How Do Low-Income Enrollees in the Affordable Care Act Marketplaces Respond to Cost-Sharing? — by Kurt J. Lavetti, Thomas DeLeire, Nicolas R. Ziebarth

The ACA requires insurers to provide cost-sharing reductions (CSRs) to low-income consumers on the marketplaces. We link 2013-2015 All-Payer Claims Data to 2004-2013 administrative hospital discharge data from Utah and exploit policy-driven differences in the value of CSRs that are solely determined by income. We find that enrollees with lower cost sharing have higher levels … Read moreHow Do Low-Income Enrollees in the Affordable Care Act Marketplaces Respond to Cost-Sharing? — by Kurt J. Lavetti, Thomas DeLeire, Nicolas R. Ziebarth

Benchmark Interest Rates When the Government is Risky — by Patrick Augustin, Mikhail Chernov, Lukas Schmid, Dongho Song

Since the Global Financial Crisis, rates on interest rate swaps have fallen below maturity matched U.S. Treasury rates across different maturities. Swap rates represent future uncollateralized borrowing between banks. Treasuries should be expensive and produce yields that are lower than those of maturity matched swap rates, as they are deemed to have superior liquidity and … Read moreBenchmark Interest Rates When the Government is Risky — by Patrick Augustin, Mikhail Chernov, Lukas Schmid, Dongho Song

Productivity and Wages: Common Factors and Idiosyncrasies Across Countries and Industries — by Edward P. Lazear

Average wage growth is closely related to aggregate productivity growth across countries and within countries over time. The commonality of patterns across OECD countries suggests that common factors are at work. Are productivity-based explanations of wage changes consistent with increasing variance in wages as well as increases in mean wages as suggested by skill-biased technological … Read moreProductivity and Wages: Common Factors and Idiosyncrasies Across Countries and Industries — by Edward P. Lazear

MoNK: Mortgages in a New-Keynesian Model — by Carlos Garriga, Finn E. Kydland, Roman Šustek

We propose a tractable framework for monetary policy analysis in which both short- and long-term debt affect equilibrium outcomes. This objective is motivated by observations from two literatures suggesting that monetary policy contains a dimension affecting expected future interest rates and thus the costs of long-term financing. In New-Keynesian models, however, long-term loans are redundant … Read moreMoNK: Mortgages in a New-Keynesian Model — by Carlos Garriga, Finn E. Kydland, Roman Šustek

Global v. Local Methods in the Analysis of Open-Economy Models with Incomplete Markets — by Oliver de Groot, Ceyhun Bora Durdu, Enrique G. Mendoza

Global and local methods are widely used in international macroeconomics to analyze incomplete-markets models. We study solutions for an endowment economy, an RBC model and a Sudden Stops model with an occasionally binding credit constraint. First-order, second-order, risky steady state (RSS), and DynareOBC solutions are compared v. fixed-point-iteration global solutions in the time and frequency … Read moreGlobal v. Local Methods in the Analysis of Open-Economy Models with Incomplete Markets — by Oliver de Groot, Ceyhun Bora Durdu, Enrique G. Mendoza

Government Expenditure on the Public Education System — by Chao Fu, Shoya Ishimaru, John Kennan

We investigate equilibrium impacts of federal policies such as free-college proposals, taking into account that human capital production is cumulative and that state governments have resource constraints. In the model, a state government cares about household welfare and aggregate educational attainment. Realizing that household choices vary with its decisions, the government chooses income tax rates, … Read moreGovernment Expenditure on the Public Education System — by Chao Fu, Shoya Ishimaru, John Kennan

Demand Analysis with Many Prices — by Victor Chernozhukov, Jerry A. Hausman, Whitney K. Newey

From its inception, demand estimation has faced the problem of “many prices.” This paper provides estimators of average demand and associated bounds on exact consumer surplus when there are many prices in cross-section or panel data. For cross-section data we provide a debiased machine learner of consumer surplus bounds that allows for general heterogeneity and … Read moreDemand Analysis with Many Prices — by Victor Chernozhukov, Jerry A. Hausman, Whitney K. Newey

Don’t Take Their Word For It: The Misclassification of Bond Mutual Funds — by Huaizhi Chen, Lauren Cohen, Umit Gurun

