Look for the next GCER Newsletter in June. Past Newsletters can be found here.
News Archive - Page 17
Apr 1, 2013
Gale and O'Brien sing the blues over Use-or-Lose!
Crowded airports are an unfortunate fact of life. As the demand for air travel grows, regulators must deal with increasingly stringent limits on airport capacity. Many U.S. and European airports use takeoff-and-landing slots to determine which airlines fly at peak times. One concern is that airlines may hoard slots solely in order to reduce competition. In hopes of mitigating this inefficiency, regulators have imposed so-called "use-or-lose" provisions. These provisions require that the airlines utilize a certain minimum percentage of their slots on a monthly or annual basis. (Water rights, mineral leases, and fishing quotas have also been subject to use-or-lose provisions.) GCER Fellow Ian Gale and co-author Dan O´Brien from the Federal Trade Commission have examined the impact of use-or-lose provisions on social welfare.
In a recent paper, "The Welfare Effects of Use-or-Lose Provisions in Markets with Dominant Firms" (forthcoming in the American Economic Journal: Microeconomics), Gale and O´Brien find that use-or-lose provisions may be ineffectual or worse. While the provisions are imposed with the aim of inducing firms to divest themselves of unused capacity, the provisions may actually induce those firms to acquire capacity from competitors. A consequence is that aggregate output and social welfare may both fall. Gale and O´Brien conclude that the welfare effects of use-or-lose provisions are ambiguous overall, and they depend on the particular market in ways that make policy prescriptions difficult.
Mar 29, 2013
The innaugural program features three distinguished economists who will spend time in the Department during the 2012-13 academic year.
Professor of Economics at U Penn, has published extensively on issues relating to consumption inequality, redistribution, and social insurance. His work has been prominently cited in top press outlets such as The Economist, the New York Times, and the Wall Street Journal. Professor Krueger visited the department in December of 2012, where he presented his recent work on "Intergenerational Redistribution in the Great Recession" in the Macroeconomics workshop. He returns on February 11-13, and will consult with faculty and students in the department.
Associate Professor of Economics at Northwestern U, is one of the rising stars in the profession. He is known for is research on the macroeconomic implications of credit market frictions. Professor Lorenzoni will visit the department during the week of April 15-19 where he will present his latest research in the Macroeconomics workshop, and will meet with faculty and students.
Professor of Economics at NYU, is well known for his quantitative assessments of the U.S. labor market. His work spans a number of critical policy issues ranging from social security reform to welfare-to-work programs to labor market implications of the fiscal stimulus. Professor Violante will visit the department during the week of March 11-15 where he will present his latest research in the Macroeconomics workshop, and will meet with faculty and students.
Mar 13, 2013
The Graduate Committee is pleased to announce that Mauricio Tejada has won the sixteenth annual competition for the Razin Prize, for his paper "Dual Labor Markets and Labor Protection in an Estimated Search and Matching Model." Congratulations to Mauricio and his thesis advisor Luca Flabbi.
The award ceremony will be held on April 3rd 2013, and will coincide with the annual Razin Lecture in Economic Policy by Ronny Razin (LSE). Further details will follow.
Mar 12, 2013
Ronny Razin is an internationally recognized political economist whose work spans a wide range of issues and problems. Some of his best known work concerns the critical question of whether democracies aggregate information properly. In most democratic countries, voters are motivated to use the information they have to determine the winning candidate. In one of his more widely acclaimed studies, Professor Razin suggests a second motivation, one no less important: voters are motivated to use their votes to affect the policy choice of the winning candidate by influencing candidates' beliefs. Professor Razin's research shows how and why these two motivations may conflict to produce unsatisfactory electoral results and policy outcomes.
Professor Razin has also published several prominent papers on interest group and party formation, and on political communication. His current work studies the unusual political economics of religion, its role in voting participation, social cooperation, and policy making. This year's Razin Prize Recipient is Mauricio Tejada for his excellent paper on: "Dual Labor Markets and Labor Protection in an Estimated Search and Matching Model", under the guidance of Luca Flabbi.
Professor Razin is brother of the late Ofair Razin in whose honor the Lecture is named. The Razin Lecture is to be accompanied by the awarding of the Razin Prize for best research paper by an advanced graduate student. Click here for more on the Razin Prize and Policy Lecture, its background, and history.
Dec 4, 2012
This week marks the arrival of the first of three Distinguished Visiting faculty this academic year. Dirk Krueger, Professor of Economics at the University of Pennsylvania arrives at Georgetown this week to meet with faculty and students in the Department of Economics. Professor Krueger has published extensively on issues relating to consumption inequality, redistribution, and social insurance. His work has been prominently cited in top press outlets such as The Economist, the New York Times, and the Wall Street Journal. During his stay at Georgetown, Professor Krueger will present his work on "Intergenerational Redistribution in the Great Recession" in the Macroeconomics workshop.
Professor Krueger joins Guido Lorenzoni, Associate Professor of Economics, Massachusetts Institute of Technology and Gianluca Violante, Professor of Economics, New York University as the inaugural Distinguished Visiting faculty.