Economic Inquiry

Economic Inquiry

@ei-sky.bsky.social

Published since 1962, the goal of Economic Inquiry is to advance scientific knowledge in the domain of economics. As such we seek to publish work across all fields in economics.

127 followers106 following114 posts

Can foreign borrowing help pay for a nation’s growing health bill? This paper adds international government bonds to a UK-calibrated health deficit model. Under income, innovation and aging shocks, deficit-financed health spending generates higher welfare than a balanced budget regime. #econsky

Who captures the gains when markets are liberalized? Using the staggered rollout of China’s Free Trade Zones across 21 provinces, this paper finds those gains tilt toward political power: state-owned and politically connected firms gained more in return on assets and productivity. #econsky

Do high school classmates shape what students study at university? This paper finds lasting effects on major choice that vary by gender, school type and grade. In British Columbia public schools, more female classmates drew girls toward STEM. In independent schools, the effect reversed. #econsky

This paper proposes a new way to choose regression discontinuity models. Candidate models are evaluated at placebo cutoffs away from the threshold, where the effect is assumed zero. The selected models have lower root mean squared error than the CCT approach in almost every simulation. #econsky

Preparing a bid is costly, and only the bidder knows how costly. With buyers privately informed about both their valuation and their entry cost, the revenue-maximizing mechanism is still a posted price, and it screens on a single number: net value, valuation minus entry cost. #econsky

The number and the framing are not separate choices. A field experiment on voluntary donations in Costa Rica finds that the same amount performs differently depending on whether it describes others' giving or suggests your own. Low figures favor the first framing, high figures the second. #econsky

Public subsidy of minor league ballparks is a $6.81B story. @jcbradbury.com creates the first systematic database of Minor League Baseball stadium subsidies across 134 ballparks, then finds localities cut in MLB's 2021 reorganization were no poorer, undermining the investment rationale. #econsky

Why do people play the lottery? This paper shows that if people compare their income to a personal reference point buying tickets can be rational for those who fall short of it. The poorer you feel relative to that target, the stronger the pull. #econsky

Offering leniency to whistle-blowers can help catch corruption. Offering it to both sides of a bribe can backfire. This paper shows China's 1997 criminal law reform combined leniency for bribe-givers and bribe-takers — and corruption prosecutions fell sharply afterward. #econsky

Extending Blair & Kaserman (1978): This paper shows that tying and Full Integration are not always equivalent. The authors derive the necessary & sufficient conditions for their equivalence and explore Partial Integration under general production tech. tinyurl.com/4ph6cw2u #econbluesky

EI has added a new award category this year, Outstanding Data Package. These awards were voted on by our Data Team for data packages that exemplify best practices in research transparency. Authors put a great deal of work into these packages and we believe their efforts should be acknowledged.

How do post-Dobbs abortion bans affect social safety nets? Using synthetic DiD, this paper finds total bans led to a 1.57% increase in monthly birth rates and a 4.3% jump in postpartum WIC participation in 2023, resulting in an extra $6.9M in food costs. tinyurl.com/ydb82fyj #EconSky

How do proxy methods alter findings on racial disparities? This paper compares HMDA, voter rolls & name algorithms. The authors finds that matching choices can change empirical conclusions about racial/ethnic disparities depending on which method is used. tinyurl.com/58pjczdh #EconSky

Many fiscal models lack micro-validity. This study shows how partial insurance on unemployment and firm entry jointly can drive a positive consumption multiplier. It reconciles theory with data using parameters consistent with micro evidence on job loss and markups. tinyurl.com/56c7xk7c #EconSky

Does the pain of paying limit our generosity? While cash is physical and painful to give away, this study finds that mobile payments lead to significantly higher donations. This gap emerged after the COVID-19 lockdown accelerated our familiarity with digital wallets. tinyurl.com/bddsu6x2 #EconSky

Should we tax AI or use trade tariffs to protect workers? This study finds that tariffs on AI-using goods actually exacerbate the fall in skilled wages. However, a direct AI tax can neutralize task loss and income distortions if the price of AI is sufficiently low. tinyurl.com/2u6eb8n9 #EconSky

Is union decline just about a lack of worker demand? This paper shows that new union locals enter with higher TFP and lower prices, yet this doesn't force incumbents to improve. Moreover entry rates of union locals are low, with high exit rates. tinyurl.com/488e638s #econsky

