Simon Galle

You should quit social media for good Platforms optimized for engagement warp our politics, erode attention, and harm our wellbeing. Here’s how I minimize time on the (anti‑)social web.

Today is one of those days when I should have taken my own advice. Flooded with rage tweets on the other platform. Garbage way to communicate that only brings out the worst in people. All dunks, no conversation. Complete waste of time trying to engage there www.gelliottmorris.com/p/you-should...

Market statistics from EconJobMarket.org.

Good thing there's Europe.

This paper shows: the 2022 energy crisis led to record global profits for fossil fuel companies. The US gained the most, with claims on US$301 billion, exceeding its US$267 billion investment in low-carbon energy. Half of profits went to the top1%, mainly through stock ownership

Handelshøyskolen BI Programområdet - Doktorgrad - PhD Candidate in Economics PhD Candidate in Economics

BI is hiring PhD candidates in economics.

We offer:
- a friendly and collegial department
- strong faculty support during your PhD
- access to very rich Norwegian microdata
- a competitive salary
- a strong track record in PhD placements.

Please share #EconSky 🙏🙏

bi.easycruit.com/vacancy/3539...

an experience I think about a lot: I was visiting a class in DC Jail shortly after Kim Kardashian visited and had brought in her camera team. I relayed critiques of her "performative", "virtue signalling" acts I had heard on the outside. the response was somewhere between a shrug and an eye roll

De #Nobelprijs #Economie ligt onder vuur. Critici stellen dat de prijs een misleidende autoriteit verleent aan een discipline die vaak ideologisch gekleurd is.

Lees het antwoord van prof. @simongalle.bsky.social (BI Norwegian Business School).

👉 www.tijdschriftkarakter.be/de-nobelprij...

One obvious part of Europe's Trump handling is not to give too much weight to each individual utterance, but to stop the US going completely off the rails. In the absence of a domestic version, arguably even "the adults in the room"

YouTube video by drMandinga Ain't Got No, I Got Life - Nina Simone

music.youtube.com/watch?v=L5jI...

Extremely useful resource.

Handelshøyskolen BI Programområdet - Doktorgrad - PhD Candidate in Economics PhD Candidate in Economics

BI is hiring PhD candidates in economics.

We offer:
- a friendly and collegial department
- strong faculty support during your PhD
- access to very rich Norwegian microdata
- a competitive salary
- a strong track record in PhD placements.

Please share #EconSky 🙏🙏

bi.easycruit.com/vacancy/3539...

This matter-of-fact letter is straightforward and non-partisan.

It is more informative on the "Trump vs. Cook" case than most of the press coverage I have seen about it.

Researcher who has distorted voter data appointed to Homeland Security election integrity role Heather Honey, a conservative election researcher, was appointed to the new role amid Trump's push to restructure how elections are run.

"Researcher who has distorted voter data appointed to Homeland Security election integrity role" www.nbcnews.com/politics/tru...

Moody’s chief economist says some states are in recession Moody’s chief economist Mark Zandi placed blame on high tariffs and “restrictive” immigration policies for the economy’s downturn

#NumbersDay
qz.com/moodys-chief...

Trump “fires” Lisa Cook, escalating his war on the Federal Reserve There is little precedent: no Fed governor has been dismissed for cause before

There is little precedent: no Fed governor has been dismissed for cause before

"Dag na dag ontvouwt zich in Gaza een van de grootste en grofste misdaden tegen de menselijkheid van onze tijd...

De waarheid is dat Europa wel degelijk hefbomen heeft om Israël onder druk te zetten om dit bloedvergieten te stoppen en zijn doelstellingen aan de onderhandelingstafel te bereiken."

I was already an adult when I first heard that the French and the British continued their blockade of Germany after the armistice of 11 November 1918 until the Treaty of Versailles was signed, and that this lead to hundreds of thousands of death from starvation. I remained convinced that this /

After a remarkable stretch when wage inequality fell substantially, wage growth at the bottom is now once again falling behind growth at the top.

This is bad news for working class Americans.

t.co/1hp5EE9up5

Wow, weak July #jobsreport. Headline a touch softer than expectations, but real surprise is huge downward revisions to May & June.

-Payrolls grew just 73,000, below expectations
-Surprisingly large downward revisions to May (+144k to +19k) and Jun (+147k to +14k)
-Unemp up to 4.2%

#NumbersDay 1/

Please submit your papers to the series!

#EconSky #UkrainianView #Ukraine

The big question for LLM’s is not “will they revolutionize life” or “will they take our jobs?” It’s “who will benefit and who will lose.” It’s a very tricky question, and this paper is a careful attempt to work out the subtle mechanisms. Spoiler: Most of the cost is borne by white-collar types.

At least I've learned a lot from writing this paper.

Colleagues have also recommended its pedagogical qualities, so hopefully it's insightful for others as well.

Thanks for reading.🙏

Granted, the ideas in our analysis are not novel.

In my view, our contribution lies in integrating these fundamental forces on the labor demand and labor supply side in an elegant, concise, and transparent framework.

Example: administrative assistants may be displaced from their job due to AI. Whether that affects their eventual wage outcomes, depends on how transferable their skills are to other jobs.

Second, the reallocation elasticity (kappa) regulates the magnitude of the wage changes.

When labor reallocation is very elastic, differences in equilibrium wage changes are small.

When labor reallocation is inelastic, we get the highest possible wage differences.

Example: AI may take over (some) coding tasks, but demand for programmers may still increase if the increase in overall demand for IT services offsets the decline in programmer demand for a given IT output.

Note that when machines substitute workers in production (sigma >1), the wage impact for workers can still be positive if there is a sufficiently strong response in final demand.

First, (sigma - psi), the difference between the input substitution and final demand elasticities, regulate whether workers and machines are gross substitutes or complements and thereby the sign of the wage changes.

The model has 3 key elasticities: the input substitution elasticity (sigma), the final demand elasticity (psi), and the labor reallocation elasticity (kappa).

Proposition 1 explains how cost shocks translate into wage changes as a function of these three elasticities.

Referees have so far compared the first paper of our paper to a "textbook exposition." Since our type of model is underutilized in economics, I'll take that as a complement :).

New version of our paper "The Labor Market Impact of Technical Change: Inspecting the Mechanisms," with F. Carpena.

www.ocf.berkeley.edu/~sgalle/wp-c...

We present a stylized, tractable model on how occupation-specific technical change affects the wage distribution.
#EconSky