Showing results 1 - 4 of 4
| Gabriel Chodorow-Reich
April 2021, Paper: "We provide evidence of the stock market wealth effect on consumption by using a local labor market analysis and regional heterogeneity in stock market wealth. An increase in local stock wealth driven by aggregate stock prices increases local employment and payroll in nontradable industries and in total, while having no effect on employment in tradable industries. In a model with consumption wealth effects and geographic…
| Gabriel Chodorow-Reich
September 2020, Paper: "Using loan-level data covering two-thirds of all corporate loans from U.S. banks, we document that SMEs (i) obtain much shorter maturity credit lines than large firms; (ii) have less active maturity management and therefore frequently have expiring credit; (iii) post more collateral on both credit lines and term loans; (iv) have higher utilization rates in normal times; and (v) pay higher spreads, even conditional on…
| Gabriel Chodorow-Reich
August 25, 2020, Video: "In November 2016, India’s prime minister announced that all bills over 500 rupees were demonetized in an attempt to fight corruption. As a result, 86% of India’s currency disappeared overnight! Harvard’s Gabriel Chodorow-Reich and his coauthors took advantage of this sudden natural experiment to examine the role of money in modern economies. Different districts of India took different approaches to demonetization—some…
| Gabriel Chodorow-Reich
Cash and the Economy: Evidence from India's Demonetization. Gita Gopinath, Gabriel Chodorow-Reich, December 13, 2018, Paper, "We analyze a unique episode in the history of monetary economics, the 2016 Indian ``demonetization.'' This policy made 86% of cash in circulation illegal tender overnight, with new notes gradually introduced over the next several months. We present a model of demonetization where agents hold cash both to satisfy a cash-in…