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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
2014

Prior test scores do not provide valid placebo tests of teacher switching research designs

Author
Chetty, Raj, John N. Friedman, and Jonah Rockoff

Chetty, Friedman, and Rockoff (2014)[CFR] evaluate the degree of bias in teacher value-added (VA) estimates using a “teacher switching” research design, regressing changes in mean test scores across cohorts on changes in mean teacher VA. Recent studies (Kane, Staiger, and Bacher-Hicks 2014, Rothstein 2014) have found that regressing changes in mean scores in the prior grade on changes in mean VA also yields a positive coefficient, a result we confirm in our data.

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Type
Journal Article
Date
2014
Journal
Journal of Consumer Research

Brand Tourists: How Core Users Enhance the Brand Image by Eliciting Pride

Author
Bellezza, Silvia and Anat Keinan

This research examines how core consumers of selective brands react when core users obtain access to the brand. Contrary to the view that non-core users and downward brand extensions pose a threat to the brand, this work investigates the conditions under which these non-core users enhance rather than dilute the brand image.

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Type
Journal Article
Date
2014
Journal
Journal of Consumer Research

Something to Chew On: The Effects of Oral Haptics on Mastication, Orosensory Association, and Calorie Estimation

Author
Biswas, Dipayan, Courtney Szocs, Aradhna Krishna, and Donald Lehmann

This research examines how oral haptics (due to hardness/softness or roughness/smoothness) related to foods influence mastication (i.e., degree of chewing) and orosensory perception (i.e., orally perceived fattiness), which in turn influence calorie estimation, subsequent food choices, and overall consumption volume. The results of five experimental studies show that, consistent with theories related to mastication and orosensory perception, oral haptics related to soft (vs. hard) and smooth (vs. rough) foods lead to higher calorie estimations.

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Type
Journal Article
Date
2014
Journal
Annual Review of Economics

Teacher Effects and Teacher-Related Policies

Author
Jackson, C. Kirabo, Jonah Rockoff, and Douglas Staiger

The emergence of large longitudinal datasets linking students to teachers has led to an explosion in the study of teacher effects on student outcomes by economists over the last decade. One large literature has documented wide variation in teacher effectiveness that is not well explained by observable student or teacher characteristics. A second literature has investigated how educational outcomes might be improved by leveraging teacher effectiveness, through processes of recruitment, assignment, compensation, evaluation, promotion, and retention.

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Type
Journal Article
Date
2014
Journal
Journal of Consumer Research

The experience versus the expectations of power: A recipe for altering the effects of power on behavior

Author
Rucker, Derek D., M. Hu, and Adam Galinsky

Power transforms consumer behavior. This research introduces a critical theoretical moderator of power's effects by promoting the idea that power is accompanied by both an experience (how it feels to have or lack power) and expectations (schemas and scripts as to how those with or without power behave). In some cases, the psychological experience of power predisposes people to behave one way, whereas attention to the expectations of power suggests behaving in another way. As a consequence, power's effects for consumer behavior can hinge on consumers' focus.

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