School of Economics

Past Seminars

Dr. Haltiwagner’s will present Misallocation Measures: The Distortion that Ate the Residual

An estimable model of income redistribution in a federation: Musgrave Meets Oates

Abstract
We develop a theory of cross-border income shifting in response to personal taxation, and examine its implications for the revenue potential and excess burden of personal taxes at the subnational level. We estimate the elasticity of tax avoidance and of cross-border tax base shifting using data on top income shares for Canadian provinces, finding that interprovincial shifting accounts for about two-thirds of total tax avoidance. We then propose a model demonstrating that a properly-chosen federal tax rate can offset the horizontal fiscal externality, allowing decentralized subnational tax rates to replicate the national welfare optimum.

Dr. Pilossoph will present “Assortative Matching and Household Income Inequality: A Structural Approach”

Dr. Xu will present “Notching R&D Investment with Corporate Income Tax in China”

Dr. Xu’s most recent work has been published in the Rand Journal of Economics, the World Bank Economic Review, the American Economic Review and the Review of Economic Dynamics. He is currently working on projects that explore innovation, productivity, exporting and industry dynamics, with a special focus on East Asian emerging economies such as China, Taiwan, and Korea.n.

Dr. Mas will present “Sources of the Displaced Workers’ Long -Term Earnings Losses”

Abstract

We estimate the earnings losses of a cohort of workers displaced during the Great Recession and decompose those long-term losses into components attributable to fewer work hours and to reduced hourly wage rates. We also examine the extent to which the reduced earnings, work hours, and wages of these displaced workers can be attributed to factors specific to pre- and post-displacement employers; that is, to lost employer-specific rents. The analysis is based on employer-employee linked panel data from Washington State assembled from 2002–2014 administrative wage and unemployment insurance records.

Three main findings emerge from the empirical work. First, five years after job loss, the earnings of these displaced workers were 17 percent less than those of comparison groups of nondisplaced workers. Second, earnings losses within a year of displacement can be explained almost entirely by lost work hours; however, five years after displacement, the relative earnings deficit of displaced workers can be attributed roughly one-half to reduced hourly wages and one half to reduced work hours. Third, time-invariant characteristics of the employers who rehire displaced workers appear to account for about one-fifth of the long-term earnings losses and nearly of the lower long-term hourly wages of these workers.

Dr. Gete will present Mortgage Finance, Liquidity Traps
Abstract
We quantify that the recourse mortgages dominant in the European housing systems can account for 38% of the post Great-Recession gap in per capita consumption between the USA and Europe. The result is mostly accounted for by general equilibrium effects through lower housing prices and weak demand for labor. We show that, even with foreclosures costs, in a liquidity trap mortgage regulations that allow for default are welfare dominant to regulations that discourage it. In terms of methodology, we show that models of liquidity traps with long-term debt, endogenous housing prices and default significantly amplify the impact and persistence of financial shocks.

Household Income in Tax Data: Using Addresses to Move from Tax Unit to Household Income Distributions.

Abstract Tax return data are increasingly the standard for tracking income statistics in the United States. However, these data have traditionally been limited by their inability to capture non-filers and to identify members of separate tax units living in the same household. We overcome these obstacles and create household records directly in the tax data using mailing address information included on tax forms. We then present the first set of tax-based household income and inequality measures for the entire income distribution. When comparing household income inequality results in the tax data to those using the March CPS, we confirm previous findings that the March CPS understates the inequality of household income. However, we also find that the previous approach of using tax units in the IRS data to proxy for households leads to an overstatement of household income inequality. Finally, using households in the IRS tax records, we illustrate how focusing on tax units rather than households alters the observed distribution of tax programs such as the Earned Income Tax Credit

Dr. Tymofiy’s research on game theory, contract theory, and institutional design has been published in major international academic journals like the Review of Economic Studies and the Journal of Economic Theory.

Research includes behavioral economics and household finance, with a focus on low-income households.

Research interests in the intersection of finance and macroeconomics, with an emphasis on normative questions. He has recently studied the optimal determination of transaction taxes, the optimal design of bankruptcy policies, the effects of bank size on financial fragility, the ideal design of joint liability arrangements among sovereigns and the welfare losses associated with fire-sale externalities.

His research lies at the intersection of macroeconomics, macro-labor, international macro, and monetary economics. His work focuses on the study of labor market dynamics, financial frictions, and business cycles in developing and emerging economies, the importance of sectoral heterogeneity for the behavior of short-run economic activity, and the role of macro policy in mitigating the impact of adverse shocks to the economy.

Professor Caliendo’s research is focused on understanding and quantifying the economic effects of international trade and migration

Session 1: 10:00am –Noon
Ryan Michaels (FRB Philadelphia) “Vacancy Chains”,

Research in Labor Economics, Economics of Education, Health Economics, Econometrics