Microeconomic Insights
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Microeconomic Insights
@micreconinsights.bsky.social
Distilling research for public debate. RTs and Following ≠ endorsement.
Additionally the paper finds no evidence of bunching around the tax threshold in Norway, suggesting limited tax evasion.

Read here: microeconomicinsights.org/wealth-taxat...
Wealth Taxation and Household Saving: Evidence from Norway | Microeconomic Insights
The desirability of wealth taxation depends on the extent to which it distorts savings decisions. However, economic theory does not provide firm guidance on the magnitude or even the sign of this effe...
microeconomicinsights.org
October 1, 2025 at 12:05 PM
The paper finds that higher exposure to wealth taxation causes households to save more as opposed to less. This increase in saving is primarily financed by increased labor earnings, rather than lower consumption.
October 1, 2025 at 12:05 PM
The average subsidized firm in the data promises to create 1,400 jobs and receives a subsidy worth $150 million over 10 years.

Read here: microeconomicinsights.org/bidding-for-...
Bidding for Firms: Subsidy Competition in the United States | Microeconomic Insights
State and local governments regularly offer large discretionary subsidies to attract firms, and the accompanying jobs, to their jurisdictions. In fact, this deployment of subsidies is estimated to be ...
microeconomicinsights.org
September 17, 2025 at 3:58 PM
The deployment of subsidies is estimated to be one of the largest economic development tools used in the United States. The paper finds that the scope for discretionary subsidies to be an effective tool to reduce geographic inequality in the U.S. is extremely limited.
September 17, 2025 at 3:58 PM
"If private firms cannot profitably finance college with equity or state-contingent debt, should the government subsidize these contracts?"

Read here: microeconomicinsights.org/a-better-way...
A better way to pay for college? | Microeconomic Insights
Economists have long advocated for alternative financial contracts to mitigate the risks of investing in education (Barr et al. 2017; Chapman 2006; Palacios 2004; Zingales 2012). Most famously, Friedm...
microeconomicinsights.org
September 3, 2025 at 10:49 AM
"The main finding is that adverse selection – the sorting of individuals with worse - than-average outcomes into insurance-like contracts – has unraveled private markets for these products, making them unprofitable for firms to offer."
September 3, 2025 at 10:49 AM
Rural-urban migration may be a key pathway out of poverty.

Households that sent a migrant saw big increases in consumption, of around 30% on average per household member.

Our analysis also suggests that families send a migrant out only as a last resort.
September 3, 2025 at 10:05 AM
The findings raise urgent new questions about how labor demand changes as new work emerges, and how AI technologies will reshape tasks and occupations in the decades ahead.

Read here: microeconomicinsights.org/the-race-bet...
microeconomicinsights.org
April 28, 2025 at 1:37 PM
Our new article points to an implicit “race” between task displacement and new task creation in displacing and reinstating labor demand, and suggest that automation may now be pulling ahead in this race.
April 28, 2025 at 1:37 PM
These differences are often attributed to variation in decision-maker preferences, sparking calls to standardize decision-making.

The paper suggests an alternative framework where experts differ not only in preferences but also in diagnostic skill, with both shaping decisions.
January 28, 2025 at 4:02 PM
Exploring how this market integration changed electricity production, wholesale prices, generation costs, and renewable investments, authors find overall that it increased solar generation by nearly 180%, saved generation costs by 8%, and reduced carbon emissions by 5%.
December 19, 2024 at 12:22 PM
This paper assesses the accuracy of workers’ beliefs about their outside options and explores the consequences of potential misperceptions.

Read here: microeconomicinsights.org/worker-belie...
Worker Beliefs About Outside Options | Microeconomic Insights
Firms differ substantially in the wages they pay to similar workers. Standard models of the labor market assume that workers have accurate beliefs about the differences in wages across firms, includin...
microeconomicinsights.org
November 20, 2024 at 11:55 AM