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Market Fragmentation

By Daniel Chen and Darrell Duffie

òòò½Íø Review, July 2021

We model a simple market setting in which fragmentation of trade of the same asset across multiple exchanges improves allocative efficiency. Fragmentation reduces the inhibiting effect of price-impact avoidance on order submission. Although fragmentation ...

Shopping for Lower Sales Tax Rates

By Scott R. Baker, Stephanie Johnson, and Lorenz Kueng

òòò½Íø Journal: Macroeconomics, July 2021

Using comprehensive high-frequency state and local sales tax data, we show that shopping behavior responds strongly to changes in sales tax rates. Even though sales taxes are not observed in posted prices and have a wide range of rates and exemptions, c...

On Her Own Account: How Strengthening Women's Financial Control Impacts Labor Supply and Gender Norms

By Erica Field, Rohini Pande, Natalia Rigol, Simone Schaner, and Charity Troyer Moore

òòò½Íø Review, July 2021

Can increasing control over earnings incentivize a woman to work, and thereby influence norms around gender roles? We randomly varied whether rural Indian women received bank accounts, training in account use, and direct deposit of public sector wages int...

Does Biology Drive Child Penalties? Evidence from Biological and Adoptive Families

By Henrik Kleven, Camille Landais, and Jakob Egholt ³§Ã¸²µ²¹²¹°ù»å

òòò½Íø Review: Insights, June 2021

This paper investigates whether the impact of children on the labor market outcomes of women relative to men—child penalties—can be explained by the biological links between mother and child. We estimate child penalties in biological and adoptive fami...