21 April 2017
Julie Anne Cronin
, Don Fullerton
, and Steven E. Sexton
find that a carbon tax with a rebate is progressive under a variety of rebate schemes. The average family in the poorest decile gets a net tax cut of about 1 percent of consumption — but 44 percent of them get a net tax increase.
20 April 2017
Michael L. Anderson
, Justin Gallagher
, and Elizabeth Ramirez Ritchie
find that healthy public school meals can improve cognitive function among students. In a study of California public schools over five years, they find that students at schools that contract with healthy lunch vendors score higher on state achievement tests, with larger gains for students eligible for reduced price or free school lunches.
19 April 2017
Disruption in credit supply was a key contributor to declining employment during the Great Depression, according to research by Efraim Benmelech
, Carola Frydman
, and Dimitris Papanikolaou
. They find that the lack of access to credit accounted for between 10 and 33 percent of the aggregate decline in employment of large firms between 1928 and 1933.
18 April 2017
In contrast to conventional wisdom that early industrialization involved declining demand for skills, a study of regional variations in the adoption of steam engines across France, by Raphaël Franck
and Oded Galor
, finds that the Industrial Revolution was conducive to human capital formation, generating wide-ranging gains in literacy rates and educational attainment.
17 April 2017
The mortgage market share of shadow banks – non-bank lenders that are not funded by deposits – has nearly tripled since 2007. Research by Greg Buchak
, Gregor Matvos
, Tomasz Piskorski
, and Amit Seru
finds that shadow banks were significantly more likely to enter markets where traditional banks faced more regulatory constraints. “Fintech” shadow banks, which rely more on technology and data analysis than their traditional counterparts, accounted for almost a third of shadow bank loan originations by 2015. The authors conclude that increasing regulatory burden faced by traditional banks can account for about 55 percent of recent shadow bank growth; emerging financial technology can account for another 35 percent.