The 21st century will see decreasing fertility rates, increasing longevity, and increasing college attainment. New research examines how the trend toward more college graduates could allow the government to decrease labor taxes.
Wages and expenditures increased substantially for the average household during the past two decades. At the same time, these gains were not distributed equally across households. Loukas Karabarbounis and Job Boerma develop a framework to account for divergent trends in the labor market.
Surveys of households and firms have become an important source of data on business owners and their activities. But how reliable is this data? Faculty Ellen McGrattan and Anmol Bhandari, with graduate students Serdar Birinci and Kurt See, address this question.
For nearly three generations, the United States and scores of other nations have prospered through trade governed by international rules. But in the last couple of years, University of Minnesota economist Tim Kehoe has watched with alarm as global trade pacts have come under attack by the Trump Administration. In a recent interview, Kehoe outlined the risks of a new era of America First trade policies.
University of Minnesota economist Manuel Amador studies what causes less-developed countries to pile on more debt than they can repay, what happens next, and the stakes the rest of the world have in the financial fitness of relatively small national economies.