We provide evidence that mutual fund managers misclassify their holdings, and that these misclassifications have a real and significant impact on investor capital flows. In particular, we provide the first systematic study of bond funds’ reported asset profiles to Morningstar against their actual portfolios. Many funds report more investment grade assets than are actually held … Read moreDon’t Take Their Word For It: The Misclassification of Bond Mutual Funds — by Huaizhi Chen, Lauren Cohen, Umit Gurun

Assessing External Validity — by Hao Bo, Sebastian Galiani

In designing any causal study, steps must be taken to address both internal and external threats to its validity. Researchers tend to focus primarily on dealing with threats to internal validity. However, once they have conducted an internally valid analysis, that analysis yields an established set of findings for the specific case in question. As … Read moreAssessing External Validity — by Hao Bo, Sebastian Galiani

Effort: The Unrecognized Contributor to US Income Inequality — by J. Rodrigo Fuentes, Edward E. Leamer

This paper provides theory and evidence that worker effort has played an important role in the increase in income inequality in the United States between 1980 and 2016. The theory suggests that a worker needs to exert effort enough to pay the rental value of the physical and human capital, thus high effort and high … Read moreEffort: The Unrecognized Contributor to US Income Inequality — by J. Rodrigo Fuentes, Edward E. Leamer

The Effects of Financial Aid Grant Offers on Postsecondary Educational Outcomes: New Experimental Evidence from the Fund for Wisconsin Scholars — by Deven E. Carlson, Felix Elwert, Nicholas Hillman, Alex Schmidt, Barbara L. Wolfe

In this pre-registered study, we analyze the effects of need-based financial aid grant offers on the educational outcomes of low-income college students based on a large-scale randomized experiment (n=48,804). We find evidence that the grant offers increase two-year persistence by 1.7 percentage points among four-year college students. The estimated effect on six-year bachelor’s degree completion … Read moreThe Effects of Financial Aid Grant Offers on Postsecondary Educational Outcomes: New Experimental Evidence from the Fund for Wisconsin Scholars — by Deven E. Carlson, Felix Elwert, Nicholas Hillman, Alex Schmidt, Barbara L. Wolfe

Quantifying Heterogeneous Returns to Genetic Selection: Evidence from Wisconsin Dairies — by Jared P. Hutchins, Brent Hueth, Guilherme Rosa

Estimates of productivity growth in the dairy sector attribute as much as half of observed growth to genetic improvement. Unobserved match quality is an important determinate of genetic selection by dairy farmers that confounds attribution to genetic improvement alone. Using data from a large sample of Wisconsin dairy farms, and national-level data on sire rankings, … Read moreQuantifying Heterogeneous Returns to Genetic Selection: Evidence from Wisconsin Dairies — by Jared P. Hutchins, Brent Hueth, Guilherme Rosa

Southern Colorado Man Charged with Federal Hate Crime for Plotting to Blow Up Synagogue

Assistant Attorney General Eric Dreiband for the Civil Rights Division and Assistant Attorney General John C. Demers for the National Security Division, U.S. Attorney Jason R. Dunn for the District of Colorado, and Special Agent in Charge Dean Phillips for the FBI Denver Division announced today that a Colorado man has been charged with a … Read moreSouthern Colorado Man Charged with Federal Hate Crime for Plotting to Blow Up Synagogue

California Woman Sentenced to Prison for Aiding and Abetting Production of Child Pornography

A Madera County, California, woman was sentenced today to 200 months in prison, followed by 180 months of supervised release, for aiding and abetting the production of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott of the Eastern District of California. Please … Read moreCalifornia Woman Sentenced to Prison for Aiding and Abetting Production of Child Pornography

Justice Department Resolves Disability Discrimination Lawsuit Against the Housing Authority of the City of Bridgeport, Connecticut

The Justice Department announced today that it has reached a settlement with the Housing Authority of the City of Bridgeport, Connecticut (HACB), doing business as Park City Communities, to resolve allegations that the housing authority discriminated against persons with disabilities in violation of Section 504 of the Rehabilitation Act, Title II of the Americans with … Read moreJustice Department Resolves Disability Discrimination Lawsuit Against the Housing Authority of the City of Bridgeport, Connecticut

Telcos: Govt mulls repayment of AGR dues over 20yrs

The government panel may consider a reduction in the total incidence of taxation to help the troubled sector and separately reach out to the regulator to consider some floor on tariffs to help with viability. The panel, which met for the first time last week, discussed various options, including providing relief from taxes. Please follow … Read moreTelcos: Govt mulls repayment of AGR dues over 20yrs

