Contemporary Economic Policy最新文献

We examine decisions made by village officials in a public goods game and their impact on villagers' attitudes toward a resettlement project in seven rural villages in China. The data comes from two sources: (i) a laboratory experiment with village officials, and (ii) a survey of villagers. Villages whose officials exhibited more cooperative behavior in the laboratory reported higher support levels from the villagers. We find that teams with higher average contribution levels in the PGG game relayed the resettlement news to their villagers earlier than other teams and also possess greater altruistic preferences.

Several states require employers who do not offer retirement benefits to automatically enroll their employees in individual retirement accounts (IRAs). We quantify the welfare effects of this program for individuals who follow a rule-of-thumb to make savings decisions. We find workers who save more than 3% would be willing to give up 0%–1.4% of lifetime consumption to avoid an IRA. We also consider a fully rational model with credit frictions, stochastic income and pre-retirement withdrawals, and costly IRA opt-outs. We find that being enrolled in an IRA is most likely to benefit workers who do not borrow during the life-cycle.

When people immigrate to the United States from countries with less economic freedom, they do not dampen economic freedom in their destination states. We use the Economic Freedom of North America report to rate the economic freedom of US states, and we group immigrants by how far below the United States their origin countries score in the Economic Freedom of the World report. Our major findings hold true even when states receive immigrants from countries with far less economic freedom. Most relationships between immigration and the US states' economic freedom scores are neither statistically nor economically significant.

The Xinjiang Uyghur Autonomous Region (XUAR) has recently experienced a series of policies seeking economic development and intensive methods of social coercion. A unique leader, Chen Quanguo, brought these changes to the XUAR in 2016. This paper seeks to examine the effects of Chen's regime. We specifically examine three outcomes: GDP per capita, arrest rates, and spending on public security. Using the synthetic control method, we find that Chen's regime had no significant effect on the development. However, his policies led to much higher rates of arrest and larger spending on public security.

This paper examines the potential persistent effects (scarring) of the COVID-19 pandemic on the economy and the channels through which they may occur. Our findings from a broad set of historical recessions confirm that recessions are associated with persistent output losses and that the greatest scarring has occurred following financial crises. The amount of scarring following pandemic and epidemic recessions in the sample is in between that of typical recessions and financial crises. Results on the channels show that the productivity channel is important, as all types of recessions have been followed by persistent losses to total factor productivity.

Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP) cases increased by 3.3 million between March and June 2020, their largest quarterly increase ever. During the pandemic, many states adopted a wide set of policies and procedures to facilitate program enrollment, retention, and eligibility. I track these policies and create a pandemic policy index measuring state generosity. States that adopted more generous policies experienced larger TANF and SNAP caseload growth, especially eligibility policies such as exempting TANF work requirements or SNAP P-EBT availability. Analyzing the caseload relationship to labor markets, caseloads were less responsive to unemployment rate changes during the pandemic relative to the pre-pandemic period.

We study the COVID-19 pandemic's effect on government and market attitudes using within-subject comparisons of survey responses elicited before and after the onset of the pandemic. We find that participants develop significantly less favorable opinions toward government and markets; and that participants increase support for bigger government significantly and for redistribution, in general, marginally significantly. There is no evidence this leads to an increase in support for specific redistributive policies, nor for government to play a larger role in specific functions. Our results echo the stubbornness of American preferences for redistribution and suggest the presence of a principle-implementation gap.

The combination of drugged and drunk driving is an important policy topic as some states and countries have liberalized prohibitions on substance use to varying degrees. In this study, we analyze the effect of legal access to alcohol on suspected drug impaired accidents. We find that accidents with suspected drug impairment significantly increase when a driver gains legal access to alcohol at age 21. Our findings suggest that even if alcohol and drug consumption are substitutes, as much of the literature suggests, potential interactive effects may offset the reduction in decreased alcohol consumption from drugs.

Paid family leave (PFL) aims to help working parents balance their careers and family responsibilities while also improving the well-being of infants. Using linked U.S. birth and infant death data with a difference-in-differences framework, I find that a 6-week PFL in California reduced the post-neonatal mortality rate by 0.135- that is, it saved approximately 339 infant lives. There were fewer deaths from health-related causes and larger effects for infants with married mothers and for infant boys. Additional checks and placebo examinations indicate that the observed effect is not due to contemporaneous shocks but rather is causal.

We study the links between fiscal stimulus packages during times of crisis and households' liabilities. We do so by using household-level data on income and liabilities from the Consumer Expenditure Survey, and estimating an empirical model along those in the literature on the consumption effects of these packages. We find that receiving a check from the government tends to translate into a reduction in outstanding liabilities for American households. This effect is robust to controlling for income levels and household size. The effects are driven by households whose income is below the median and by those who remain employed during the crisis.