With reasonable commitment on household wealth, optimizing policymakers follow a timeless perspective with zero taxation of capital and uniform taxation of consumption, from Robert J. Barro and Varadarajan V. Chari nber.org/papers/w32306

Using new micro evidence to develop a HANK model with persistent heterogeneity in cognitive skills & overconfidence, greatly improving fit to macro data with fiscal policy implications, from Oliver Pfäuti, @fseyrich, and Jonathan Zinman nber.org/papers/w32305

Endogeneity of amenities play a crucial role in determining the welfare distribution of a city’s residents, from Milena Almagro and @tomasdom nber.org/papers/w32304

Investigating the determinants of emerging markets performance during five US Federal Reserve monetary tightening and easing cycles during 2004–2023, from Joshua Aizenman, Donghyun Park, Irfan A. Qureshi, Gazi Salah Uddin, and Jamel Saadaoui nber.org/papers/w32303

A one-dollar increase in electronic nicotine delivery systems taxes is associated with a 1–2 percentage point decline in teen marijuana use, from Dave, Yang Liang, Catherine Maclean (@jcmecon.bsky.social), Muratori, and CHEPS nber.org/papers/w32302

While behavioral overreaction is thought to amplify market volatility; this study explains why it can be a force for stability, and how it has been in post-millennial stock markets, from Francesco Bianchi, Sydney Ludvigson, and Sai Ma nber.org/papers/w32301

Featured in the latest Digest: 'Increased Immigration Enforcement and the Public Safety of Hispanics' nber.org/digest/202404/…

Shedding new light on why people dislike inflation, leveraging two new surveys in the US, from Stefanie Stantcheva nber.org/papers/w32300

Amazon has changed its search rankings of its own products as the European Union’s Digital Markets Act DMA takes effect, from Joel Waldfogel nber.org/papers/w32299

The welfare costs of idiosyncratic earnings risk are two-to-four times higher when the non-Gaussian features of earnings fluctuations are taken into account, from Fatih Guvenen, Serdar Ozkan, and Rocio Maderah ttps://www.nber.org/papers/w32298

Policies to alleviate material hardship, critical for improving people’s wellbeing, aren't by themselves sufficient to also alleviate the social burden of crime, from Jens Ludwig and Kevin Schnepel nber.org/papers/w32297

Many public universities use admission cutoffs to ration offers. Admitting the marginal students around these cutoffs in Texas pays off for the students and taxpayers, from Jack Mountjoy nber.org/papers/w32296

Testing economic theories of belief-based utility in the context of video-game engagement using data from League of Legends, from Ashvin Gandhi, Paola Giuliano, Eric Guan, Quinn Keefer, Chase McDonald, Michaela Pagel, and Joshua Tasoff nber.org/papers/w32295

LinkedIn data can be used to measure the racial, ethnic, and gender mix of companies' workforces, and differences in mass layoffs and promotions, from Alexander Berry, Elizabeth M. Maloney, and David Neumark nber.org/papers/w32294

Capital regulation could address run risk by encouraging capital raising, but its effectiveness depends on the regulatory capital definitions and can be eroded by the use of held-to-maturity accounting, from Granja, Erica Xuewei Jiang, Matvos, Piskorski, and Seru nber.org/papers/w32293

Licensed workers are less likely to choose to change careers but are more likely to reduce work hours in transitioning out of the workforce, from Yun taek Oh and Morris M. Kleiner nber.org/papers/w32292

A model of self-fulfilling default cycles with demand externality a la Dixit-Stiglitz explains the recurrent clustered defaults observed in the data, from Jess Benhabib, Feng Dong, Pengfei Wang, and Zhenyang Xu nber.org/papers/w32291

Cooperative and competitive reward structures in teams with interdependent preferences, from Debraj Ray and Marek Weretka nber.org/papers/w32290

Evidence of intensified discrimination by landlords in the rental housing market during the eviction moratoria instituted during the COVID-19 pandemic, from Alina Arefeva, Kay Jowers, Qihui Hu, and Christopher Timmins nber.org/papers/w32289

Across 100 countries worldwide, perceived expropriation risk is associated with lower research and development, patenting, scientific publications, and economic complexity in production, from Benavente, Bravo-Ortega, Egaña-delSol, and Hall nber.org/papers/w32288