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Left-Digit Bias in Household Inflation Expectations

People often process numbers in simplified ways. One such simplification is left-digit bias, the tendency to give more weight to the leftmost digit of a number. We study whether this bias affects how households process inflation numbers when forming …

Inflation in the News: Numerical Precision, Sensational Framing, and Round-Number Effects

Bubble-Driven Business Cycles

Pronounced and persistent fluctuations in aggregate wealth and real activity - boom-bust episodes - have become more prevalent in recent history. In this paper, I provide a quantitative explanation for such boom-bust episodes based on rational …

Fiscal Autonomy and Fiscal Sustainability: Subnational Taxation and Public Indebtedness in Contemporary Spain

This study assesses fiscal sustainability in contemporary Spain at the regional level. Spain consists of 17 autonomous regions, two fiscal regimes differing in taxing autonomy, and two path-dependent types of communities with more and less …