Dynamic household bargaining models are growing in popularity but are computationally demanding to solve and estimate. We propose a modification to the endogenous grid method (EGM) that allows this class of models to reap the benefits of the EGM. The method, which we refer to as interpolated EGM...

We study economic narratives-causal accounts of observed events-in a high-stakes real-world context: long-term unemployment. We use open-ended questions to measure narratives about long-term unemployment in samples of Danish unemployed job seekers, firm managers, households from the general...

Expectations are central to models of economic and financial decision-making. Yet in practice, individuals are often inattentive and, when asked, report fragile, context-dependent expectations that are only weakly linked to decisions. This raises the question to what extent they hold such...

Using Danish administrative data linked to two independent, validated postpartum depression screenings, we study how postpartum mental health shocks shape women's labor market trajectories. Event-study estimates show no pre-birth differences in trends between depressed and non-depressed mothers,...

In a field experiment with 9,000 Danish job seekers, we study how unemployed workers' wage expectations affect job search and re-employment. In our survey, we generate exogenous variation in respondents' wage expectations by informing a random half of them about re-employment wages of comparable...

Using surveys with Danish students transitioning to secondary education, we study mental models of how gender and parental education shape academic performance. Students hold heterogeneous beliefs about performance gaps by gender and parental background, which appear to be shaped by...

This study examines the impact of increased access to psychotherapy on secondary education completion among Danish youth aged 18-21. We use Danish administrative data and two complementary identification strategies that are both rooted in quasi-exogenous variation in barriers to mental health...

We investigate selection into a voluntary unemployment insurance (UI) scheme by exploiting variation in enrollment driven by an early retirement program embedded within the UI system. Using Danish administrative data and an event study design, we identify negative selection among UI enrollees...

We develop a general sorting model that incorporates both self-selection by applicants, who assess their own skills, and evaluation by admissions agents, who rely on noisy signals of skills. Building upon the theoretical framework of the Roy model, our analysis examines how the presence of noise...

We study the transmission of rising interest rates to consumption using granular customer data from a major bank in Denmark. We show that households with adjustable-rate mortgages gradually reduced spending and increased deposits as market rates soared in 2022 but made no further spending cuts...