Preprint, not peer-reviewedNBER
Medicaid expansion raised credit card borrowing, working paper finds
This working paper, a preprint not yet reviewed by other scientists, uses data on 10 million people and staggered expansions of Medicaid across ZIP codes to estimate how social insurance affects household debt. It finds that a 1 percentage point increase in a ZIP code's Medicaid-eligible population increased credit card borrowing by 0.38%. The authors say increased credit supply, driven by households' improved financial resilience, drives this rise and contributes 30% of the net welfare gains from expanding Medicaid.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
Rising global risk premia cut firms' investment, working paper finds
This working paper, a preprint not yet reviewed by other scientists, studies how global financial conditions pass through to firms' investment. It finds that increases in risk premia are followed by large investment contractions, particularly among firms with higher default risk. The authors argue that smoothing cash flows reduces firms' quantity of risk and dampens international financial transmission.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
In Kenya, purchase subsidies for induction stoves outperform usage subsidies
This working paper, a preprint not yet reviewed by other scientists, reports a randomized trial among 2,134 charcoal users in Kenya, testing purchase price subsidies, usage subsidies and access to an interest-free loan for an induction stove. The authors find that usage subsidies of 75% had a precise zero effect on adoption and usage, while purchase price subsidies generated large welfare gains. They say credit constraints raised the subsidy's efficacy.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
Foreign ideas have large causal effects on innovation, working paper finds
This working paper, a preprint not yet reviewed by other scientists, builds a genealogy of technologies from the full text of 13 million patents to trace foreign inputs into innovation. It finds that 54% of U.S. technologies build on at least one foreign input. Using historical migrant settlement as a source of variation, it reports that counties more exposed to a foreign country's knowledge invent more technologies building on it.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
Three- to four-fifths of aquifers are pumped faster than optimal, paper finds
This working paper, a preprint not yet reviewed by other scientists, estimates a dynamic model of groundwater extraction for each of the world's aquifers, using remote sensing and economic data. It finds that three- to four-fifths of aquifers are extracted more rapidly than is optimal, reducing their present value and creating welfare losses in the trillions of dollars. The authors also find that policies guaranteeing constant water quantities generate larger welfare costs.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
New screening technologies could split credit markets into lender segments
This working paper, a preprint not yet reviewed by other scientists, is a model of lenders competing for borrowers with new screening technologies. The authors find that when screening errors are correlated, perhaps because of similar AI systems, lenders specialize into distinct segments with different interest rates. They say technological and regulatory changes, such as open banking, affect financial access unevenly and can help or harm financially excluded borrowers.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
U.S. monetary tightening raises global price of risk, paper argues
This working paper, a preprint not yet reviewed by other scientists, proposes a general equilibrium model in which U.S. monetary policy revalues the wealth of currency-mismatched arbitrageurs and so affects global risk premia. The authors quantify the macroeconomic spillovers this creates abroad and the role of policy responses in other countries. They say that in a potential future with higher dollar interest rates, these spillovers would be dampened.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
Great Recession lowered mortality by about 2 percent, working paper estimates
This working paper, a preprint not yet reviewed by other scientists, uses a dynamic factor time series model to estimate the national mortality impact of the Great Recession. It estimates that the recession reduced the average annual, age-adjusted mortality rate by about 2 percent, with effects persisting for at least a decade. The authors say the welfare gain from this mortality decline is quantitatively significant relative to the welfare loss from lower consumption.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
Medical spending could overwhelm federal budget, working paper warns
This working paper, a preprint not yet reviewed by other scientists, presents scenarios for future medical spending, ranging from rapid growth in expensive new treatments to cost-reducing technology. Medical spending has nearly tripled as a share of gross domestic product (GDP) since 1970 but has barely exceeded GDP growth since 2010. The author argues that even modest increases in spending relative to GDP would overwhelm the federal government's ability to pay for medical care with current tax instruments.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
Immigration matching recent skill mix raises native welfare in 14 of 17 economies
This working paper, a preprint not yet reviewed by other scientists, is a general equilibrium model of the labor market and fiscal effects of immigration, calibrated to 17 countries over 2015-2019. For inflows matching the skill composition of 2019-2024 arrivals, the authors find native welfare rises in 14 of 17 economies, and in most cases both lower-skilled and higher-skilled natives gain through different channels. Lower-skilled natives gain mainly from higher pre-tax earnings, while higher-skilled natives gain mainly from lower labor-tax burdens.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
Efficient coal plants in China raised emissions under carbon market, paper finds
This working paper, a preprint not yet reviewed by other scientists, uses plant-level data from satellite imagery and machine learning to study China's nationwide, rate-based carbon market, launched in 2021. It finds that high-efficiency power plants increased electricity generation and carbon dioxide (CO2) emissions by approximately 5% relative to low-efficiency plants, and that air quality worsened downwind of them. The authors say that if China's goal is to reduce emissions, benchmarks will need to be tightened or an alternative system adopted.
- Published
- Oct 20, 2026
Preprint, not peer-reviewedNBER
Multilateral export controls reduce adversaries' imports more than unilateral ones
This working paper, a preprint not yet reviewed by other scientists, combines new data on U.S. export control classifications and licensing outcomes with a quantitative general equilibrium model. It finds that multilateral controls reduce adversaries' imports of controlled products far more than unilateral U.S. controls, with only 7% of the reduction replaced by other countries, compared with 28% under unilateral U.S. policy. The authors say multilateral controls cut adversaries' real military expenditure, and that the two approaches impose a similar civilian cost.
- Published
- Oct 20, 2026