Research Papers

We developed a theory of social class based on workplace ownership and authority relations and examined its link to growth in personal income inequality since the 1980s.

We aimed to establish a theoretical framework linking social class to income inequality trends and empirically investigate these dynamics over time. By focusing on between-class income differences, class size variations, and income dispersion within classes, we sought to identify key factors driving the growth in personal income inequality.

Our findings reveal a significant increase of about 60% in between-class income differences since the 1980s, with the relative size of different social classes remaining stable. Decomposition analysis indicates that these income differences substantially contributed to rising personal income inequality, underscoring the importance of class-based perspectives in understanding economic disparities.

We investigated how the timing of exposure to disadvantaged neighborhoods during childhood versus adolescence affects high school graduation and if these effects differ by family income. Tracking 6,137 children from the PSID from childhood through adolescence, we used a structural nested mean model via two-stage regression with residuals to address the joint endogeneity of neighborhood context and family income.

We aimed to understand the nuanced effects of disadvantaged neighborhoods on educational outcomes, considering that these effects might vary depending on the timing of exposure and family economic resources. By identifying critical periods and vulnerable populations, we sought to inform targeted interventions and policies to mitigate the negative impacts of disadvantaged neighborhoods on children’s education.

We find that exposure to disadvantaged neighborhoods, especially during adolescence, negatively impacts high school graduation rates, particularly for children from poor families. This emphasizes the need for policy interventions addressing neighborhood disadvantage and economic support for families, particularly during critical developmental periods, to improve educational outcomes and promote social mobility.

We critically examined Thomas Piketty’s book “Capital in the Twenty-First Century” and its arguments about rising wealth inequality.

We wanted to provide an alternative perspective on wealth inequality and assess the validity of Piketty’s claims and policy prescriptions.

We offer a valuable contribution to the ongoing debate about wealth inequality and challenges some of Piketty’s central arguments.

We examined the exclusion restriction assumption in interpreting IV estimates as a local average treatment effect (LATE) and highlighted cases where this assumption may be violated among inframarginal agents.

We aimed to identify and address potential biases in IV estimates due to violations of the exclusion restriction, which can affect the validity of LATE interpretations, especially among always- and never-takers.

Our findings underscore the need for careful consideration and potential adjustments in IV estimates to ensure accurate interpretations, thereby improving the reliability of econometric analyses involving heterogeneous treatment effects.

We conducted a field experiment to test theories of time-inconsistency, specifically the “Beta-Delta” model of present bias, in the context of saving decisions made by low-income tax filers.

We aimed to understand how present-biased preferences influence the decision to deposit tax refunds into illiquid accounts, providing insights into the tradeoff between immediate and delayed payments.

Our findings provide evidence of significant present bias in financial decisions, with an estimated annual discount rate of 164%, offering valuable implications for designing policies and interventions to encourage saving among low-income individuals.

We examined the inertia in taxpayers’ adjustments to income tax prepayments following changes in tax liability, analyzing how taxpayers’ prepayments change over time.

We aimed to investigate why many US taxpayers receive income tax refunds and to explore the role of inertia in their tax prepayment behavior, beyond the previously suggested precautionary and forced savings motives.

Our findings indicate that default withholding rules significantly impact consumption smoothing, especially for low-income taxpayers, suggesting that policies around withholding can have broader economic implications than previously understood.

We conducted a field experiment to reduce information, administrative, stigma, and procrastination costs associated with the Advance EITC, and simultaneously encouraged 401(k) savings to observe their effects on participation rates.

We aimed to understand the low participation rates in the Advance EITC and to explore whether encouraging 401(k) savings would influence the decision to participate in the Advance EITC, shedding light on the motives behind these financial choices.

Our findings suggest that EITC recipients actively choose to forgo the Advance, and the lack of increased participation with 401(k) encouragement challenges the notion of long-term forced savings motives, highlighting the need for further research into the underlying preferences and behaviors.

We examined James Tobin’s contributions to growth theory over more than four decades, focusing on his emphasis on portfolio substitution between money and capital. We explored how his work stood apart from other neoclassical growth models and its relationship to the evolution of modern growth economics.

We conducted this examination to highlight the unique aspects of Tobin’s contributions to long-run growth theory. His focus on portfolio substitution provided a distinctive perspective on the non-neutrality of money, which diverged from traditional neoclassical models and influenced modern growth economics.

We want to shed light on the distinctive and influential contributions of James Tobin to growth theory. Understanding his emphasis on portfolio substitution and its implications for the non-neutrality of money enhances our comprehension of the complexities in long-run economic growth and informs contemporary economic thought and policy.

We surveyed the econometrics of convergence and examined various empirical claims regarding convergence between rich and poor countries. Our focus was on understanding the relationship between statistical and economic notions of convergence and how disparities in empirical studies may stem from neglecting this relationship.

We conducted this survey because understanding whether convergence exists between rich and poor countries is a pivotal question in new growth economics. New growth theories highlight forms of divergence not explained by neoclassical models, necessitating a thorough investigation of existing empirical evidence.

Our study is important as it addresses the critical issue of economic disparity between countries. By elucidating the relationship between statistical and economic convergence, we provide clarity on the divergent empirical claims, which is essential for formulating effective economic policies and fostering global economic equity

We examined the relationship between the use of regressions and variance contrast methods to uncover social interactions. We illustrated how these methods use different identifying assumptions and are thus complementary. Additionally, we provided formal identification results that extend existing ones for both methods.

We aimed to clarify the complementary nature of regressions and variance contrast methods in identifying social interactions. By doing so, we sought to enhance the robustness and reliability of empirical analyses in this field.

Understanding the complementary strengths of different methods for identifying social interactions helps improve the accuracy and depth of social science research. Our formal identification results provide a stronger foundation for empirical studies, leading to more nuanced and reliable insights into social dynamics.