2 December 2016
In fighting a financial crisis, opacity (keeping the names of banks borrowing at emergency lending facilities secret) and stigma (the cost of having a bank’s name revealed) are desirable to restore confidence, according to research by Gary Gorton
and Guillermo Ordoñez
. Opacity creates an information externality that prevents runs even on banks not participating in lending facilities. Stigma keeps banks from revealing their participation and helps to sustain opacity.
1 December 2016
Cumulative marginal tax rates across non-disabled, non-elderly, low-income families vary enormously, a study by Gizem Kosar
and Robert A. Moffitt
shows. For the large majority of families that participate in fewer than two welfare programs, MTRs are modest in magnitude, while families participating in two or more programs usually face considerably higher MTRs at higher earnings ranges.
30 November 2016
Examining the performance of cashiers in a French grocery store chain, Dylan Glover
, Amanda Pallais
, and William Pariente
find that manager bias negatively affects minority job performance. Minority cashiers scheduled to work with biased managers are absent more often, spend less time at work, scan items more slowly, and take more time between customers. When working with unbiased managers, minorities perform significantly better than do majority workers.
29 November 2016
Technological progress builds upon itself, with the expansion of invention in one domain propelling future work in linked fields, according to research by Daron Acemoglu
, Ufuk Akcigit
, and William Kerr
28 November 2016
and Wojciech Kopczuk
find that business income in the United States is increasingly taxed through personal income taxes rather than a combination of corporate and personal taxes. This shift must be recognized when analyzing data on the income distribution that are drawn from tax returns.