Interested in Economics
Chicago, IL
Joined January 2025
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Eli retweeted
The best evidence that real interest rates matter for consumption.
When households report that they expect real interest rates to be 1% lower, their planned real consumption is 0.5% higher (& vice versa). This holds even with a ton of controls, including expected income growth.
Eli retweeted
*When unions increase wages, who pays?*
It's normally v hard to answer this Q: unions don't behave randomly, they respond to firm conditions, and detailed firm data is hard to get.
Our setting in Norway tackles both...
🧵on our paper (@microsamonomics & @ALPWillen)
Recently accepted by #QJE: “Who Pays for Unions?” by Dodini (@microsamonomics), Stansbury (@annastansbury), and Willen (@ALPWillen): doi.org/10.1093/qje/qjag034
Eli retweeted
My updated list of 10 books you should read to introduce to Monetary Theory.
Preferably, but not mandatory, following this order:
1️⃣ El Dinero, Carl Menger.
2️⃣ The Promises Men Live, Harry Scherman.
3️⃣ Monetary Economics 101: The Real Bills Doctrine Of Adam Smith, Antal Fekete.
Eli retweeted
A young person asked me today for a few papers that would be great to read early on in one’s career. Here is a list I came up with (I posted a shorter list earlier in reply to a comment). There are many other great papers (and I apologize if I didn’t include yours), but my goal was to focus on papers that a 21-year-old undergrad would enjoy a lot. A paper on the asymptotic properties of the bootstrap or on some subtle point about New Keynesian models, as important as it might be, is not what I am looking for. Also, of course, the list reflects my deeply biased taste. So, feel free to add in the comment section other papers you love!
Philippe Aghion and Peter Howitt (1992), “A Model of Growth Through Creative Destruction,” Econometrica.
George A. Akerlof (1970), “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism,” Quarterly Journal of Economics.
Armen A. Alchian (1950), “Uncertainty, Evolution, and Economic Theory,” Journal of Political Economy.
William J. Baumol (1967), “Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis,” American Economic Review.
Gary S. Becker (1973), “A Theory of Marriage: Part I,” Journal of Political Economy.
Douglas W. Diamond and Philip H. Dybvig (1983), “Bank Runs, Deposit Insurance, and Liquidity,” Journal of Political Economy.
Xavier Gabaix (1999), “Zipf’s Law for Cities: An Explanation,” Quarterly Journal of Economics.
Xavier Gabaix and Augustin Landier (2008), “Why Has CEO Pay Increased So Much?,” Quarterly Journal of Economics.
Luis Garicano (2000), “Hierarchies and the Organization of Knowledge in Production,” Journal of Political Economy.
Edward L. Glaeser, Bruce Sacerdote and José A. Scheinkman (1996), “Crime and Social Interactions,” Quarterly Journal of Economics.
Sanford J. Grossman and Joseph E. Stiglitz (1980), “On the Impossibility of Informationally Efficient Markets,” American Economic Review.
Oliver Hart and John Moore (1990), “Property Rights and the Nature of the Firm,” Journal of Political Economy.
Friedrich A. Hayek (1945), “The Use of Knowledge in Society, American Economic Review.
Bengt Holmström (1979), “Moral Hazard and Observability,” Bell Journal of Economics.
Charles I. Jones (1995), “R&D-Based Models of Economic Growth,” Journal of Political Economy.
Charles I. Jones (2005), “The Shape of Production Functions and the Direction of Technical Change,” Quarterly Journal of Economics.
Michael Kremer (1993), “Population Growth and Technological Change: One Million B.C. to 1990,” Quarterly Journal of Economics.
Michael Kremer (1993), “The O-Ring Theory of Economic Development,” Quarterly Journal of Economics.
Paul Krugman (1991), “Increasing Returns and Economic Geography,” Journal of Political Economy.
Robert E. Lucas, Jr. (1978), “On the Size Distribution of Business Firms,” Bell Journal of Economics.
