Do tax cuts work better when targeted to high or low earners? New HANK model evidence: cuts for the bottom 90% generate larger output effects than for the top 10%, but incentive effects matter for both. Welfare gains from progressive cuts are much larger.

How Does Progressivity Affect the Tax Cut Multiplier? How does the targeting of personal income tax cuts affect the output multiplier? This paper provides quantitative evidence using a heterogeneous-agent New-Keynesian model calibrated to match US distr....

The International Economic Review has just published a new exciting paper by Christian Gillitzer on How Does Progressivity Affect the Tax Cut Multiplier? It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

Place-based land policy in China reduced regional productivity gaps—but by constraining productive areas rather than lifting laggards. It lowered national output and worsened outcomes for workers in poor regions who lost migration opportunities. Helping places ≠ helping people.

Place‐Based Land Policy and Spatial Misallocation: Theory and Evidence From China We investigate a land policy in China that allocated more urban land quotas to underdeveloped regions to reduce regional gaps. Empirically, the policy decreased productivity in eastern areas relative...

International Economic Review has just published new exciting paper by Min Fang, Libin Han, Zibin Huang, Ming Lu and Li Zhang on Place-Based Land Policy and Spatial Misallocation: Theory and Evidence From China. Is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

What is behind the "China Shock"? This paper uses firm-level data to show how production & exports shifted across industries in China. It also explains the rise and recent decline of China's trade openness.

Accounting for the Evolution of China's Production and Trade Patterns We study the evolution of China's production and trade patterns during its integration into the global economy. Using firm-level microdata, we document how production and exports shifted across indus...

The International Economic Review has just published a new exciting paper by Hanwei Huang, Jiandong Ju and Vivian Yue on Accounting for the Evolution of China's Production and Trade Patterns. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

Using twin data from China and Sweden, we show parents invest and bequeath equally but inter vivos transfers differ: Chinese parents reinforce income gaps, while Swedish parents split wealth evenly. Differences in parental education may help explain these cross-country patterns.

Do Parents Propagate Inequality Among Children? Evidence From Chinese and Swedish Twins Economists have long studied how parental behavior shapes within-family inequality, yet empirical findings remain mixed. Using twins data from China and Sweden, we examine the predominant mechanisms ...

International Economic Review has just published new exciting paper by Aiday Sikhova, Sven Oskarsson and Rafael Ahlskog on Do Parents Propagate Inequality Among Children? Evidence From Chinese and Swedish Twins. It is available through @WileyEconomics here onlinelibrary.wiley.com/doi/10.1111/...

We connect Dynamic Mode Decomposition to VARs and state-space models. DMD efficiently estimates low-rank VAR coefficients via SVD. Applied to a 100-household DSGE economy, it recovers latent aggregate dynamics and the sharing rule from micro panels.

Dynamic Mode Decompositions and Vector Autoregressions We establish connections between dynamic mode decompositions (DMDs), vector autoregressions, and linear state-space models, showing that DMD provides a computationally efficient, SVD-based estimator ...

The International Economic Review has just published a new exciting paper by Thomas Sargent, Yatheesan Selvakumar and Ziyue Yang on Dynamic Mode Decompositions and Vector Autoregressions. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

What are the extent/welfare costs of college financial aid application frictions? While many US HS grads (11%) don’t apply for aid due to applying difficulty/mistaken beliefs/unawareness, eliminating these frictions yields low gains b/c few of the affected would end up using aid.

College Financial Aid Application Frictions We document that 11 percent of recent U.S. high school graduates did not apply for federal student aid due to difficulty in applying, mistaken beliefs, or lack of awareness. Not applying due to such ...

The International Economic Review has just published a new exciting paper by Emily Moschini and Gajendran Raveendranathan on College Financial Aid Application Frictions. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

The authors document how childcare costs and the location of extended family influence the labor supply and mobility of U.S. women using empirical analyses and a dynamic model. They find that childcare subsidies increase both the earnings and mobility of U.S. women considerably.

To Grandmother's House We Go: Informal Childcare and Female Labor Mobility We document how childcare costs and the location of extended family influence the labor supply and mobility of US women. Women return to their home locations immediately before fertility events, sugg...

The International Economic Review has just published a new exciting paper by Garrett Anstreicher and Joanna Venator on To Grandmother's House We Go: Informal Childcare and Female Labor Mobility. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

Winners quit fast and often; a visionary agent does so whenever she receives bad news. Opens opportunity for others to signal their vision by quitting too early or too late. Such mimicking behavior is costly & compensated in equilibrium by higher reputation. Leads to non-monotone reputation dynamics

Signaling Vision: Knowing When to Quit We study a signaling game where agents signal their type by choosing when to quit pursuing an uncertain project. High types observe news about project quality and quit when bad news arrives. Low type...

