It is not only tourists that visit Paris in June. The European Economics and Finance (EEFS) society was hosting its 23rd annual conference in Puteax. This year, Francesco Zanetti was responsible for an outstanding keynote speech on trade shocks and machine learning. Within the EEFS conference, our paper on supply and demand shocks was presented during the "Income Inequality and Convergence" session. You can find abstract and slides below.

Abstract. We study the contribution of supply and demand shocks to income inequality in a panel setting. In particular, we exploit the newly created Global Repository of Income Dynamics to study how unanticipated supply and demand shocks identified using long-run restrictions affect income inequality as measured by Gini. We find that demand shocks originating in the United States, on average, increase income dispersion, which we interpret as the impact of changes to US consumption of foreign goods and services. Supply shocks also tend to increase income dispersion, but have a much weaker and short-lived impact. A comparison with responses to domestic shocks reveals that demand shocks exhibit a similar dynamic. Domestic supply shocks are linked to declines in income dispersion.  

Presentation slides: