Research

Subjective Models of the Macroeconomy: Evidence From Experts and Representative Samples | with Carlo Pizzinelli, Chris Roth, and Johannes Wohlfart | Forthcoming, Review of Economic Studies

Coverage: New York Times

Short summary: We study people's subjective models of the macroeconomy and shed light on their attentional foundations. To do so, we measure beliefs about the effects of macroeconomic shocks on unemployment and inflation. Within samples of both 6,500 US households and 1,500 experts, beliefs are widely dispersed, even about the directional effects of shocks, and there are large differences in average beliefs between households and experts. Part of this disagreement arises from selective retrieval of different propagation channels of macroeconomic shocks.

Shallow Meritocracy

Coverage: Twitter thread

Short summary: Meritocracies aspire to reward hard work but promise not to judge individuals by the circumstances into which they were born. However, the choice to work hard is often shaped by circumstances. I show that people's merit judgments are insensitive to circumstances' effect on choice. In an experiment, US participants judge how much money workers deserve for the effort they exert. Unequal circumstances discourage some workers from working hard. Nonetheless, participants hold disadvantaged workers responsible for their choices. Participants reward the effort of disadvantaged and advantaged workers identically, regardless of the circumstances under which choices are made.

Narratives about the Macroeconomy | with Ingar Haaland, Chris Roth, and Johannes Wohlfart

Coverage: VoxEU, FAS (German), SPIEGEL [1] (German), SPIEGEL [2] (German), Twitter thread
Superseding an earlier version with the title "Inflation Narratives".

Short summary: We provide evidence on narratives about the macroeconomy—the stories people tell to explain macroeconomic phenomena—in the context of a historic surge in inflation. We measure narratives about the rise in inflation in open-ended survey responses and represent them as Directed Acyclic Graphs. Our approach allows us to characterize laypeople's economic narratives. In a series of experiments, we show that narratives about the past shape how people forecast the future and how they interpret new information.

What's Worth Knowing? Economists' Opinions about Economics | with Armin Falk

Coverage: VoxEU, LSE Impact blog, Ökonomenstimme (German), atlantico (French), briq news room

Short summary: We document economists' opinions about what is worth knowing and ask (i) which research objectives economic research should embrace and (ii) which topics it should study. Almost 10,000 economic researchers from all fields and ranks participated in our global survey. We find that economists' opinions are vastly heterogeneous. Most researchers are dissatisfied with the current research topics and objectives in economics. On average, respondents think that economic research should become more policy-relevant, multidisciplinary, risky and disruptive, and pursue more diverse topics. Dissatisfaction with the status quo is more prevalent among female scholars and associated with lower job satisfaction.

Misperceived Social Norms and Willingness to Act Against Climate Change | with Teodora Boneva, Felix Chopra, and Armin Falk

Coverage: Ökonomenstimme (German), briq news room (German)
IZA Award for Innovative Research on the Economics of Climate Change
Superseding an earlier version with the title "Fighting Climate Change: The Role of Norms, Preferences, and Moral Values".

Short summary: We document the individual willingness to act against climate change and study its behavioral determinants in a large representative sample of US adults. We document systematic misperceptions of social norms. Respondents vastly underestimate the prevalence of climate-friendly behaviors and norms among their fellow citizens. Correcting these misperceptions in an experiment causally raises the individual willingness to act against climate change as well as individual support for climate policies.