🚨 PUBLICATION ALERT 🚨 Very happy that our paper has been accepted for publication in Theoretical Economics. We show that, in large random school-choice markets, stability can come with a surprisingly large efficiency cost. A short 🧵 1/7

Theoretical Economics@econtheory.bsky.social · 2d ago

We prove that any stable matching mechanism suffers from systematic inefficiency of striking magnitude: in large random markets, any stable allocation is Pareto-inefficient with high probability, and almost all students can simultaneously improve www.econometricsociety.org/publications...

Technology-driven creative destruction in the product market passes through to worker earnings, from Brice C. Green, Leonid Kogan, Dimitris Papanikolaou, and Lawrence D.W. Schmidt www.nber.org/papers/w35542

Should you pay $500 in premiums to lower your deductible by $250? While classic models say never do this, our new AEJ: Micro paper shows buying a dominated plan can make sense for liquidity constrained people.

Policy Highlights from NBER Summer Institute 2026 www.briefingbook.info/p/policy-hig...

Policy Highlights from NBER Summer Institute 2026

Tariffs, health care, safety net access, labor

briefingbook.info

New paper:"Disagreement in Information Networks" drive.google.com/file/d/1QMMl... I study how new information can generate disagreement through a network & fragility of the network to targeted information inputs. I analyze 3 empirical applications including Congressional Twitter interactions (below)

I am editing a special issue of EJPE on Adam Smith's Wealth of Nations at 250, and the first article by the great Maria Carrasco of the issue has been published, "Subsidiarity and Solidarity in Adam Smith’s Free Society" (abstract in picture.) doi.org/10.23941/ejp...

New post! open.substack.com/pub/paulgp/p...

I’m never going to stop pointing out my recent @fpajrnl.bsky.social which was premised on the idea that higher gas prices could be relevant for foreign policy (some reviewers were skeptical) academic.oup.com/fpa/article/...

Pay Any Price? Measuring Americans’ Willingness-to-Pay for Sanctions on Russia and China

Abstract. Economic sanctions appear to be an inexpensive means for wealthy countries to punish or coerce targets. Not all sanctions are, or will be, cheap,

academic.oup.com

karl rove knausgård@uhactually.bsky.social · 7d ago

I think it’s important to learn the lesson from this: he was untouchable until he drove gas prices through the roof.

It's common to talk about the "frozen labor market" due to the low hire / low fire dynamic. BUT The labor market is hotter than pre-pandemic in one important dimension - more job gains and losses are happening via business openings/closures (and births/deaths).

I'm loving all this Tenet revisionism. It's absolutely his best movie.

the coordination function of forecasts and prophecies seems underappreciated #linklog

Recently accepted by #QJE: “Who Pays for Unions?” by Dodini (@microsamonomics.bsky.social), Stansbury (@annastansbury.bsky.social), and Willen: doi.org/10.1093/qje/...

"Over time, I have reluctantly concluded that my optimism was naïve. I now see evidence-based medicine as a deeply ill enterprise." Manski throwing bombs 💣💣💣 arxiv.org/abs/2607.23660 #statssky 📈📉

I know some people who worked at/with the IRS until last year. The universal message I have received is that it's worse than you think.

Anna Merlan @annamerlan.bsky.social · last wk.

"“You can’t get rid of 30 percent of your staff and expect to be functional,” says Traci DiMartini, the former IRS human capital officer who was one of the first high-ranking officials DOGE pushed out last year. “Things are starting to break.” www.motherjones.com/politics/202...

Random Priority—a popular no-transfer allocation mechanism—is efficient, fair, & simple to participate in. Is it the only mechanism with these properties? Marek Pycia @econ.uzh.ch and Peter Troyan, UVA Economics, answer this long-standing question in the positive. buff.ly/zlSjmC0

robert pattinson and john david washington have amazing chemistry in tenet. maybe we should all just watch that one again

>be economics >1943 >full employment is a political problem, not a technical one >Michal Kalecki (1943) >2026 >"econ is just apologetics for the status quo!!1" >mfw https://doi.org/10.1111/j.1467-923X.1943.tb01016.x

Squished in the middle of this story was this heartbreaking paragraph. Unconscionable.

