We support dynamic research that can help solve the great economic and social challenges of the 21st century. INET’s research is interdisciplinary, incorporating concepts from history, political science, and the humanities.
Research Papers
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Working Paper Series
Lost in Deflation
Apr 2019
Why Italy’s woes are a warning to the whole Eurozone
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Working Paper Series
New Evidence on the Portfolio Balance Approach to Currency Returns
Feb 2019
Asset markets are indispensable in harnessing society’s diverse views and insights about future business performance. But those views are shaped as much by emotion and crowd mentality as by rational expectations.
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Working Paper Series
The Contributions of Socioeconomic and Opioid Supply Factors to Geographic Variation in U.S. Drug Mortality Rates
Feb 2019
Economic distress in rural areas and opioid exposure in cities are key indicators of overdose deaths
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Working Paper Series
Labor Laws and Manufacturing Performance in India: How Priors Trump Evidence and Progress Gets Stalled
Feb 2019
For years, governments in India and much of the developing world have followed the advice of a paper arguing that labor regulations actually hurt workers. The problem? The research was wrong.
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Working Paper Series
Estimates of the Natural Rate of Interest and the Stance of Monetary Policies: A Critical Assessment
Jan 2019
Starting with the literature on the estimates of the natural rate of interest, this paper critically analyzes the modern practice of identifying the benchmark rate of monetary policy with an equilibrium or neutral interest rate reflecting “fundamental forces” unaffected by monetary factors.
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Working Paper Series
Executive compensation in Europe: Realized gains from stock-based pay
Sep 2018
This paper adds to the empirical evidence on the extent to which stock-based pay incentivizes and rewards European corporate executives. It shows that the actual realized gains (that is, take-home compensation) from stock-based pay of CEOs in European publicly-listed firms may be underestimated by the use of “estimated fair value” measures. The paper also documents the heterogeneity among countries in terms of the levels and components of CEO take-home pay. We base our work on a sample of 301 large, publicly-traded companies listed in the S&P Europe 350 index from 11 EU countries: Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Spain, Sweden and United Kingdom for the fiscal year 2015. Through analyzing companies’ annual reports, we have hand-collected data on various elements of compensation of the company’s CEO in 2015, including the gains that executives realize from stock-based pay. We document that on average half of the total compensation of the European CEOs in our sample is stock-based, measured by actual realized gains, with large differences among countries. Although in some European countries the majority of total compensation is stock-based, the proportions are still well below those that prevail in the
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Working paper
A Distorting Mirror: Major Media Coverage of Americans’ Tax Policy Preferences
Apr 2018
Over the last four decades, Americans have consistently told pollsters that they favor higher taxes on business and the wealthy, even as tax policy has moved sharply in the other direction.
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Working Paper Series
The Price of a Vote: Evidence from France, 1993-2014
Feb 2018
Money in politics is not a strictly American phenomenon. In France, despite strong campaign finance laws, campaign donations have a direct influence on legislative and municipal election results.
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Working Paper Series
Persistent Effects of Autonomous Demand Expansions
Feb 2018
The prevailing wisdom that aggregate demand ‘shocks’ determine short-run cyclical fluctuations around a supply-determined equilibrium growth rate and an associated equilibrium unemployment rate (or NAIRU) has been called into question by various streams of literature in the last decades. Specifically, a recently revived literature on hysteresis finds significant persistence in the effects of recessions and negative aggregate demand shocks (Blanchard et al. 2015; Martin et al. 2015).
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Working Paper Series
Lending a Hand: How Small Black Businesses Supported the Civil Rights Movement
Jan 2018
A large literature has detailed the seminal roles played in the Civil Rights Movement by activists, new political organizations, churches, and philanthropies. But black-owned businesses also provided a behind-the-scenes foundation for the movement’s success.
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Working Paper Series
Industrial Structure and Party Competition in an Age of Hunger Games: Donald Trump and the 2016 Presidential Election
Jan 2018
The U.S. presidential election of 2016 featured frontal challenges to the political establishments of both parties and perhaps the most shocking election upset in American history.
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Conference paper
$MeToo: The Economic Cost of Sexual Harassment
Jan 2018
To get justice, targets must show measurable harm: economists can help.
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Conference paper
Veiling
Dec 2017
Veiling among Muslim women is modeled as a commitment mechanism that limits temptation to deviate from religious norms of behavior.
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Commentary
Some Thoughts on Secular Stagnation, Loanable Funds and the ZLB
Dec 2017
I have read the various conference papers and am struck by the fact that many use the (omnipresent New-Keynesian) model of an aggregate loanable funds market to diagnose secular stagnation and investigate possible remedies.
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Conference paper
Transition to Slower Population Growth: Demography and its Effect on Real Interest Rates
Dec 2017
The past 30 years has witnessed a worldwide decrease in real interest rates. We demonstrate that a large part of the fall in interest rates can be explained by changes in demography, which are as the result of a sudden fall in fertility rates across all of the advanced economies in the early 1970s.