New research shows that informal borrowing and lending relationships between firms greatly enhance the liquidity of modern financial systems, but they can also make them more fragile, from Luigi Bocola and Gideon Bornstein nber.org/papers/w31026

Excited to see the NC #MedicaidExpansion pass! My work with Gideon Bornstein finds expanding Medicaid significantly improves peoples' financial health---and it can even crowd *in* the supply of credit by making people more financially resilient

Here's the program for this year's installment of the Macro Public Finance session at NBER Summer institute, with exciting topics ranging from the dynamics of tax policy, international policy coordination, and debt, to taxing the rich: conference.nber.org/altsched/si23m… NBER

The SED is super exciting this year which is why I put together the best of all sessions 😝! Come for Simon Mongey & Mike Waugh and Dan Greenwald 🇺🇦, stay for my brand new project with Gideon Bornstein: we show how high market power firms exacerbate consumption inequality!

Open letter by Penn faculty in support of Israel and in protest to the surge of antisemitic activity on campus #StandWithIsrael #StandUpToJewishHate #stopantisemitism #BringThemHomeNow docs.google.com/forms/d/e/1FAI…

מתוך הטבח הנורא עלו סיפורי גבורה יוצאי דופן - צפו בסיפור המדהים מה-7 לאוקטובר שנחשף היום

38 תינוקות וילדים מתחת לגיל 18 נחטפו מביתם. הם שבויים בידי חמאס מבלי שאיש דואג להם, מטפל בהם או משחק איתם. החזירו אותם הביתה, עכשיו.

How does changing social insurance programs, like Medicaid, affect household debt? Gideon Bornstein and I find borrowing can *increase* when insurance makes consumers more financially resilient! Thanks for the chance discuss this research on The Wharton School's new podcast Ripple Effect 👇

We’re hiring pre-docs! Gideon Bornstein, Sergio Salgado, and I are accepting applications for a full-time pre-doc. Work alongside us at The Wharton School on research in macroeconomics, household finance, and inequality. Priority deadline is *Nov. 26* Apply: wd1.myworkdaysite.com/en-US/recruiti…

New CEPR Discussion Paper - DP19672 Nonlinear Pricing and Misallocation Gideon Bornstein Gideon Bornstein Penn The Wharton School, Alessandra Peter Alessandra Peter New York University ow.ly/EzQY50U5otc #CEPR_MG #economics

Think quantity discounts only make you end up with expired painkillers? Our 🚨new and revised paper🚨 shows how in general equilibrium, they overturn classic results on misallocation across firms and across consumers. Gideon Bornstein 🧵

Nonlinear pricing breaks the tight link between markup dispersion and misallocation across firms. Instead, significant misallocation across consumers of the same firm, is found, from @gidibo and Alessandra Peter nber.org/papers/w33144

פעילת הימין מור שעל מדברת עם מרצה לתלמוד באוניברסיטת חיפה על הנכבה

Population aging affects firm entry and profits via demand: older households' higher consumer inertia acts as a barrier to entry and lets incumbents raise markups, from Gideon Bornstein nber.org/papers/w33820

There is a close to ubiquitous finding in WB firm-level diagnostics of declining entry of new firms & increased incumbency of older firms. And associated recommendations on the regulatory side. As this paper lays out for case of US, demand effects from demography also matter.

Great paper by Alessandra Peter and Gideon Bornstein conditionally accepted at American Economic Review. I agree with the paper of the year (though, admittedly I’m biased 🙃)

While we’re waiting for Musk to overthrow the present regime, would you like to learn about some recent advances in markups and misallocation, and what it implies for some recent papers? The link is below:

Forthcoming in the JEL: "How Do Central Banks Control Inflation? A Guide for the Perplexed" by Laura Castillo-Martinez and Ricardo Reis. aeaweb.org/articles?id=10…

אני חושש שיש חוסר הבנה עמוק לגבי המצב בעזה בימים האחרונים. הוא שונה מהותית מכל מה שהיה עד כה במלחמה. היו כאן מגיבים, חלקם תמימים, חלקם פשוט נאצים, שאמרו שהם כבר שמעו אזהרות כאלה מתחילת המלחמה ואין שום סיבה להאמין להן. אז לא. המצב הוא שונה קיצונית מכל מה שהיה עד עכשיו.>

Forthcoming in the AER: "Nonlinear Pricing and Misallocation" by Gideon Bornstein and Alessandra Peter. aeaweb.org/articles?id=10…