The collapse of Freedman’s Savings Bank induced a persistent, race-specific increase in demand for banking alternatives; behavioral change driven by psychological and cultural scarring, from Vellore Arthi, Gary Richardson, and Mark Van Orden nber.org/papers/w32576

Female-owned US establishments between 1850 and 1880 were smaller and less capitalized, but hired more women and paid them more, creating a cycle between female ownership and labor market participation, from Gozen, Rick Hornbeck, Humlum, and Rotemberg nber.org/papers/w32575

Firms’ political influence distorts the allocation of stimulus spending and dampens the effectiveness of fiscal stimulus. The political process affects the impact of fiscal policy, from Joonkyu Choi, Veronika Penciakova, and Felipe Saffie nber.org/papers/w32574

Studying the impact of fiscal and monetary stimulus in an economy with mortgage debt, where inflation redistributes from savers to borrowers, from Will Diamond, Tim Landvoigt, and Germán Sánchez Sánchez nber.org/papers/w32573

Featured in the latest Digest: 'Online Classes and Gig Jobs Help Balance School and Work'
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Quantitative Easing (QE) in the US increases capital flows to emerging markets. The increased liquidity from QE allows investors to engage in more emerging market lending, from Annie Lee and Charles Engel nber.org/papers/w32572

Examining the impact of the expanded childless Earned Income Tax Credit on young adults’ material hardship including food, housing, and expenses, from Jiwan Lee, Katherine Michelmore, Natasha Pilkauskas, and Christopher Wimer nber.org/papers/w32571

Using an admissions lottery to estimate the effect of a non-means tested preschool program on students’ long-run earnings, employment, and family income, from Randall Akee and Leah Clark nber.org/papers/w32570

The ability to put oneself in the shoes of another person can be enhanced through standard policy tools such as neutral information provision and inter-group contact, from Marianne Andries, Leonardo Bursztyn, Thomas Chaney, and Milena Djourelova nber.org/papers/w32569

Explaining the relationship between idiosyncratic volatility and the number of listed firms in an industry through Schumpeterian creative destruction, from Söhnke M. Bartram, Gregory W. Brown, and René M. Stulz nber.org/papers/w32568

A new method for measuring dynamic welfare without assumptions about functional forms or belief formation; useful for estimating welfare effect of dynamic/stochastic shocks, from @Dbaqaee, Ariel Burstein, and Yasu Koike-Mori nber.org/papers/w32567

Absent international coordination, health-cum-trade war during a pandemic leads to less consumption and production, and inadequate global diversification of infection curves, from Viral V. Acharya, Zhengyang Jiang, Rob Richmond, and Ernst-Ludwig Von Thadden nber.org/papers/w32566

Studying different dynamic models of trade finds that the gains from trade are large, from Christoph Boehm, Andrei A. Levchenko, Nitya Pandalai-Nayar, and Hiroshi Toma nber.org/papers/w32565

The average hospital that exploited a loophole in Medicare payments increased both Medicare and total revenue by approximately 10 percent, from Atul Gupta, Ambar La Forgia, and Adam Sacarny nber.org/papers/w32564

Studying the spillover effects of a supply-side policy aimed at reducing the over-prescribing of opioids on women’s wellbeing by examining its effects on intimate partner violence, from Dave, Bilge Erten, Hummel, Pinar Keskin, and Zhang nber.org/papers/w32563

A new theoretical generalization and test for statistical discrimination and a proof of concept application using publicly available data, from Prashant Bharadwaj, Rahul Deb, and Ludovic Renou nber.org/papers/w32562

Dynamic targeting can enhance welfare gains from policy interventions, from Takanori Ida, Takunori Ishihara, Koichiro Ito 伊藤公一朗, Daido Kido, Toru Kitagawa, Shosei Sakaguchi, and 佐々木周作 ShusakuSASAKI nber.org/papers/w32561

Removing financial disincentives to move a child from foster care to adoption or kin guardianship raised children’s test scores by 31% of a standard deviation three years after their cases began, from David Simon, Aaron Sojourner, Pedersen, and Skallet nber.org/papers/w32560

Institutional investors rely heavily on customized recommendations from proxy advisors. Customization helps funds express their ideologies and allocate attention effectively, from Edwin Hu, Nadya Malenko, and Jonathon Zytnick nber.org/papers/w32559

The “lockdown” of young people was optimal during COVID-19, testing is important, and insights on patterns for other diseases, from Luiz Brotherhood, Philipp Kircher, Cezar Santos, and Michele Tertilt nber.org/papers/w32558