1. Household Finance: One of the trips keeping me busy was to Mexico City for the PRONAFIM conference. Here's a video version of my current thinking on household finance, in Spanish. Of course, one of the key questions in household finance is to what extent a household is a household. I've had a hard time not thinking about this recent paper from Afzal et al, which through a series of "lab in the field" experiments, shows there are a lot of schisms in the household. Let me just quote from the abstract: "Subjects are often no better at guessing their spouse's preferences than those of a stranger, and many subjects disregard what they believe or know about others' preferences when assigning them a consumption bundle." Is there some explanation there for the puzzle in the Graphic of the Week (see below?). In the household finance realm I often pick on financial literacy--specifically as a bellweather for evidenced-based policy (if money is going into financial literacy, evidence isn't making a dent on policy). Here's some interesting new evidence on financial literacy and why it doesn't seem to work, from Carpena and Zia. They are looking for what parts of financial education might affect behavior, and find attitudes matter more than awareness or numeracy. I feel like that connects to this new paper from Gine and Goldberg documenting endowment effects in account choice in Malawi, and that the endowment effect can be overcome with experience, but maybe not.
2. Inequality: Teaching a class on wealth inequality and policy makes anything on the topic grab my attention just a bit more. And there is a lot out there. On the downside, there's a lot out there and my attention is drawn to all of it. Here's a handy Twitter thread guide (and in a perhaps easier to follow/read format) to the global inequality literature that I found very helpful. Here's a new paper from Ayyagari, Demirguc-Kunt and Maksimovic calling into question the idea that a group of "star" firms are pulling away from others and boosting inequality. You probably already know about this, but the Chetty team has published their Opportunity Atlas. And here's a recent paper from Card et al. on the role of school quality in transmitting economic inequality in the US during the 20th century (in digest form here).
3. Our Algorithmic Overlords: Nothing particular profound here but I couldn't resist pairing these two pieces together: a) "China’s brightest children are being recruited to develop AI ‘killer bots’" and b) A list of artificial intelligence programs that do "what their creators specify, not what they mean." I suppose since the actions of the AI programs sound a lot like children trying to annoy their parents, China's approach seems optimal?