Monetary Policy and Welfare with Heterogeneous Firms and Endogenous Entry (2024)
Journal Article
Cooke, D., & Damjanovic, T. (2024). Monetary Policy and Welfare with Heterogeneous Firms and Endogenous Entry. Journal of Money, Credit and Banking, https://doi.org/10.1111/jmcb.13158

This paper studies the welfare consequences of monetary policy in a sticky-wage New Keynesian model with heterogeneous firms and endogenously variable markups. Firm heterogeneity affects the volatility of the aggregate markup and the welfare benefit... Read More about Monetary Policy and Welfare with Heterogeneous Firms and Endogenous Entry.

It's not selfish (2024)
Other
Basu, P. (2024). It's not selfish. [Online news article]

Every day we make decisions. Traditional rationalist economists say that we make the decision in which our expected value or expected receipt is the highest.

How is the world after the pandemic? (2024)
Other
Basu, P. (2024). How is the world after the pandemic?. [Ei Samay]

Labour immobility between industries: Consequences for the macroeconomy (2024)
Journal Article
Basu, P., Chivers, D., & Park, C. (2024). Labour immobility between industries: Consequences for the macroeconomy. Economic Systems, Article 101184. https://doi.org/10.1016/j.ecosys.2024.101184

Workers are failing to move to the most productive industries, despite the offer of higher wages. In order to explain this phenomenon, we provide evidence that when an industry experiences a positive, labour-productivity shock, it is subsequently har... Read More about Labour immobility between industries: Consequences for the macroeconomy.

Government debt: Does the government's debt mean bad? (2023)
Other
Basu, P. (2023). Government debt: Does the government's debt mean bad?

Do Financial Markets Respond to Populist Rhetoric? (2023)
Journal Article
ÇAKMAKLI, C., DEMİRALP, S., & GÜNEŞ, G. Ş. (2023). Do Financial Markets Respond to Populist Rhetoric?. Oxford Bulletin of Economics and Statistics, https://doi.org/10.1111/obes.12591

With the global rise in populism over the last decade, there has been an increase in political commentaries (PC) by leaders that criticize their central banks and argue for lower interest rates. We analyse the effects of PCs on exchange rates, bond y... Read More about Do Financial Markets Respond to Populist Rhetoric?.

Rethinking the Welfare State (2023)
Journal Article
Kaygusuz, . R., Guner, N., & Ventura, G. (2023). Rethinking the Welfare State. Econometrica, 91(6), 2261-2294. https://doi.org/10.3982/ECTA19921

The U.S. spends significant amounts on non-medical transfers for its working-age population in a wide range of programs that support low and middle-income households. How valuable are these programs for U.S. households? Are there simpler, welfare imp... Read More about Rethinking the Welfare State.

Consistent estimation of panel data sample selection models (2023)
Journal Article
Baltagi, B. H., Jimenez-Martın, S., Labeaga, J. M., & Al-Sadoon, M. (2023). Consistent estimation of panel data sample selection models. Econometrics and Statistics, https://doi.org/10.1016/j.ecosta.2023.11.003

Consistent estimation of panel data sample selection models

The labour shortage has become a major problem in the western world (2023)
Other
Basu, P. (2023). The labour shortage has become a major problem in the western world. [Online article]

Payment delay in workfare programmes and household welfare: Theory and some evidence from India (2023)
Journal Article
Basu, P., Raj S. N, R., & Sen, K. (2024). Payment delay in workfare programmes and household welfare: Theory and some evidence from India. Manchester School, 92(2), 93-121. https://doi.org/10.1111/manc.12460

Using the lens of a life cycle model, we argue that an administrative failure of a wage payment delay in a workfare programme could adversely affect the welfare of the poor through two channels. First, it imposes an implicit consumption tax on the ho... Read More about Payment delay in workfare programmes and household welfare: Theory and some evidence from India.

