Applied Microeconomics
Applied Microeconomics
The Applied Microeconomics research group unites researchers working on a broad array of topics within such areas as labour economics, economics of education, health economics, family economics, urban economics, environmental economics, and the economics of science and innovation. The group operates in close collaboration with the CAGE Research Centre.
The group participates in the CAGE seminar on Applied Economics, which runs weekly on Tuesdays at 2:15pm. Students and faculty members of the group present their ongoing work in two brown bag seminars, held weekly on Tuesdays and Wednesdays at 1pm. Students, in collaboration with faculty members, also organise a bi-weekly reading group in applied econometrics on Thursdays at 1pm. The group organises numerous events throughout the year, including the Research Away Day and several thematic workshops.
Our activities
Work in Progress seminars
Tuesdays and Wednesdays 1-2pm
Students and faculty members of the group present their work in progress in two brown bag seminars. See below for a detailed scheduled of speakers.
Applied Econometrics reading group
Thursdays (bi-weekly) 1-2pm
Organised by students in collaboration with faculty members. See the Events calendar below for further details
People
Academics
Academics associated with the Applied Microeconomics Group are:
Research Students
Events
CWIP Workshop - Peter Lambert (糖心TV)
Title: The Aggregate Consequences of Default Risk: Evidence from Firm-level Data
Authors: Tim Besley, Peter John Lambert, Isabelle Roland, John Van Reenen
Abstract: We examine the impact of firm-level default risk on aggregate economic performance. First, we develop a micro-to-macro model, and show that firms' perceived default risk serves as a sufficient statistic for credit frictions. We next use this model to quantify the impact of credit frictions, leveraging administrative data on the population of UK employer firms, augmented with a measure of default risk from S&Ps widely used algorithm. Between 2004-2019, credit frictions reduce aggregate output by up to 27%. This output gap due to frictions grew post-financial crisis and again after the Brexit vote. We compare partial and general equilibrium impacts, showing that approaches that abstract equilibrium wage rises significantly over-estimate output gains. Finally, reduced frictions and higher wages create both winners and losers across industries and firm-size groups, highlighting the redistributive role of the uneven access to credit.