Selected Research

Imitation Game: Rise of Central Bank Digital Currencies

This study investigates the macroeconomic implications of introducing a Central Bank Digital Currency (CBDC), specifically addressing potential valuation differences between digital and physical currencies.  The principal findings reveal a new monetary policy channel—the “CBDC valuation/remuneration channel.” This channel is influenced by the relative preference for CBDC, a preference shaped by underlying CBDC technology. Additionally, the preference for CBDC alters the dynamics of key macroeconomic variables, such as inflation output growth, and impacts the efficacy of established monetary policy tools. CBDCs enable the implementation of negative interest rate policies, potentially amplifying policy transmission below the zero lower bound.

Ch1_JMP_ImitationGame_012224.pdf

Mexican consumers’ attitudes towards irradiated and imported apples.

(with R. Karina Gallardo and Anuradha Prakash)

This study centers on analyzing Mexican consumers' willingness to pay (WTP) for imported U.S. fresh apples subjected to irradiation, contrasting it with the more prevalent postharvest chemical treatments. Our findings reveal that respondents are willing to pay less for apples treated with irradiation compared to untreated ones but more than apples treated with chemicals. The WTP for irradiation increases when respondents receive information about this technology from both the scientific and layperson narrative styles. Similar to findings in previous studies, WTP for irradiated food is affected by gender, age, income, family size, and level of education. 

The Labor Market Effects of State Versus Federal Changes in Unemployment Insurance

I investigate the impact of the extended benefits (EB) unemployment insurance program on labor market outcomes for unemployed individuals. This analysis differentiates between the State and Federal components of the program. It assesses changes in three labor market outcome measures: unemployment status, getting a job, or leaving the labor force. The primary findings indicate that during both recession and recovery periods, the availability of Federal EB reduces the likelihood of individuals experiencing changes in their unemployment status. This effect primarily results from a lower probability of individuals leaving the labor force, with no substantial impact on their employment prospects. On the other hand, the presence of State EB does not exhibit statistically significant effects on the likelihood of unemployment status changes in either period. These status changes do not significantly affect the probability of employment during the recession or recovery. However, there is a positive and significant effect on the likelihood of exiting the labor force, but this effect is observed only during the recovery period.