Kevin M. Murphy, Andrei Shleifer and Robert W. Vishny (1989), “Industrialization and the Big Push,” Journal of Political Economy.
Paul M. Romer (1990), “Endogenous Technological Change,” Journal of Political Economy.
Sherwin Rosen (1981), “The Economics of Superstars,” American Economic Review.
Alvin E. Roth (2007), “Repugnance as a Constraint on Markets,” Journal of Economic Perspectives.
Thomas C. Schelling (1971), “Dynamic Models of Segregation,” Journal of Mathematical Sociology.
Andrei Shleifer and Robert W. Vishny (1993), “Corruption,” Quarterly Journal of Economics.
Michael Spence (1973), “Job Market Signaling,” Quarterly Journal of Economics.
Robert M. Townsend (1979), “Optimal Contracts and Competitive Markets with Costly State Verification,” Journal of Economic Theory.
Martin L. Weitzman (1974), “Prices vs. Quantities,” Review of Economic Studies.
Eli retweeted
Given the rather egregious flaws in the recent SEP entry, you might want to look elsewhere for an analysis of capitalism and the main arguments for and against. Thankfully, Jerry Gaus has got you covered.
gaus.biz/Gaus-Capitalism.pdf
Eli retweeted
A function of capital accumulation, as Menger and Hayek (and Lachmann) were kind enough to remind us, is to convert goods with no economic “value” to goods with economic “value”, particularly through complementarity in the stages of production. Capital goods used for transport (e.g. a storage site, a wheelbarrow, etc.), for equipment (heavy-duty industrial presses, bulldozers) and in situ (e.g. all natural resources) may have little economic value of their own, but once they are jointly combined they are sought after and obtain relative prices. Of course, not all combinations will yield meaningful results.
Eli retweeted
My paper with Luca Fiorito on the work of H.M. Thompson is now published open access in HOPE. This is another little chapter in the broader saga of rent theory in economics, especially the broader anti-Ricardian, anti-Marshallian tradition of Fetter and Rothbard.
Link below.
Eli retweeted
There's a big cultural disconnect in academia between people for whom research is for saying something about the world, and people for whom research is a ritual that gets you in a high-status club.
Occasionally people from each group are surprised to learn the other exists.
Eli retweeted
I’m hard on Austrians, but here are some (or adjacent) that I like, follow for good takes!:
@craigduddyecon
@michaelcevlama
@JaycobYes
@elliotismz
@NathanPGoodman
@AaronSepulvedaC
@Rasko3000
@GirlBossGuru
@Capital1190
@austrosillyism
@BadmenBad
Eli retweeted
I don't think anyone who's not a fascist, or an infant, is relitigating the parts of Hobbes that left twitter is doing discourse about today. In any case:
Eli retweeted
Melhor artigo de economia que você lerá hoje ou amanhã certamente.
Pode parecer estranho, mas os economistas não possuem uma resposta clara para o que seja exatamente uma firma e sua função em um sistema econômico, apesar de possuírem modelos extremamente complexos que tomam elas como dado.
Eli retweeted
This is a common mistake made by even top economists. Markets do not protect the current distribution of wealth. The market process is a radical and dynamic disruptor of current wealth. Through decentralized individual choices, markets constantly reshuffle capital to new innovators. That’s exactly why today’s wealthy so often lobby for privileges to shield themselves from real market competition.
Eli retweeted
One thing that makes Quinn Slobodian's distortion of Mises so personally frustrating is that reading Mises in my teens introduced me to, and strongly cemented my belief in, explicit and radical cosmopolitanism.
Eli retweeted
Excited to FINALLY release toughest+most rewarding paper I've worked on...
….we attack a 150 year old Walras question that's gone unanswered, not for lack of trying (Hicks, Samuelson, Arrow; our chances?😱)...
Q: Is the market equilibrium stable or unstable?¯\_(ツ)_/¯
🧵
