We estimate a New Keynesian model that allows endogenous transitions between a target equilibrium, with inflation fluctuating around the central bank's target and interest rates typically positive, and a low-inflation equilibrium, where the effective lower bound binds and de-anchored...

We investigate the determinants of states' policy capacity, defined as the ability of states to craft effective policies. Our model shows that the interaction between politicians' implementation decisions and bureaucrats' motivation to design effective policies can lead to the coexistence of...

We investigate the determinants of states' policy capacity, defined as the ability of states to craft effective policies. Our model shows that the interaction between politicians' implementation decisions and bureaucrats' motivation to design effective policies can lead to the coexistence of...

Using recently discovered archival data, this article studies the changes in the Soviet population and the urbanization patterns after the 1933 famine. It documents that, although most of the direct victims lived in the rural areas, the famine is associated with a persistent negative change in...