🔔 New working paper: “The Demand for Economic Narratives” with Sebastian Blesse, Klaus Gründler & @henninghermes.com We study whether households actually demand and value economic narratives — and how these narratives shape beliefs and understanding. Thread following below👇 1/10

What is behind tax elasticities? Often we think firms move when taxes increase. Asked directly, they indeed complain but experimental evidence shows they will not act. Instead tax cuts attract investments. Tax policy works like a ratchet due to home bias: dx.doi.org/10.2139/ssrn...