Ludwig Straub, Harvard University
"Demand Networks: Theory and Measurement in Denmark"
We analyze the propagation of demand shocks and policies in a “demand network”: an economy with (a) many sectors connected by input-output linkages; (b) heterogeneous agents with heterogeneity in preferences and labor supply and subject to credit constraints; and (c) nominal rigidities. We calibrate the model using administrative data linked with credit card transactions from Denmark. We find that the general equilibrium effects of shocks crucially depend on their regional and sectoral origins; that even aggregate shocks have highly unequal effects; and that shocks are best offset by targeted fiscal interventions. We apply our theory to the Great Recession, finding that targeted fiscal interventions are 30-60% cheaper than untargeted ones, for the same employment gain.
Ludwig Straub is an assistant professor of economics. His research focuses on macroeconomics and international economics. Ludwig received his Ph.D. in economics from MIT in 2018 and holds undergraduate and master’s degrees in mathematics and physics.
CEBI contact: Niels Johannesen