Dirk Krueger

Why are married women less likely than men to leave agriculture, when single women aren’t? Couples specialize: wives absorb home production, leaving too few market hours to justify the fixed cost of a non-farm job. A Roy model on China matches the 12pp married-worker gap.

The International Economic Review has just published an exciting new paper by Huoqing Cao, Chaoran Chen and Xican Xi on Home Production and Gender Gap in Structural Change. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…

In “Social Status, Inequality, and Redistribution,” that has been accepted at the International Economic Review, Gradstein and Ventura show how status concerns can reinforce inequality and weaken redistribution, generating persistent high- and low-inequality equilibria.

The International Economic Review has just published an exciting new paper by Mark Gradstein and Luigi Ventura on Social Status, Inequality, and Redistribution. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…

U.S. interstate banking deregulation in the 1980s raised establishment entry and real GDP. Our general equilibrium model shows how stronger bank competition expands credit access, influences entrepreneurs’ occupational choices, and reallocates labor toward more productive firms.

The International Economic Review has just published a new exciting paper by Toshihiko Mukoyama and Gang Zhang on Entrepreneurship and Financial Deregulation. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…

When is firm entry efficient with heterogeneous firms and endogenous markups? We show that market entry is efficient in one-sector and symmetric two-sector Melitz-Ottaviano economies, but demand asymmetry can drive excessive entry into high-demand sectors.

The International Economic Review has just published a new exciting paper by Kyle Bagwell and Seung Hoon Lee on Entry and Welfare in General Equilibrium With Heterogeneous Firms and Endogenous Markups. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…

We develop a rational Walrasian model of greater-fool bubbles where agents follow and reinforce momentum in a market-timing game. Signal extraction prevents unraveling, so finite bubbles persist without irrational traders, knife-edge conditions, or opaque market clearing.

The International Economic Review has just published a new exciting paper by Luis Araujo and Antonio Doblas-Madrid on Rational Expectations Fools' Bubbles. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…

College loans expand education access but may distort human capital investment through repayment burdens. Using a structural model on NLSY79 data, we find income-driven repayment increases education, lifetime earnings, welfare, and government revenue vs. fixed repayment plans.

The International Economic Review has just published a new exciting paper by Chao Fu, Hsuan-Chih Lin and Atsuko Tanaka on College Loans and Human Capital Investment. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…

Tariffs generate different outcomes across US states. States specializing in industries protected from foreign competition may benefit, others may lose. We show how regional economic structure shapes distribution of gains & losses from trade policy, states’ preferences toward it

The International Economic Review has just published a new exciting paper by Ana Maria Santacreu, Michael Sposi and Jing Zhang on What Determines State Heterogeneity in Response to U.S. Tariff Changes?. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…

The paper shows that in heterogeneous agent incomplete markets models the price level is determined from the asset market clearing condition. Fiscal and monetary policy then jointly and uniquely determine the finite steady-state price level and the inflation rate.

The International Economic Review has just published a wonderful paper by the late Marcus Hagedorn (with special thanks to Iourii Manovskii) on A Demand Theory of the Price Level. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…

Are men & women evaluated differently? Yes! Erkal et al. refer to this as the “gender criteria gap”. Men’s bonuses & penalties are driven by both outcomes & beliefs about their actions. Women are evaluated based on outcomes only; beliefs about their intentions carry no weight.

The International Economic Review has just published a new exciting paper by Nisvan Erkal, Lata Gangadharan and Boon Han Koh on Gender Criteria Gap in Evaluation: Role of Perceived Intentions and Outcomes. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…

This paper studies a novel two-way feedback between credit and labor market frictions. Collateral constraints amplify capital demand volatility, affecting labor demand. Search frictions damp wage adjustment, increasing net worth volatility and feeding back into capital demand.

The International Economic Review has just published a new exciting paper by Yulia Moiseeva on The Interaction Between Credit and Labor Market Frictions. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/ie…