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IT and Urban Polarization

By Jan Eeckhout, Christoph Hedtrich, and Roberto Pinheiro

òòò½Íø Journal: Macroeconomics, January 2026

We show that differential IT investment across cities has been a key driver of job and wage polarization since the 1990s. Using a novel dataset, we establish two stylized facts: IT investment is highest in firms in large and expensive cities, and the decl...

Immigration, Innovation, and Growth

By Stephen J. Terry Thomas Chaney Konrad B. Burchardi Lisa Tarquinio Tarek A. Hassan

òòò½Íø Review, March 2026

We propose a novel identification strategy to isolate exogenous immigration shocks across US counties, by interacting quasi-random variations in the composition of ancestry across counties with the contemporaneous inflow of migrants from different countri...

Sequential Cursed Equilibrium

By Shani Cohen and Shengwu Li

òòò½Íø Review, March 2026

We propose an extensive-form solution concept, with players who neglect information from hypothetical events but make inferences from observed events. Our concept modifies cursed equilibrium (Eyster and Rabin 2005) and allows that players can be cursed ab...

Equal Pay for Similar Work

By Diego Gentile Passaro, Fuhito Kojima, and Bobak Pakzad-Hurson

òòò½Íø Review, March 2026

Equal pay laws increasingly require that workers with different group identities doing "similar" work are paid equal wages within firm. We study such "equal pay for similar work" (EPSW) policies theoretically and test our models' predictions empirically u...

Dynamics of the Long-Term Housing Yield: Evidence from Natural Experiments

By ³Õ±ð°ùó²Ô¾±³¦²¹ µþ䳦°ì±ð°ù-±Ê±ð°ù²¹±ô, Jonathon Hazell, and Atif Mian

òòò½Íø Review, March 2026

Each month, a fraction of UK property leases are extended by 90 years or more. We construct a new dataset using thousands of these natural experiments since 2000 and estimate the expected long-term housing yield, y*. After remaining steady at around 5 per...

The Price of War

By Jonathan Federle, ´¡²Ô»å°ùé Meier, Gernot J. ²Ñ³Ü̈±ô±ô±ð°ù, Willi Mutschler, and Moritz Schularick

òòò½Íø Review, March 2026

We assemble a new dataset spanning 150 years and 60 countries to study the economic toll of war. A war of average intensity is associated with an output drop of close to 10 percent in the war-site economy, while consumer prices rise by approximately 20 pe...

What You Don't Know May Be Good for You

By Johannes ±áö°ù²Ô±ð°ù and Larry Samuelson

òòò½Íø Review, March 2026

We consider an economy in which long-lived experts are matched with short-lived clients. Experts choose the type of client with whom they match, unobserved by the market. The interaction outcome depends on both the expert's and the client's type. We study...