Do religious beliefs affect responses to fertility incentives? This paper examines the 1982 Soviet Baltic expansion of maternity benefits. The authors find a 24.2% increase in birth probability, with the effect being driven entirely by women from religious childhoods. tinyurl.com/ucrz5n66 #econsky

While inequality rises in the West, Taiwan’s fell by 8.4%. This paper documents that this drop was likely driven by minimum wage hikes. Most of the reduction happened within firms, compressing the lower tail of the distribution while the upper tail remained stable. tinyurl.com/4bdwjnzy #EconSky

Does the average EITC effect hide the truth? This paper shows policy impact shifts by income: while credits boost work for low earners, they decrease hours near the phase-out. This heterogeneity across the income distribution proves average effects miss the story. tinyurl.com/yt9vbhzz #EconSky

Can tax news influence business cycles? This paper shows that anticipated tax cuts can actually hinder recovery. In supply-driven recessions, they trigger a sharper contraction than in demand-driven ones. Moreover, higher macro uncertainty causes a bigger contraction. tinyurl.com/3rtucnph #econsky

Is remote work a cultural choice? This paper finds that individualism significantly boosts WFH. Using an epidemiological approach, comparing immigrants in the same labor markets, the authors find that a 10-point index increase raises WFH likelihood by ~4pp. tinyurl.com/47tkd2dn #EconSky

Does political conflict hurt local tourism? This study on the 2012 China-Japan boycott shows that high-dependency prefectures lost over 27% of Chinese visitor nights. Effects remained significant even 24 months later, highlighting a need for market diversification. tinyurl.com/3j45n435 #EconSky

Is "generational wealth" the main driver of the racial gap? This study shows White families' wealth is 6.8x that of Black families, but including DB pensions narrows the gap to 4.4x. However, intergenerational transfers explain little of the disparity. tinyurl.com/3wr8rhdz #EconSky

Would a manager hire a firing consultant to let go of a friend? This study finds that social distance significantly shapes delegation decisions. Strengthening workplace ties reduces the likelihood of managers exploiting moral wiggle room to avoid direct responsibility. tinyurl.com/2smvre5r #EconSky

Do labor market frictions matter for monetary policy? This paper shows that frictions can amplify the effect of inflation target shocks but play a minor role in temporary nominal interest shocks. Evidence from the U.S. and the Euro Area corroborates the findings. tinyurl.com/u3x8b5sr #econsky

Are women more cooperative in Congress? Building on previous literature, this paper finds that while bipartisan cooperation depends on ideology, in the last decade, women recruited 15% more total co-sponsors than their male colleagues across both parties. tinyurl.com/357zjcjw #econsky #polisci

Why does household investment (HI) lead the business cycle? This paper finds that the Index of Consumer Expectations (ICE) leads HI by two quarters. Using VAR and Granger causality, the authors show HI transmits these confidence shocks to the broader economy. Read: tinyurl.com/3azvzb8h #econsky

Has the weakening of oil price pass-through to inflation reversed? This paper shows a reversal in pass-through dynamics, finding that second-round effects operating through inflation expectations are an important driver of U.S. core inflation. Read more: tinyurl.com/2vpr3tuw #econsky

Does federal investment in broadband programs actually pay off? This paper analyzes the $2.5B Broadband Initiatives Program (BIP) to measure its economic impact, finding through real estate data that the capitalized benefits are 2.8 times the investment costs. Read: tinyurl.com/5xhvnkey #econsky

Does the "poor stay poor" conclusion still hold? This paper uses Markov chains and dynamic development accounting to test relative GDP persistence. The findings confirm that relative income traps remain a robust feature of the cross-country distribution. tinyurl.com/m2hh3xnu #econsky

How robust is the link between de-prosecution and crime? This paper revisits the Philadelphia case study (Hogan 2022) to explore how different SCM specifications (including donor pool composition and pre-period length) impact the estimated effects on homicide. Read more here: tinyurl.com/mtfy5thd

Why does performance pay often fail for teachers and doctors? This paper models production uncertainty where workers don't know which efforts actually drive results. They show that even with perfect measurement, output-based incentives can backfire. Read more: tinyurl.com/ykx4w83p #econsky

What happens to fan interest when a football league champion is decided weeks early? Using 20 years of Google search data, this paper tests the Uncertainty of Outcome Hypothesis in European football. Does early crowning kill attention? Read more: tinyurl.com/7rufnvhk #econsky #football