COVID-19 and emerging markets: A SIR model, demand shocks and capital flows (2023)
Journal Article
Cakmaklı, C., Demiralp, S., Kalemli Ozcan, S., Yesiltas, S., & Yıldırımk, M. A. (2023). COVID-19 and emerging markets: A SIR model, demand shocks and capital flows. Journal of International Economics, 145, Article 103825. https://doi.org/10.1016/j.jinteco.2023.103825

We quantify the macroeconomic effects of COVID-19 for a small open economy. We use a two-country framework combined with a sectoral SIR model to estimate the effects of collapses in foreign demand and supply. The small open economy... Read More about COVID-19 and emerging markets: A SIR model, demand shocks and capital flows.

Evaluating Fiscal Policy Reforms Using the Fiscal Frontier (2023)
Journal Article
Chen, X., Leith, C., & Ricci, M. (2023). Evaluating Fiscal Policy Reforms Using the Fiscal Frontier. Journal of Economic Dynamics and Control, 155, Article 104733. https://doi.org/10.1016/j.jedc.2023.104733

We develop a Fiscal Frontier which traces out the maximum government debt level that can be sustained at a given welfare cost. Through duality, the intertemporal policy mix underpinning the Frontier mirrors standard Ramsey policy and de nes an upper... Read More about Evaluating Fiscal Policy Reforms Using the Fiscal Frontier.

Memory, Loss and the Aging Crisis (2023)
Other
Basu, P. (2023). Memory, Loss and the Aging Crisis. [Online newspaper]

Unconventional Monetary Policy and the Bond Market in Japan: A New Keynesian Perspective (2023)
Journal Article
Basu, P., & Wada, K. (2023). Unconventional Monetary Policy and the Bond Market in Japan: A New Keynesian Perspective. Japan and the World Economy, 67, Article 101207. https://doi.org/10.1016/j.japwor.2023.101207

Using the lens of a medium scale DSGE model, we analyze macroeconomic effects of Japan’s unconventional monetary policy which is known as Qualitative and Quantitative Easing (QQE). Our focus is on the bond market. The model features: (i) commercial b... Read More about Unconventional Monetary Policy and the Bond Market in Japan: A New Keynesian Perspective.

The Road to Sustainable Development (2023)
Other
Basu, P. (2023). The Road to Sustainable Development. [Online news article]

Evaluating Fiscal Policy Reforms using the Fiscal Frontier (2023)
Working Paper
Chen, X., Leith, C., & Ricci, M. (2023). Evaluating Fiscal Policy Reforms using the Fiscal Frontier

We develop a Fiscal Frontier which traces out the maximum government debt level that can be sustained at a given welfare cost. Through duality, the intertemporal policy mix underpinning the Frontier mirrors standard Ramsey policy and defines an uppe... Read More about Evaluating Fiscal Policy Reforms using the Fiscal Frontier.

Demonetization: Reasons behind the demonetization of the 2000 Currency Note (2023)
Other
Basu, P. (2023). Demonetization: Reasons behind the demonetization of the 2000 Currency Note

The Armenians of Aintab: The Economics of Genocide in an Ottoman Province. By Ümit Kurt. Cambridge, MA: Harvard University Press, 2021. 400 pp. Photographs, maps, tables. Hardcover, $46.00. ISBN: 978-0-674-24794-9. (2023)
Journal Article
Arbatlı, C. E. (2023). The Armenians of Aintab: The Economics of Genocide in an Ottoman Province. By Ümit Kurt. Cambridge, MA: Harvard University Press, 2021. 400 pp. Photographs, maps, tables. Hardcover, $46.00. ISBN: 978-0-674-24794-9. Business History Review, 97(1), 177-180. https://doi.org/10.1017/s000768052300020x

Silicon Valley Bank The new danger in banking? (2023)
Other
The new danger in banking?

Cushioning a crisis (2023)
Other
Basu, P. (2023). Cushioning a crisis