Homework for Wednesday 10/12

[pmichaillat]

Brief summary of the homework for next week:

• Watch the lecture videos. The videos will be made available shortly (hopefully by Saturday).

• Read the papers in the "Price and Wage Rigidities" section.

• Prepare summaries of the papers. Please try to keep your summaries to 15 minutes or less so we have time for the research presentations and discussion of the lectures.

  • Camilla: "The Fair Wage-Effort Hypothesis and Unemployment​"
  • Olivia: "Fairness, Reciprocity, and Wage Rigidity​"
  • Matt: "Pricing Under Fairness Concerns"

• Work on your research projects and bring a 5–7 slides to describe progress you have made and discuss next steps.

Olivia's project

• Present more data on food loss (maybe bring some international evidence)
• Think about the key variables to be described and what a model should include and depict
• Think about farm subsidies and how it could be modeled

Camilla's project

• Replot Beveridge curves by industry in log scale
• Estimate the industry Beveridge curves, allowing for breaks (see the methodology in this paper and the associated code)
• Computing efficient unemployment rate by industry would require recruiting cost by industry, which may be done from the NES 1997 dataset uploaded in this folder). The NES dataset is described on p. 11 in this paper
• Get in touch with Amy Handlan to ask about her BurningGlass data on vacancies and applications

Matt's project

• Use labor-market papers to see how to obtain a rigid price and solve the model

• Review key non-behavioral models of price rigidity

  • Staggered pricing
  • Calvo pricing
  • Rotemberg pricing
  • Menu cost pricing and near rationality
  • Sticky information
  • Menu costs and the neutrality of money