Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2023

Quantifying the Benefits of Labor Mobility in a Currency Union

Christopher L. HOUSE, Christian PROEBSTING, Linda L. TESAR
Unemployment differentials are greater between countries in the euro area than between U.S. states. In both regions, net migration responds to unemployment differentials, though the response is smaller in the euro area compared to the United States. We use a multi-country DSGE model with cross-borde...
Keywords: international migration, optimal currency areas, international business cycles
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Time Savings When Working from Home

Steven J. DAVIS, Nicholas A. BLOOM, Jose Maria BARRERO, Cevat Giray AKSOY, Mathias DOLLS, Pablo ZARATE
We quantify the commute time savings associated with work from home, drawing on data for 27 countries. The average daily time savings when working from home is 72 minutes in our sample. We estimate that work from home saved about two hours per week per worker in 2021 and 2022, and that it will save ...
Keywords: Work from home, commute times, allocation of time savings
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Value-Enhancing Effects of Female Independent Directors in Companies with Overconfident CEOs

Suman BANERJEE, Ronald W. MASULIS, Arun UPADHYAY
Little research exists on matching CEOs and directors. We find female independent directors (IDs) strengthen the benefits of overconfident (OC) CEOs. Female IDs reduce excess capital expenditures and less profitable acquisitions, increase R&D, and mitigate excessive risk taking. They impose grea...
Keywords: Female independent directors, Gender-diverse board, Directors’ death, Male independent directors, Bo
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Crises as Opportunities for Growth: The Strategic Value of Business Group Affiliation

Peter Kien PHAM, Jason ZEIN, Ronald W. MASULIS, Alvin E. S. Ang
We document a novel strategic motive for family business groups to utilize their internal capital markets (ICMs) during financial crises. We find that crisis-period group ICM activity is targeted toward exerting product market dominance over standalone rivals. Groups make significant post-crisis ...
Keywords: Family Business Groups, Product-market competition, Financial crisis
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Senior Fellows/Fellows

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Senior Fellows/Fellows

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May 2022

Idiosyncrasy as a Leading Indicator

Randall MORCK, Bernard YEUNG, Lu Y. Zhang
Disequilibrating macro shocks affect different firms' prospects differently, increasing idiosyncratic variation in forward-looking stock returns before affecting economic growth. Consistent with most such shocks from 1947 to 2020 enhancing productivity, increased idiosyncratic stock return variation...
Keywords: Subjective expectations, business-level uncertainty
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