The International Economic Review has just published a new exciting paper by Junichiro Ishida and Wing Suen on Signaling Vision: Knowing When to Quit. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

Are inflation expectation shocks symmetric? We show they are not. Using nonlinear VARs and a DSGE model, we find that negative shocks to long-run inflation expectations cause deeper, more persistent drops in output, investment, and firm entry due to “wait-and-see” effects.

Nonlinearities With Deanchored Inflation Expectations Using a nonlinear VAR, we examine the asymmetric effects of shocks to long-run inflation expectations. Negative shocks, which temporarily lower long-run inflation expectations, have a stronger and mo...

The International Economic Review has just published a new exciting paper by Stefano Fasani, Mirela Miescu and Lorenza Rossi on Nonlinearities With Deanchored Inflation Expectations. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

To receive UI, workers must satisfy eligibility requirements. Using state-border discontinuities, we find these shape UI and labor market dynamics. A heterogeneous-agent model with history-dependent UI implies an optimal policy with high monetary and short tenure requirements.

Optimal Unemployment Insurance Requirements In the United States, workers must satisfy two requirements to receive unemployment insurance (UI): a tenure requirement of a minimum work spell and a monetary requirement of past minimum earnings. U...

The International Economic Review has just published a new exciting paper by Gustavo de Souza and André Victor Luduvice on Optimal Unemployment Insurance Requirements. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/full/10....

International Economic Review: Vol 67, No 1 Click on the title to browse this issue

The International Economic Review has just published its first issue of 2026 with many exciting papers. It is available through @WileyEconomics here: onlinelibrary.wiley.com/toc/14682354...

We show Bitcoin’s difficulty adjustment stabilizes block times only when miners’ reward elasticity <1. ASERT remains stable for any elasticity. Hash-supply competition across currencies is stabilizing. We estimate reward elasticities from halving and quantify effects.

Miners' Reward Elasticity and Stability of Competing Proof‐of‐Work Cryptocurrencies Proof-of-Work cryptocurrencies employ miners to sustain the system through algorithmic reward adjustments. We develop a stochastic model of the multicurrency mining and identify conditions for stable...

The International Economic Review has published a new exciting paper by Kohei Kawaguchi, Junpei Komiyama and Shunya Noda on Miners' Reward Elasticity and Stability of Competing Proof-of-Work Cryptocurrencies. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

We study strategic dynamics under pairwise interact and imitate (PII), a behavioral rule using minimal information and pairwise comparisons. Using weak tournament graphs, we prove a one-shot stochastic stability result and apply it to Cournot competition, status contests, etc.

Pairwise Imitation and Tournament Graphs This paper investigates strategic dynamics under the behavioral rule of pairwise interact and imitate (PII), which requires minimal information and emphasizes outperforming opponents in pairwise inte...

The International Economic Review has just published a new exciting paper by Sung-Ha Hwang, Philip R. Neary, Jonathan Newton and Ryoji Sawa on Pairwise Imitation and Tournament Graphs. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

We show that DICE-type climate–growth models feature a continuum of steady states. Delaying optimal climate policy permanently increases peak and steady-state temperatures and the SCC, driven by history dependence in cumulative CO2.

The Legacy of Policy Inaction in Climate‐Growth Models To better understand the structure and core mechanisms of a broad class of climate-growth models, we study a simplified version of the dynamic integrated model of climate and the economy (DICE) throu...

The International Economic Review has just published a new exciting paper by Thomas Steger and Timo Trimborn on The Legacy of Policy Inaction in Climate-Growth Models. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

Does flexible repayment raise moral hazard? Experiment with 645 microcredit borrowers in the Philippines: repayment is high under rigid terms but falls with flexibility; social pressure declines. Consistent with repayment being norm-driven – and norms weakening under flexibility.

Flexible Contract, Flexible Morale? Microcredit Design and Repayment Discipline Flexible repayment benefits borrowers, but practitioners fear increased moral hazard. Investigating their concerns requires disentangling repayment choices from repayment capacity, which is typically...

The International Economic Review has just published a new exciting paper by Kristina Czura, Anett John and Lisa Spantig on Flexible Contract, Flexible Morale? Microcredit Design and Repayment Discipline. It is available through @WileyEconomics here: onlinelibrary.wiley.com/doi/10.1111/...

This paper develops a search model with buy-to-let investors. The model displays increasing price-to-rent and matches the investor share and housing price increase of a housing boom. Increased rental demand induces more investors, amplifying search frictions in the sales market.