Brian Lyman@brianlyman.bsky.social · last wk.

A lot of what-the-hell moments in this story, but building a data center in a floodplain in Louisiana is inviting the wrath of Poseidon.

This is excellent. www.ft.com/content/b1d6... The death of secular stagnation

The death of secular stagnation

And the interest-rate reckoning to come

ft.com

Surveying recent advances in the economic theory of identity formation as embedded into an inter-generational cultural transmission process, from @albertobisin.bsky.social and Thierry Verdier www.nber.org/papers/w35506

New data on bank runs reveals that poor fundamentals are key for whether runs lead to bank failure and have severe consequences for the broader economy, from Sergio A. Correia, Stephan Luck, and Emil Verner www.nber.org/papers/w35504

i guess could also be non-housing vs housing. i'll plug this substack article from a PhD student on explanations on the declining labor share that I like quite a bit. jzmazlish.substack.com/p/why-is-the...

Why is the labor share of income declining? An informal meta-analysis

Seven years ago, Thomas Piketty’s Capital in the Twenty-First Century landed on coffee tables across the English-speaking world.

jzmazlish.substack.com

is that figure consensus? this is non-housing labor share from a recent American Economic Review article and it's basically ~flat outside the US and canada. germangutierrezg.com/GutierrezPit...

Duncan Weldon@duncanweldon.bsky.social · last wk.

If you look closely, there’s some sort of pattern here. www.ft.com/content/9741...

Love something the way matt levine loves structured products

Bloomberg News@bloomberg.com · 2w ago

We admire great works of art, architecture and engineering. Why not debt?

Analysis of 11 million US patents shows inventions have spread out in idea space since 1836, helping explain weaker spillovers and lower research productivity, from Ina Ganguli, Jeffrey Lin, Vitaly Meursault, and Nicholas F. Reynolds www.nber.org/papers/w35499

You can find that paper, a micro-simulation analysis of the SSI Restoration Act of 2024 here: CC: @rooseveltinstitute.org rooseveltinstitute.org/publications...

Estimating the Cost and Impacts of the SSI Restoration Act

Stephen Nuñez and Jack Landry find that the SSI Restoration Act would cut poverty among SSI households by nearly 60 percent while updating and strengthening the program.

rooseveltinstitute.org

Important new textbook is open-access at @mitpress.bsky.social —> "The Microeconomics of Artificial Intelligence" by Joshua Gans Review by @maxkasy.bsky.social —> www.aeaweb.org/articles?id=... #EconSky

The Microeconomics of Artificial Intelligence

A comprehensive treatment of the microeconomics associated with the adoption and use of artificial intelligence.It is well recognized that recent advances

direct.mit.edu

This one hit home (+ not in a good way) expansion of high-speed internet in Uruguay *worsens* child development indicators. Why? Parents spend more time online, engage in more high-risk activities. from @kari_colombo @EFailache in JDE

Recently accepted by #QJE: “The Effects of Mandatory Profit-Sharing on Workers and Firms: Evidence from France,” by Nimier-David (@elionimier.bsky.social), Sraer, and Thesmar: doi.org/10.1093/qje/...

The Effects of Mandatory Profit-Sharing on Workers and Firms: Evidence from France*

Abstract. Since 1967, all French firms with more than 100 employees have been required to share a fraction of their excess profits with their employees. Th

doi.org

How equilibrium patterns of production, trade, and input sourcing in complex supply chains are shaped by aggregate risk, from Juanma Castro-Vincenzi, Adry Gracio, Gaurav Khanna, and Nitya Pandalai-Nayar www.nber.org/papers/w35496