Working papers

Abstract: This short paper presents a method for teaching the impact of an oil shock on marginal costs. It derives marginal costs from a basic production function with capital, labor and material inputs. An oil shock affects the price of the material input. Based on the derived structure of marginal costs, teaching an oil shock and its aggregate implications becomes intuitive. As oil shocks have proven recurring, while their relationship with recessions has proven strong, the paper offers some useful economics pedagogy applications. Some of them could resonate with the heightened environmental salience among economics undergraduates.

Under review at the Journal of Economics Teaching

Abstract: The use of Generative Artificial Intelligence (Gen AI) in economics classrooms has the potential to both improve learning-democratizing education, personalizing tutoring, and summarizing content-as well as harm it-reducing student effort, offloading critical thinking, and encouraging cheating. It thus behooves instructors to understand how Gen AI is used in their classes. To that end, we design comprehensive surveys on the use of Gen AI by both economics instructors and their students. Surveys are completed at the start and end of the 2025 Spring semester and provide a snapshot of perceptions, policies, and usage of Gen AI tools. Based on our results, we find a disconnect between instructor Gen AI policies and student perceptions of those policies. This implies the need for better communication. In addition, survey results show how students use Gen AI to help with both studying and completing assignments. While sentiment about usage of Gen AI for studying aligns between instructors and students, more instructor guidance in how best to use Gen AI for learning is recommended. Unsurprisingly, we find divergence between instructor and student sentiment regarding the use of Gen AI for completing assignment.

Available here

Under review at the J Economic Education

Abstract: This paper investigates the academic mindset of economics students across eight countries using a large-scale dataset collected through the Economic Education Network for Experiments (EENE) in 2023/24 and 2024/25. Surveys from 1,188 students and 14 instructors across 18 modules at 11 universities outside the US, measured four dimensions of academic mindset, including belonging, self-efficacy, growth mindset, and perceived relevance, both at the start and end of a teaching term. We find that students’ mindsets are dynamic and context-dependent rather than uniformly improving over time. While perceptions of belonging within economics and the discipline’s relevance tended to increase, general self-efficacy and beliefs about the accessibility of economics declined. Gender consistently emerged as a major source of heterogeneity: non-male students reported lower confidence, weaker growth mindset beliefs, and less perceived relevance of economics, with gaps often persisting or widening by term’s end, especially in Germany and New Zealand. Pedagogical context also mattered: active learning environments and intermediate-level courses were positively associated with mindset outcomes, while larger institutions and later academic years showed negative associations. Cross-national variation was substantial, with German students reporting consistently lower scores across measures. These results highlight that student confidence and identification with economics are shaped not only by individual characteristics but also by pedagogical practice and institutional culture. The findings point to the importance of inclusive, interactive teaching and culturally sensitive interventions to support diverse participation in economics education worldwide.

R&R at Int. Rev. of Economics Education

Abstract: We study how populist governance has affected sovereign yields in Europe since 1960. Using fixed effects and synthetic control methods (SCMs), we find comprehensive evidence that bond markets impose a populist risk premium, which we define as an increase in sovereign yields in periods of populist governance. We also show that the populist risk premium (PRP) varies across the term structure of bond yields and the ideological position of the incumbent populist. While short-term yields seem unaffected, the longer end of the yield curve sees a positive PRP, particularly for left-wing populists. SCMs confirm the substantial heterogeneity in the PRP across the term structure, as do several robustness checks. This is consistent with recent evidence of a lasting impact of populist governance on income levels, triggering substantial long-term fiscal risks. There are two primary mechanisms underlying the observed heterogeneity in the PRP: fiscal and monetary policy convergence in Europe, and stronger internal constraints on executive power relative to those in South and North America. 

Abstract: We estimate the effects of California’s cap-and-trade program (CCTP) on the greenhouse gas (GHG) emissions of California’s manufacturing, waste, and electricity-generation (EG) sectors 8 years after the programme has taken effect. We also estimate its effects on California’s relative change in carbon intensity of its thermal EG plants and renewable-energy’s share of total electricity generated. Using a difference-in-differences approach, we are unable to identify a reduction of GHG emissions of California’s affected manufacturing plants relative to the closely matched control group of facilities in other states, although we do find a 12.5% abatement effect on California’s waste sector. In addition, we estimate higher CO₂ emissions and carbon-intensity of its EG sector relative to that of the control group of states. Contrary to theory predictions, our evidence suggests that the first 8 years of the CCTP were largely ineffective in delivering a simultaneously low-cost and accelerating path to industrial net zero. Therefore, while alternatives exist and changes to the scheme might yield results in the future, the CCTP does not offer a convincing blueprint for industrial net zero policies thus far.

Supplementary material (data and code) here

Abstract: We build a theory of politically optimal environmental regulations and test its predictions using a new individual-level data set of climate reform votes in the European Parliament (EP). This informs the most comprehensive analysis to date of how Members of the European Parliament (MEPs) differ in their legislative support for climate reforms. In line with the theory, we find that ideological polarisation among MEPs does not follow a traditional left-right divide. Instead, MEPs at the ideological extremes appear similarly averse to pro-climate measures, while the political centre emerges as the strongest advocate for climate reforms. The apparent extreme convergence against centrist compromises emerges naturally from the theory. However, it does not imply a shared aversion to climate reforms by the ideological extremes. We discuss several mechanisms that may generate these results. Our results identify legislator profiles likely to advance climate reforms in the EP, and they are mostly found in the ideological centre. 

Under review at The European J of Political Economy 

Supplementary data and code here

Abstract: I discuss politically optimal restrictions on citizen movement in a pandemic. To find the political equilibrium, a standard voter preference framework is extended with features of a society where citizens make choices under pandemic conditions. Specifically, their vaccine choice is endogenous and they are vaccine-hesitant, they do not readily comply with restrictions, lockdowns tax their available time for work and leisure, and access to vaccines is unequal. Citizens also vote for their preferred level of restrictions. In a median-voter equilibrium, the majority will choose zero restrictions, unless the government offers some positive income support, or a subsidy, which depends on the severity of restrictions. Voters will tolerate harder restrictions when the subsidy grows. The minimum subsidy and additional conditions for existence of a majority support for non-zero restrictions are discussed. Large-scale evidence using Google's citizen mobility data from the COVID-19 pandemic supports the theory. A set of policy implications completes the analysis, which could help governments build political support for their planned containment measures in future pandemics.

Supplementary material (+ replication package) here.

R&R at the European Journal of Political Economy