David Baqaee
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View article: What if? The macroeconomic and distributional effects for Germany of a stop of energy imports from Russia
What if? The macroeconomic and distributional effects for Germany of a stop of energy imports from Russia Open
This paper discusses the economic effects of a potential cut‐off of the German economy from Russian energy imports. We use a multi‐sector open‐economy model and a simplified approach based on an aggregate production function to estimate th…
View article: Sufficient Statistics for Measuring Forward-Looking Welfare
Sufficient Statistics for Measuring Forward-Looking Welfare Open
We provide a method to measure welfare, in money-metric terms, taking into account expectations about the future.Our two key assumptions are that (1) the expenditure function is separable between the present and the future, and (2) there a…
View article: Networks, Barriers, and Trade
Networks, Barriers, and Trade Open
We study a flexible class of trade models with international production networks and arbitrary wedge‐like distortions like markups, tariffs, or nominal rigidities. We characterize the general equilibrium response of variables to shocks in …
View article: Micro Propagation and Macro Aggregation
Micro Propagation and Macro Aggregation Open
This article reviews a framework for studying the aggregation and propagation of microeconomic shocks in general equilibrium. We discuss the determinants of aggregate measures of real economic activity, like real GDP, real domestic absorpt…
View article: Replication Data for: 'Measuring Welfare by Matching Households across Time'
Replication Data for: 'Measuring Welfare by Matching Households across Time' Open
The data and programs replicate tables and figures from "Measuring Welfare by Matching Households across Time", by Baqaee, Burstein, and Koike-Mori. Please see the readme file for additional details.
View article: The Supply-Side Effects of Monetary Policy
The Supply-Side Effects of Monetary Policy Open
We propose a supply-side channel for the transmission of monetary policy. We show that in an economy with heterogeneous firms and endogenous markups, monetary shocks have first-order effects on aggregate TFP. If high-markup firms have lower…
View article: Replication Data for: "The Supply-Side Effects of Monetary Policy"
Replication Data for: "The Supply-Side Effects of Monetary Policy" Open
This is the replication package for "The Supply-Side Effects of Monetary Policy," accepted in 2023 by the Journal of Political Economy.
View article: Consumer Surplus from Suppliers: How Big is it and Does it Matter for Growth?
Consumer Surplus from Suppliers: How Big is it and Does it Matter for Growth? Open
We investigate the effects of input variety creation and destruction on both micro-and macroeconomic outcomes using detailed data from Belgium.We estimate that marginal costs rise by 0.6% for every 1% of suppliers lost.We show that this el…
View article: Replication Data for: 'Welfare and Output with Income Effects and Taste Shocks'
Replication Data for: 'Welfare and Output with Income Effects and Taste Shocks' Open
The data and programs replicate tables and figures from "Welfare and Output with Income Effects and Taste Shocks", by Baqaee and Burstein. Please see the Read Me file for additional details.
View article: Measuring Welfare by Matching Households Across Time
Measuring Welfare by Matching Households Across Time Open
The money metric utility function is an essential tool for calculating welfare-relevant growth and inflation.We show how to recover it from repeated cross-sectional data without making parametric assumptions about preferences.We do this by…
View article: Keynesian Production Networks and the COVID-19 Crisis: A Simple Benchmark
Keynesian Production Networks and the COVID-19 Crisis: A Simple Benchmark Open
The COVID-19 crisis is a seemingly all-encompassing shock to supply and demand. These negative shocks affected industries differently: some switched to remote work, maintaining employment and production, while others reduced capacity and s…
View article: Welfare and Output with Income Effects and Taste Shocks
Welfare and Output with Income Effects and Taste Shocks Open
We present a unified treatment of how welfare responds to changes in budget sets or technologies with taste shocks and non-homothetic preferences.We propose a welfare metric that ranks production possibility frontiers that differs from one…
View article: The Supply-Side Effects of Monetary Policy
The Supply-Side Effects of Monetary Policy Open
We propose a supply-side channel for the transmission of monetary policy.We show that in an economy with heterogeneous firms and endogenous markups, demand shocks such as monetary shocks have a first-order effect on aggregate productivity.…
View article: Entry vs. Rents
Entry vs. Rents Open
A tension between entry and rents lies at the core of a general theory of aggregation with scale effects. This paper characterizes the responses of macro aggregates to micro shocks in disaggregated economies with general forms of entry, in…