One of the dangers of high inflation is that it can cause firms and households to pay close attention to it. This internalization of inflation can lead to an accelerationist regime, making inflation harder to control. We empirically assess the relationship between attention and the level of...

One of the dangers of high inflation is that it can cause firms and households to pay close attention to it. This internalization of inflation can lead to an accelerationist regime, making inflation harder to control. We empirically assess the relationship between attention and the level of...

Dispersion in firm-level growth rates rises during recessions. To date, this has been explained through mechanisms on the firms’ side of the economy. In this paper I show that countercyclical dispersion can arise from changes on the demand side of the economy. Using retail data I find that...

The dynamic response of prices and mark-ups to economic shocks play a crucial role in macroeconomics. We explore the role that market concentration plays in determining the responsiveness to different shocks. Using a model of oligopolistic competition we show that the sensitivity of prices and...

In this paper we construct a theory of financial market runs with heterogeneous investors. We use the model to investigate how exposure to liquidity shocks and risk taking for one investor impacts the behavior of the other type of investor. We show that investors who are not directly exposed to...

Since 2010 and before the pandemic hit, the share of households refusing to participate in the Current Population Survey (CPS) tripled. We show that partially-responding households - households that respond to some but not all of the survey's eight panels - account for most of the rise....