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Economics Insights @ CBS

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Economics Articles

GDP is an imperfect measure. Combining it with other indicators like labor market data makes it a little more informative, says Professor Veldkamp.
Economics and Policy

Is the U.S. in Recession? CBS Experts Weigh in on the Economic Outlook

New data has sparked a debate about the state of the economy. Here’s what some of our faculty members had to say.

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Economics Research

Inflation and the User Cost of Capital: Does Inflation Still Matter?

Authors
Darrel Cohen, Kevin Hassett, and R. Glenn Hubbard
Date
January 1, 1999
Format
Chapter
Book
The Costs and Benefits of Price Stability
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Firm Leverage, Consumer Demand, and Unemployment during the Great Recession

Authors
Xavier Giroud and Holger Mueller
Date
February 1, 2017
Format
Journal Article
Journal
The Quarterly Journal of Economics
We argue that firms' balance sheets were instrumental in the propagation of consumer demand shocks during the Great Recession. Using establishment-level data, we show that establishments of more highly levered firms exhibit a significantly larger decline in employment in response to a drop in consumer demand. These results are not driven by firms being less productive, having expanded too much prior to the Great Recession, or being generally more sensitive to fluctuations in either aggregate employment or house prices.
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An Economic Assessment of 'Fair Trade' in Coffee

Authors
David Zehner
Date
January 1, 2006
Format
Newspaper/Magazine Article
Publication
Chazen Web Journal of International Business
The price of coffee plunged by more than 50 percent between 1997 and 2001, driving millions of growers into poverty. Fair Trade is a much-heralded micro-economic response that allows coffee-producing cooperatives to sell directly to importers and roasters in the consuming countries, bypassing the customary network of middlemen in their own countries. Consumers of Fair Trade coffee typically pay a premium, and cooperatives are guaranteed a floor price. In this paper, the author argues that Fair Trade is unlikely to improve growers????????????
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Improving Labor Productivity: Human Resource Management Policies Do Matter

Authors
Marianne Koch
Date
May 1, 1996
Format
Journal Article
Journal
Strategic Management Journal
Despite the consistency with which the theoretical and normative connections between human resource management practices and firm-level performance outcomes are made, empirical studies that link the two are sparse. This paper presents results from a study of 319 business units that addresses this gap. Hypotheses are derived from a resource-based perspective on strategy. Positive and significant effects on labor productivity are found for organizations that utilize more sophisticated human resource planning, recruitment, and selection strategies.
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Competition and Competitiveness in a New Economy

Authors
Joseph Stiglitz
Date
January 1, 2002
Format
Chapter
Book
Competition and Competitiveness in a New Economy

There is perhaps no topic that is more important for the functioning of a market economy than competition policy. The theorems and analyses stating that market economies deliver benefits in the form of higher living standards and lower prices are all based on the assumption that there is effective competition in the market. At the same time when Adam Smith emphasised that competitive markets deliver enormous benefits, he also emphasised the tendency of firms to suppress competition.

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Economics Faculty

In the News

Insider
March 26, 2022

Cutting Russia out of the Global Economy Means Higher Prices, a Slower Recovery, and a Whole New Global Power Structure: 'We Don't Really Have a Playbook for How This Might Work'

Highlighted by Columbia Business School, this media piece showcases Topics and Areas of Expertise about our esteemed faculty. The content is specifically curated from the publication that showcased the mentioned faculty and/or research, emphasizing its contributions in various fields. The featured Topics and Areas of Expertise reflects the school's commitment to sharing valuable insights and knowledge.

Mentioned Faculty

Politico
July 4, 2022

No More Whispers: Recession Talk Surges in Washington

Highlighted by Columbia Business School, this media piece showcases Topics and Areas of Expertise about our esteemed faculty. The content is specifically curated from the publication that showcased the mentioned faculty and/or research, emphasizing its contributions in various fields. The featured Topics and Areas of Expertise reflects the school's commitment to sharing valuable insights and knowledge.

Mentioned Faculty

Columbia Business School

Charles Calomiris

Henry Kaufman Professor Emeritus of Financial Institutions in the Faculty of Business and Professor Emeritus of International and Public Affairs
Finance Division
The Financial Times
January 10, 2022

The Flaws in the Fed's Approach to Inflation

Highlighted by Columbia Business School, this media piece showcases Topics and Areas of Expertise about our esteemed faculty. The content is specifically curated from the publication that showcased the mentioned faculty and/or research, emphasizing its contributions in various fields. The featured Topics and Areas of Expertise reflects the school's commitment to sharing valuable insights and knowledge.

