Webinar Series

|

Pandemic

|

May 2020

In response to the ongoing COVID-19 pandemic, the US government brought about a collection of fiscal stimulus measures: the 2020 CARES Act. We study direct payments to households starting in April 2020 using high-frequency transaction data. We explore the response of household spending to these stim...
Keywords: Consumption, COVID-19, Stimulus, MPC, Household Finance, transaction data
  • View
  • Download
  • Bookmark
  •    |   

Senior Fellows/Fellows

|

Senior Fellows/Fellows

This paper discusses the effect of income inequality on selection and aggregate productivity in a general equilibrium model with non-homothetic preferences. It shows the existence of a negative relationship between the number and quantity of products consumed by an income group and the earnings of o...
Keywords: Income inequality, productivity, International trade
  • View
  • Download
  • Bookmark
  •    |   

Senior Fellows/Fellows

|

Senior Fellows/Fellows

We draw upon recent advances that combine causal inferences with machine learning, to show that poverty is the key income distribution measure that matters for development outcomes. In a predictive framework, we first show that LASSO chooses only the headcount measure of poverty from 37 income distr...
Keywords: poverty, inequality, income distribution, economic development
  • View
  • Download
  • Bookmark
  •    |   

Annual Conference

|

Household Finance

|

May 2024

Using a novel representative sample of digital payment and fund investment data, we observe a robust U-shaped relation between individual investors’ consumption and their financial wealth shocks. Contrary to the prediction of the wealth effect, individuals increase their consumption shortly after ...
Keywords: Wealth shocks, Consumption responses, Behavioral finance, Individual investors, Financial retail therapy, Digital payment data
  • View
  • Download
  • Bookmark
  •    |   

Senior Fellows/Fellows

|

Senior Fellows/Fellows, Pandemic

We develop a model of pandemic risk management and firm valuation. We introduce aggregate transmission shocks into an epidemic model and link valuations to infections via an asset-pricing framework with vaccines. Infections lower earnings growth but firms can mitigate damages. We estimate a large ...
Keywords: COVID-19, stochastic epidemic model, transmission volatility, Risk management, stock valuation
  • View
  • Download
  • Bookmark
  •    |