occupations in the decades ahead. Read here:
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microeconomicinsights.org
Casual observation and historical evidence suggest this picture is incomplete: as employment in previously labor-intensive sectors such as agriculture, textiles, mining, and manufacturing has eroded,...
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@micro_econ
MicroEconInsights
7 months
Our new article points to an implicit “race” between task displacement and new task creation in displacing and reinstating labor demand, and suggest that automation may now be pulling ahead in this race.
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@micro_econ
MicroEconInsights
7 months
New from @davidautor, Caroline Chin, Anna Salomons & Bryan Seegmiller: Technological change transforms economies and labor markets, reshaping the types of jobs that are available, the wages they pay, and the skills they require.
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@micro_econ
MicroEconInsights
8 months
New from Ulrich Doraszelski, Katja Seim, Michael Sinkinson, and Peichun Wang: Ownership concentration and strategic supply reduction Read our new article here: https://t.co/C6Z9qAIMjB
microeconomicinsights.org
In March 2016, the Federal Communications Commission launched one such auction, the most complex spectrum auction it had ever conducted.  The agency was seeking to solve a bedeviling problem. The...
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@micro_econ
MicroEconInsights
9 months
New from @frankverboven & @BYontcheva: Comparatively little is known about the impact of geographic entry restrictions and price regulation, which go beyond general occupational licensing requirements. Read our new article here:
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microeconomicinsights.org
Occupational licensing regulations are common across many service sectors, including health, education, transportation, and legal services. These regulations affect up to 20-30% of workers in both...
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@micro_econ
MicroEconInsights
10 months
These differences are often attributed to variation in decision-maker preferences, sparking calls to standardize decision-making. The paper suggests an alternative framework where experts differ not only in preferences but also in diagnostic skill, with both shaping decisions.
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