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Research Briefs·Dec 3, 2024

Inflation and Treasury Convenience

Anna Cieslak, Wenhao Li, and Carolin Pflueger
Treasury convenience yields and inflation were positively correlated during the inflationary 1970s-1980s, but negatively pre-WWII and post-2000. These findings are explained in a model where supply-driven inflation gives rise to a “money channel,” raising the cost of holding money and...
Research Briefs·Nov 26, 2024

Climate Capitalists

Niels Gormsen, Kilian Huber, and Sangmin Simon Oh
Firms’ perceived cost of green capital has decreased since the rise of sustainable investing. Sustainable investing has surged since 2016, with green firms’ perceived cost of capital on average 1 percentage point lower than brown firms.
Research Briefs·Nov 26, 2024

Corporate Discount Rates

Niels Gormsen and Kilian Huber
Changes in perceived cost of capital have minimal impact on discount rates in the short- and medium-term; rather, only over the long term (more than 10 years) do discount rates align with the perceived cost of capital.
Research Briefs·Nov 20, 2024

Industrial Policies and Innovation: Evidence from the Global Automobile Industry

Yucheng Wang, Panle Jia Barwick, Hyuk-soo Kwon, Shajun Li, and Nahim B. Zahur
Industrial policies (IPs) targeting electric vehicles (EVs) are associated with an increase in the number of EV patents. Firms with more EV experience innovate more rapidly, suggesting path dependence.
Research Briefs·Nov 13, 2024

Exchange Rates, Natural Rates, and the Price of Risk

Rohan Kekre and Moritz Lenel
Persistent demand shocks, reflected in persistent interest rate differentials, account for 75% of the variance in the dollar/G10 exchange rate. Currency intermediation shocks play a key role at higher frequencies, especially during crises when the dollar appreciates despite lower US...
Research Briefs·Nov 11, 2024

Carbon Burden

Lubos Pastor, Robert F. Stambaugh, and Lucian A. Taylor
The US corporate sector’s “carbon burden” (the present value of social costs of its future carbon emissions) is 131% of total corporate equity value; 77% of individual firms have carbon burdens exceeding their market capitalizations.
Topics: Energy & Environment
Research Briefs·Nov 6, 2024

Poverty, Hardship, and Government Transfers

Bruce Meyer, Jeehoon Han, and James X. Sullivan
In the years leading up to the pandemic and during 2020, income poverty and consumption poverty tracked closely. The two measures diverged in subsequent years, however, apparently due to savings behavior: expanded unemployment benefits and stimulus payments boosted savings and...
Research Briefs·Oct 31, 2024

Can Interest Groups Influence Elections? Evidence from Unions in Great Britain 1900-2019

Alexander Fouirnaies
Union sponsorship in British elections historically benefits candidates, causing an inflow of resources into constituency-party organizations, and promotion of union-friendly candidates in parliament, but only moderate shifts in the balance of power between parties.
Research Briefs·Oct 24, 2024

Incentives to Vaccinate

Pol Campos-Mercade, Armando N. Meier, Stephan Meier, Devin Pope, Florian H. Schneider, and Erik Wengström
A guaranteed $20 incentive increases vaccine uptake by 13 percentage points in the short run and 9 in the long run. Guaranteed incentives are more effective than lottery-based, charitable, or individually targeted incentives, though all boost vaccinations.
Research Briefs·Oct 23, 2024

Perceived Political Bias of the Federal Reserve

Pei Kuang, Michael Weber, and Shihan Xie
There exists significant heterogeneity among US consumers in their perceived political stance of the Fed, which plays a crucial role in shaping macroeconomic expectations and trust in the institution.