Mentioned Faculty

Frederic Mishkin

Frederic Mishkin

Alfred Lerner Professor of Banking and Financial Institutions
Economics Division
Marketplace Radio
November 1, 2021

Our Feelings about Jobs and the Economy Have Parted Ways

Highlighted by Columbia Business School, this media piece showcases Topics and Areas of Expertise about our esteemed faculty. The content is specifically curated from the publication that showcased the mentioned faculty and/or research, emphasizing its contributions in various fields. The featured Topics and Areas of Expertise reflects the school's commitment to sharing valuable insights and knowledge.

Mentioned Faculty

Laura Veldkamp

Laura Veldkamp

Leon G. Cooperman Professor of Finance & Economics
Finance Division

More in Economics

Professor Abby Joseph Cohen
Asset Management, Capital Markets and Investments, Economics and Policy

Trump’s Tariffs and Market Chaos: Abby Joseph Cohen Shares What Investors Need To Know

The veteran economist and CBS professor joined Professor Brett House to explore how erratic policymaking, rising tariffs, and politicized institutions are shaking global confidence in the U.S. economy.

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McKinsey’s Eric Kutcher on AI, Management Strategy, and Climate Innovation
Distinguished Speaker Series

McKinsey’s Eric Kutcher on AI, Management Strategy, and Climate Innovation

During a recent Distinguished Speakers Series event, the Senior Partner and Chair of North America at McKinsey shared leadership insights on AI business strategy, climate innovation, and the future of work.

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How Trump’s Tariffs are Threatening Global Economic Stability
Economics and Policy, Faculty Views, World Business

How Trump’s Tariffs are Threatening Global Economic Stability

Insights from Columbia Business School faculty explain how the president’s “Liberation Day” tariffs are fueling market volatility, undermining global economic stability, and impacting the Fed's ability to lower interest rates.

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When Economic Struggles Foster Self-Interest, Not Universal Compassion
Business and Society, Economics and Policy, Globalization, Management, Social Impact

When Economic Struggles Foster Self-Interest, Not Universal Compassion

A Columbia Business School study shows that experiencing a recession in young adulthood leads to lasting support for wealth redistribution—but mostly for one’s own group.

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Type
Journal Article
Date
2015

The Truth Hurts: How Customers May Lose from Honest Advertising

Author
Kopalle, Praveen and Donald Lehmann
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Type
Journal Article
Date
2015
Journal
Journal of Marketing

Improving Online Idea Generation Platforms and Customizing the Task Structure Based on Consumers' Domain-Specific Knowledge

Author
Luo, Lan and Olivier Toubia

The authors explore how firms can enhance consumer performance in online idea generation platforms. Most, if not all, online idea generation platforms offer all consumers identical tasks in which (1) participants are granted access to ideas from other participants and (2) ideas are classified into categories, but consumers can navigate freely across idea categories. The former is linked to stimulus ideas, and the latter may be viewed as a first step toward problem decomposition.

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Type
Journal Article
Date
2015

The Impact of Pharmaceutical Innovation on Premature Cancer Mortality in Canada, 2000-2011

Author
Lichtenberg, Frank

The premature cancer mortality rate has been declining in Canada, but there has been considerable variation in the rate of decline across cancer sites. I analyze the effect that pharmaceutical innovation had on premature cancer mortality in Canada during the period 2000-2011, by investigating whether the cancer sites that experienced more pharmaceutical innovation had larger declines in the premature mortality rate, controlling for changes in the incidence rate.

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Type
Journal Article
Date
2015
Journal
Marketing Letters

The New "Wave" in Studying Asian Consumers and Markets

Author
Schmitt, Bernd

I view the research articles presented here as prototypical examples of what may be called “the new wave” in studying Asian markets and consumers. This emerging “new wave” has a different focus than research done over the last few decades. Research is shifting from an emphasis on traditional Asian culture toward a focus on consumer culture and how this consumer culture manifests itself in various Asian markets. The “new wave” research also focuses less on general concepts and more on uniquely Asian phenomena. Finally, methodologically research is shifting from “East” vs.

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Type
Journal Article
Date
2015
Journal
Journal of Finance

Capital and Labor Reallocation within Firms

Author
Giroud, Xavier and Holger Mueller

We document how a positive shock to investment opportunities at one plant ("treated plant") spills over to other plants within the same firm, but only if the firm is financially constrained. To provide the treated plant with resources, the firm's headquarters withdraws capital and labor from other plants, especially plants that are relatively less productive, not part of the firm's core industries, and located far away from headquarters. As a result of the resource reallocation, aggregate firm-wide productivity increases.

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