Calendrier du 16 mars 2023
Macroeconomics Seminar
Du 16/03/2023 de 16:00 à 17:15
PSE- 48 boulevard Jourdan, 75014 Paris, salle R2-21
ENGBOM Niklas (New York University)
Misallocative Growth
Texte intégral
Travail et économie publique externe
Du 16/03/2023 de 12:30 à 13:30
PSE- 48 boulevard Jourdan, 74014 Paris, salle R1-09
NIX Emily (USC)
Dynamics of Abusive Relationships
Policymakers and advocates are beginning to recognize that domestic abuse encompasses a range of damaging behaviors beyond just physical violence, including economic and emotional abuse. In this paper, we provide rigorous evidence on the defining role of coercive control in abusive relationships. Using unique administrative data on cohabitation and domestic violence and a matched control event study design along with a within-individual comparison of outcomes across relationships, we document three new facts. First, women who begin relationships with (eventually) physically abusive men suffer large and significant earnings and employment falls immediately upon cohabiting with the abusive partner. Second, abusive men impose economic costs on all their female partners, even those who do not report physical violence to the police. Third, abusive relationships are associated with decreases in total household income, implying an efficiency loss. To rationalize these key facts, we develop a new dynamic model where women do not perfectly observe their partner's type, and abusive men have an incentive to use coercive control in early periods to sabotage women’s outside options and their ability to exit the relationship. The dynamic model features endogenous break-up, men's coercive control and physical violence, and women's labor supply and learning about the men's underlying types. The model yields a series of empirical predictions which we validate in the data. We further harness the model predictions to revisit some classic results on domestic violence and show that the relationship between domestic violence and women's outside options is linked crucially to break-up dynamics.
TOM (Théorie, Organisation et Marchés) Lunch Seminar
Du 16/03/2023 de 12:30 à 13:30
Salle R1-14, Campus Jourdan, 75014 Paris
VOHRA Rakesh (University of Pennsylvania)
*Contagion and Bailouts in Financial Networks
Diversified cross-shareholding networks are thought to be more resilient to shocks, but diversification also increases the channels by which a shock can spread. To resolve these competing intuitions we introduce a stochastic model of a diversified equity holding network in which a firm's valuation depends on its cash endowment and the shares it owns in other firms. Our stochastic model of holding networks is based on random matrices rather than Erdos-Renyi type random graphs. We show that a concentration of measure phenomenon emerges: almost all realized holding networks instances drawn from any probability distribution in a wide class are resilient to contagion if endowments are sufficiently large. Furthermore, the size of a shock needed to trigger widespread default increases with the exposure of firms to each other. Distributions in this class are characterized by the property that a firm's equity shares owned by others are weakly dependent yet lack ``dominant'' shareholders.
As widespread default involves substantial deadweight costs, to counter them, a regulator can inject capital into failing firms. These injections have positive spillovers that can trigger a repayment cascade. But which firms should the regulator bailout so as to minimize the total injection of capital while ensuring solvency of all firms? While the problem is, in general, NP-hard, for a wide range of networks that arise from a stochastic model of the kind just described, we show that the optimal bailout can be implemented by a simple index policy in which a firm index depends only on its characteristics and its position in the network. Specific examples of the setting include core-periphery networks.
This talk is based on two papers. One joint with Victor Amelkin and Santosh Venkatesh and the other joint with Krishna Dasaratha and Santosh S. Venkatesh.