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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
2004
Journal
Personality and Social Psychology Bulletin

It's the Thought That Counts: On Perceiving How Helpers Decide to Lend a Hand

Author
Ames, Daniel, Francis Flynn, and Elke Weber

How do people react to those who have helped them? The authors propose that a recipient's evaluation of a helper's intentions and the recipient's own attitudes about future interactions with the helper depend partly on the recipient's perceptions of how the helper decided to assist: on the basis of affect, of role, or of cost-benefit calculation.

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Type
Journal Article
Date
2004
Journal
Games and Economic Behavior

Observational Learning Under Imperfect Information

Author
Kariv, Shachar
We explore Bayes-rational sequential decision making in a game with pure information externalities, where each decision maker observes only her predecessor's binary action. Under perfect information the martingale property of the stochastic learning process is used to establish convergence of beliefs and actions. Under imperfect information, in contrast, beliefs and actions cycle forever. However, despite the stochastic instability, over time the private information is ignored and decision makers become increasingly likely to imitate their predecessors.
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Type
Journal Article
Date
2004
Journal
Psychological Review

Predicting Risk Sensitivity in Humans and Lower Animals: Risk as Variance or Coefficient of Variation

Author
Weber, Elke, Sharoni Shafir, and Ann-Renée Blais
This article examines the statistical determinants of risk preference. In a meta-analysis of animal risk preference (foraging birds and insects), the coefficient of variation (CV), a measure of risk per unit of return, predicts choices far better than outcome variance, the risk measure of normative models. In a meta-analysis of human risk preference, the superiority of the CV over variance in predicting risk taking is not as strong.
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Type
Journal Article
Date
2004
Journal
Personality and Social Psychology Bulletin

Stereotype reactance at the bargaining table: The effect of stereotype activation and power on claiming and creating value

Author
Kray, L., J. Reb, Adam Galinsky, and Leigh Thompson

Two experiments explored the hypothesis that the impact of activating gender stereotypes on negotiated agreements in mixed-gender negotiations depends on the manner in which the stereotype is activated (explicitly vs. implicitly) and the content of the stereotype (linking negotiation performance to stereotypically male vs. stereotypically female traits). Specifically, two experiments investigated the generality and limits of stereotype reactance.

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Type
Journal Article
Date
2004
Journal
Naval Research Logistics

Dynamic inventory and pricing models for competing retailers

Author
Bernstein, Fernando and Awi Federgruen

We address infinite-horizon models for oligopolies with competing retailers under demand uncertainty. We characterize the equilibrium behavior which arises under simple wholesale pricing schemes. More specifically, we consider a periodic review, infinite-horizon model for a two-echelon system with a single supplier servicing a network of competing retailers. In every period, each retailer faces a random demand volume, the distribution of which depends on his own retail price as well as those charged by possibly all competing retailers.

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