McDonald’s ousts CEO over relationship with worker

McDonald’s Corp dismissed chief executive Steve Easterbrook over a recent consensual relationship with an employee, which the board determined violated company policy. Chris Kempczinski, 51, most recently president of McDonald’s USA, was named the company’s new CEO, effective immediately. “This was a mistake,” Easterbrook acknowledged in an email to employees. Please follow and like us:

Flash Update No. 13

(SGS Subscription required) • Explosive Growth in Federal Debt, Against Headline GDP, Is Out of Control, Threatening Domestic Financial Stability and the Survival of the Republic • Having Triggered the Still-Deepening U.S. Recession, the FOMC Declared That Sustainable, Moderate U.S. Economic Growth Is in Place, Hinting That No Further Easing Was Needed — Nonsense! • … Read moreFlash Update No. 13

Retail Dies A Little More

Australian retail turnover rose 0.2 per cent in September 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures. In line with our expectations, and continuing to show the pressure on households, and the limited impact of the tax cuts, and even lower interest rates. This follows a 0.4 per … Read moreRetail Dies A Little More

Develop Future Leaders with Rotational Programs

​Rotational programs—assigning employees to short work assignments abroad—can be an innovative way for an organization to retain future leaders.The programs do have immigration compliance and tax risks, however, that employers should recognize, said Jason Rogers, vice president and senior global immigration counsel for Newland Chase in Dallas, in a session Nov. 4 at the Society … Read moreDevelop Future Leaders with Rotational Programs

Trump’s Skills-Based Immigration Plan on Track for 2020

​The U.S. immigration system is first and foremost for the benefit of the United States, said Kenneth Cuccinelli II, acting director of U.S. Citizenship and Immigration Services (USCIS), seeking to define the Trump administration’s approach to immigration.Speaking at SHRM’s Global Mobility and Immigration Symposium in Washington, D.C., Cuccinelli said that President Donald Trump’s plan to … Read moreTrump’s Skills-Based Immigration Plan on Track for 2020

Westpac 2019 Profit Down 16%

What ever way you look at the 2019 results, out today, Westpac had a bad year in a low growth, low interest rate, high customer remediation environment. Their statutory net profit was $6,784 million, down 16%, while cash earnings were $6,849 million, down 15%. In FY19 and FY18, the Group raised provisions called “notable items” … Read moreWestpac 2019 Profit Down 16%

Sentence First, Crime Later?, by Ron Paul

Attorney General William Barr recently sent a memo to law enforcement officials announcing a new federal initiative that would use techniques and tools developed in the war on terror, such as mass surveillance, to identify potential mass shooters. Those so identified would be targets of early interventions, which would include the disregarding of Second Amendment… … Read moreSentence First, Crime Later?, by Ron Paul

India won’t join RCEP till concerns addressed

Ahead of the final lap on the RCEP pact, India has shared concerns – ranging from the base year for tariff reduction to protection against Chinese imports and opening up services sector by the other 15 countries — that haven’t been addressed yet. Indian officials have made that it wants the country’s interests to be … Read moreIndia won’t join RCEP till concerns addressed

Westpac successfully completes RBNZ remediation process

Westpac New Zealand Limited (Westpac) has retained its accreditation as an internal models bank following completion of an extensive remediation process required by the Reserve Bank. In 2017 the Reserve Bank required Westpac to undertake an independent review of its compliance with internal models obligations. The review found that Westpac was using a number of … Read moreWestpac successfully completes RBNZ remediation process

Will ask my team to look at bidding for Air India: Tata Group chief

The Tata Group may consider bidding for Air India, an airline it once owned, whenever the govt finalises its sale. “Ideally, it is a Vistara decision. It is not a Tata Sons decision. I will ask the team to evaluate it,” said the Tata group chief N Chandrasekaran. Air India would augment Vistara’s domestic market … Read moreWill ask my team to look at bidding for Air India: Tata Group chief

‘Maharashtra has always been difficult to manage … With four major political parties forming an alliance is cumbersome’

For the second time in succession, a fractured mandate in Maharashtra has complicated government formation. Prithviraj Chavan, who was chief minister in the last Congress-NCP government, explains the state’s intricacies to Sugandha Indulkar: Why is Maharashtra struggling with… Please follow and like us: