@article{Snower, author = {Snower, Dennis}, title = {Das Digitale braucht neue Spielregeln}, series = {Tagesspiegel}, journal = {Tagesspiegel}, language = {de} } @article{Snower, author = {Snower, Dennis}, title = {Wir leben in einer großen, M{\"u}ll produzierenden Illusion}, series = {Die Zeit}, journal = {Die Zeit}, language = {de} } @article{SnowerKelly, author = {Snower, Dennis and Kelly, Colm}, title = {Recoupling Shareholders, Stakeholders and Society}, series = {Global Solutions Journal}, volume = {2021}, journal = {Global Solutions Journal}, number = {7}, pages = {12 -- 18}, language = {en} } @article{Snower, author = {Snower, Dennis}, title = {Don't save the economy. Change the economy}, series = {Politico}, journal = {Politico}, number = {19}, language = {en} } @techreport{Snower, type = {Working Paper}, author = {Snower, Dennis}, title = {The socioeconomics of pandemics policy}, edition = {GLOBAL ECONOMY \& DEVELOPMENT WORKING PAPER 138 | April 2020}, pages = {21}, abstract = {In response to the COVID-19 pandemic, governments around the world have provided a massive fiscal and monetary stimulus. While this policy is welcome in the short run, it does not address the underlying problem in the medium and long run. The reason is that the pandemic has not given rise to a generalized shortfall in aggregate demand. Rather, it has generated a Great Economic Mismatch, characterized by deficient demand for things requiring close physical interactions among people and deficient supply of things compatible with social distancing, where appropriate. Expansive macroeconomic policy can stimulate aggregate demand, but when social distancing is enforced, it will not stimulate production and consumption whenever this demand is satisfied through physically interactive activities. To overcome the Great Economic Mismatch, "readaptation policies" are called for. In the medium run, these policies promote a redirection of resources to activities compatible with social distancing; in the long run, these policies make economies more resilient to unforeseen shocks that generate a Great Economic Mismatch. Once the pandemic is over, a more profound rethinking of decisionmaking—in public policy, business and civil society—is called for. First, decisionmakers will need to supplement the current focus on economic efficiency with greater emphasis on economic resilience. Second, economic policies and business strategies will need to focus less on incentives for selfish individuals and more on the mobilization of people's prosocial motives. Finally, to encourage people around the world to cooperate globally in tackling global problems, policymakers at local, national and global levels will need to encourage people around the world to cooperate globally in tackling global problems, with the aid of two powerful tools that humans throughout history have used to coordinate their efforts: identity-shaping narratives and institutions of multi-level governance.}, language = {en} } @article{Snower, author = {Snower, Dennis}, title = {Awakening in the post-pandemic world}, series = {Future Development Blog - Brookings Institution}, journal = {Future Development Blog - Brookings Institution}, language = {en} } @article{Snower, author = {Snower, Dennis}, title = {The real economic fallout from Covid-19}, series = {Project Syndicate}, journal = {Project Syndicate}, language = {en} } @article{Snower, author = {Snower, Dennis}, title = {Die M{\"a}rkte haben versagt}, series = {Zeit Online}, journal = {Zeit Online}, language = {de} } @article{Snower, author = {Snower, Dennis}, title = {To ease the health-wealth trade-off, reallocate digital property rights}, series = {VoxEU}, volume = {2020}, journal = {VoxEU}, number = {June}, editor = {Vox, CEPR}, language = {en} } @article{Snower, author = {Snower, Dennis}, title = {Niedrige Zinsen sind der Grundstein f{\"u}r die n{\"a}chste Finanzkrise}, series = {Welt}, journal = {Welt}, language = {de} } @article{Snower, author = {Snower, Dennis}, title = {Was wirklich z{\"a}hlt}, series = {Die Zeit}, journal = {Die Zeit}, language = {de} } @article{SnowerBosworthSinger, author = {Snower, Dennis and Bosworth, Steven J. and Singer, Tania}, title = {Cooperation, Motivation and Social Balance}, series = {Journal of Economic Behavior \& Organization}, volume = {126}, journal = {Journal of Economic Behavior \& Organization}, number = {June 2016}, doi = {10.1016/j.jebo.2015.12.005}, pages = {72 -- 94}, abstract = {This paper examines the reflexive interplay between individual decisions and social forces to analyze the evolution of cooperation in the presence of "multi-directedness," whereby people's preferences depend on their psychological motives. People have access to multiple, discrete motives. Different motives may be activated by different social settings. Inter-individual differences in dispositional types affect the responsiveness of people's motives to their social settings. The evolution of these dispositional types is driven by changes in the frequencies of social settings. In this context, economic policies can influence economic decisions not merely by modifying incentives operating through given preferences, but also by influencing people's motives (thereby changing their preferences) and by changing the distribution of dispositional types in the population (thereby changing their motivational responsiveness to social settings).}, language = {en} } @article{SnowerAhrens, author = {Snower, Dennis and Ahrens, Steffen}, title = {Envy, Guilt, and the Phillips Curve}, series = {Journal of Economic Behavior \& Organization}, volume = {99}, journal = {Journal of Economic Behavior \& Organization}, number = {C}, pages = {69 -- 84}, abstract = {We incorporate inequity aversion into an otherwise standard New Keynesian dynamic equilibrium model with Calvo wage contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high incomes experience guilt. The former seek to raise their income, and the latter seek to reduce it. The greater the inflation rate, the greater the degree of wage dispersion under Calvo wage contracts, and thus the greater the degree of envy and guilt experienced by the workers. Since the envy effect is stronger than the guilt effect, according to the available empirical evidence, a rise in the inflation rate leads workers to supply more labor over the contract period, generating a significant positive long-run relation between inflation and output (and employment), for low inflation rates. This Phillips curve relation, together with an inefficient zero-inflation steady state, provides a rationale for a positive long-run inflation rate. Given standard calibrations, optimal monetary policy is associated with a long-run inflation rate around 2 percent.}, language = {en} } @article{SnowerGraham, author = {Snower, Dennis and Graham, Liam}, title = {Hyperbolic Discounting and Positive Optimal Inflation}, series = {Macroeconomic Dynamics}, volume = {17}, journal = {Macroeconomic Dynamics}, number = {3}, doi = {10.1017/S1365100511000393}, pages = {591 -- 620}, abstract = {The Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan, King, and Wolman [Review of Economic Studies 10 (4), 825-860] uses a richer model but still finds deflation optimal. In an otherwise standard New Keynesian model we show that, if households have hyperbolic discounting, small positive rates of inflation can be optimal. In our baseline calibration, the optimal rate of inflation is 2.1\% and remains positive across a wide range of calibrations.}, language = {en} } @article{Snower, author = {Snower, Dennis}, title = {A new societal contract}, series = {Economics: The Open-Access, Open-Assessment E-Journal}, volume = {2019-37}, journal = {Economics: The Open-Access, Open-Assessment E-Journal}, number = {13}, doi = {10.5018/economics-ejournal.ja.2019-37}, pages = {1 -- 13}, abstract = {This paper argues that the traditional social contract that underlies the free market economy has run its course and needs to be replaced by a new contract, based on a new conception of the "empowering economy." Whereas different social contracts are relevant to different societies, all these contracts have some features in common, addressing some basic human needs that are common to all. These are needs that every thriving society must satisfy. In the presence of current global problems - such as climate change and financial crises - satisfying these needs can also generate the popular approval for multilateral agreements to tackle these problems. The paper identifies three inconvenient truths for the existing social contract: (i) economic performance involves more than material prosperity, (ii) free markets naturally generate inequality, and (iii) human progress rests primarily on cooperation. In response, the paper proposes a new social contract that can be promoted through three policy approaches: (1) policy that focuses not just on material prosperity, but also on personal empowerment and social solidarity, (2) automatic stabilizers that reduce inequalities of economic power and (3) policy that develops the human capabilities of cooperation.}, language = {en} } @article{Snower, author = {Snower, Dennis}, title = {Toward Global Paradigm Change: Beyond the Crisis of the Liberal World Order}, series = {Economics: The Open-Access, Open-Assessment E-Journal}, volume = {13}, journal = {Economics: The Open-Access, Open-Assessment E-Journal}, number = {25}, doi = {10.5018/economics-ejournal.ja.2019-25}, pages = {19 -- 25}, abstract = {This paper may be summarized by the following points. First, the crisis of the liberal world order arises from a misalignment of our social, economic and political domains of activity, along with a resulting destabilization of our physical environment. The integration of the global economy has generated problems that extend beyond our current bounds of social and political cooperation. Second, extending our social cooperation - on which basis our political cooperation can be extended as well - requires the creation of the appropriate moral narratives. These narratives must guide business strategies, public policies and civic activities. Third, these narratives must be supplemented by multilevel governance structures that address challenges at the scale - micro, meso and macro - at which these challenges arise. Finally, past human experience in developing moral narratives, supported by multilevel governance structures, suggests guidelines for a future form of multilateralism that enables us to meet this challenge.}, language = {en} } @article{Snower, author = {Snower, Dennis}, title = {The G20 at a crossroads: the future of global governance}, series = {Economics: The Open-Access, Open-Assessment E-Journal}, volume = {12}, journal = {Economics: The Open-Access, Open-Assessment E-Journal}, number = {21}, pages = {1 -- 12}, language = {en} } @article{Snower, author = {Snower, Dennis}, title = {Beyond capital and wealth}, series = {Economics: The Open-Access, Open-Assessment E-Journal}, volume = {12}, journal = {Economics: The Open-Access, Open-Assessment E-Journal}, number = {21}, doi = {10.5018/economics-ejournal.ja.2018-21}, pages = {1 -- 10}, abstract = {The world is economically integrated, but socially fragmented. Thus economic progress can become decoupled from social progress. As long as social progress is closely linked to and flows from economic progress, it is appropriate for government to focus attention on economic policy to promote economic growth. Indeed, for at least the first four decades of the postwar period, there are good reasons to believe that this was broadly the case for most developed economies. Then, starting in the 1980s and accelerating after the financial crisis of 2008, we argue that social progress in these countries became progressively decoupled from economic progress. The result has been the phenomenon of misery in the midst of plenty: despite continued economic growth, we witness rising dissatisfaction among large segments of the public, declining trust in most public and private institutions, rising nationalism and populism, rising discontent with globalization, increasing unwillingness to accept migrants and refugees, and growing ethnic and religious conflicts. This paper argues that the prevailing thinking about government policy is an outgrowth of the Age of Coupling. In the Age of Decoupling, however, a radically different approach to government policy is required, one that focuses not just on material wellbeing and its distribution, but also on promoting people's sense of empowerment and social solidarity.}, language = {en} } @article{SnowerBrownMerkl, author = {Snower, Dennis and Brown, Alessio and Merkl, Christian}, title = {Globalization and the Welfare State}, series = {Journal of Economic Literature}, volume = {47}, journal = {Journal of Economic Literature}, doi = {10.1257/jel.47.1.136}, pages = {136 -- 158}, language = {en} } @article{BrownMerklSnower, author = {Brown, Alessio and Merkl, Christian and Snower, Dennis}, title = {In Incentive Theory of Matching}, series = {Macroeconomic Dynamics}, volume = {19}, journal = {Macroeconomic Dynamics}, number = {3}, doi = {10.1017/S1365100513000527}, pages = {643 -- 668}, abstract = {This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are heterogeneous variations in the characteristics of workers and jobs,and firms face adjustment costs in responding to these variations. Matches and separations are described through firms' job offer and firing decisions and workers' job acceptance and quit decisions. This approach obviates the need for a matching function. On this theoretical basis, we argue that the matching function is vulnerable to the Lucas critique. Our calibrated model for the U.S. economy can account for important empirical regularities that the conventional matching model cannot.}, language = {en} }