I slightly modify the model of Monte et al. (2015) to estimate how workers in Mexican municipalities choose the location of their workplace based on the income gains from commuting to another municipality. Estimates are in line with the intuition: Static estimates for both 2010 and 2015 suggest...

This paper studies how refugee inflows affect receiving communities using highly disaggregated German administrative data at a 1km × 1km resolution. We develop a novel spatial equilibrium model that features two geographic levels, small neighborhoods and more aggregated local labor markets...

This paper shows that price rigidity evolves in an economy populated by imperfectly rational agents who experiment with alternative rules of thumb. In the model, firms must set their prices in face of aggregate demand shocks. Their payoff depends on the level of aggregate demand, as well as on...

Recent innovation literature has documented the benefits of cross-pollination of ideas across a wide set of industries and technology fields in an economy. Industrial and trade policies, by contrast, tend to favor economic specialization through the promotion of selected sectors. In this paper...

This paper provides new estimates of local job multipliers, the ratio of total jobs generated to some initial number of jobs created from a demand shock. Multipliers greatly affect benefits versus costs of local job-creation policies. These new estimates rely on improved methodology and data....