April 9, 2016 ~ 7th NYU Search Theory WorkshopOn April 9, 2016, NYU hosted the 7th Search Theory Workshop. The conference was generously funded by the C.V. Starr Center for Applied Economics. The program committee was formed by Katarina Borovickova, Boyan Jovanovic, Edouard Schaal, Venky Venkateswaran, Gianluca Violante and Basil Williams. The conference was organized around search in financial and labor markets. This time we gave an emphasis on papers with empirical applications. Nicholas Trachter (Richmond Fed) introduced a novel model of price dispersion where firms understand the trade-off between increasing the price of their products and losing their customers. This additional feature helps us understand cyclicality of markups and price dispersion. Christian Moser (Princeton) presented a puzzling fact: while in many countries income inequality is growing, Brazil has experienced a large decline. He shows that almost 70 percent of this decline can be attributed to a massive increase in the minimum wage. Mi Luo (NYU) explained how college debt affects labor market decisions of college graduates: a higher debt leads college graduates to take jobs with higher wages but with job satisfaction. Johannes Wieland (UC San Diego) developed a new empirical methodology to isolate business cycle reallocation from the secular labor reallocation. Applying this methodology to the U.S. data revealed an asymmetric effect where reallocation contributes to worse employment outcomes during recessions but not during expansions. Susan Vroman (Georgetown University) noticed that many job openings advertised in job website continue to exist even after the position has been filled which creates “phantom” vacancies. This generates a negative externality on job searchers who spend time applying to non-existing job openings. The careful selection of papers was rewarded by a high attendance. Besides many NYU faculty and students, we also had participants from nearby universities and Federal Reserve Banks. We had lively discussions during presentations as well as breaks. As in the past, we welcomed presentations from young scholars, including our own PhD student.
October 10, 2015 ~ 6th NYU Search Theory WorkshopOn October 10, 2015, NYU hosted the 6th Search Theory Workshop. The conference was generously funded by the C.V. Starr Center for Applied Economics. The program committee was formed by Katarina Borovickova, Boyan Jovanovic, Ricardo Lagos, Edouard Schaal, Gianluca Violante, Venky Venkateswaran and Basil Williams. The conference featured two papers on search in the labor market, two papers on search in the financial market and one was an application of search in international trade. Simeon Alder (University of Notre Dame) opened the conference with presenting an assignment model where worker’s ability is a complementarity with firm’s type. He used a rich data on firms’ profits and workers’ wages to estimate the degree of this complementarity. Rasmus Lentz (University of Wisconsin - Madison) analyzed a model of human capital accumulation via training in a frictional labor market with on the job search and heterogenous firms. The rich structure delivered several new insights, including that training is decreasing in the extent of the labor market frictions. Gregor Jarosch (Princeton) studied a model of asset trading where agents differ in their tastes for assets as well as frequency at which they meet other traders. He demonstrated that fast traders endogenously arise as intermediaries, and that their existence might be welfare-improving. In the field of asset trading, Ali Shourideh (Wharton) presented an environment which suffered from adverse selection and featured imperfect competition. A novel insight which emerged from the analysis is that increasing competition is not always welfare-improving, especially when market power is not sufficiently concentrated or the adverse selection is not very severe. Finally, Oleg Itskhoki (Princeton) revisited a question of how trade liberalization affects firms with different productivities. He showed that after opening to trade, not all low productivity firms exit the market as would be intuitive, which crowds out the entry of new high productivity firms.
April 4, 2015 ~ 5th NYU Search Theory WorkshopOn April 4, 2015, The CV Starr Center for Applied Economics at NYU hosted the 5th Search Theory Workshop. The program committee was formed by Katarina Borovickova, Boyan Jovanovic, Ricardo Lagos, Ilse Lindenlaub, Edouard Schaal, Venky Venkateswaran, and Gianluca Violante. The conference brought together researchers in macroeconomics interested in the interaction among financial frictions, heterogeneity and search frictions. Yasser Boualam (University of Pennsylvania) presented a general equilibrium theory of bank lending relationships in an economy subject to search frictions and limited enforceability. Peter Norman (UNC) introduced a framework for studying interactions between finite number of buyers and sellers. Simon Mongey (NYU) explained how financial shocks and recruiting intensity affect labor market dynamics. Ben Lester (Federal Reserve Bank of Philadelphia) provided insights into how heterogeneity in investors’ asset valuations interacts with search frictions. Shouyong Shi (Penn State) examined how market conditions affect markups and frequency of trade in a model with customer relationships. The conference was well attended. Faculty and students from NYU and nearby universities engaged in stimulating discussions both during the presentations and informal breaks. The workshop welcomed presentations from young scholars: among the five presentations, one was by an NYU PhD student and one by a PhD candidate who recently accepted a position as an assistant professor.
Photo credit: Leo Sorel (NYU Photo Bureau)