The impact of COVID-19 on small business outcomes and expectations.

To explore the impact of coronavirus disease 2019 (COVID-19) on small businesses, we conducted a survey of more than 5,800 small businesses between March 28 and April 4, 2020. Several themes emerged. First, mass layoffs and closures had already occurred-just a few weeks into the crisis. Second, the risk of closure was negatively associated with the expected length of the crisis. Moreover, businesses had widely varying beliefs about the likely duration of COVID-related disruptions. Third, many small businesses are financially fragile: The median business with more than $10,000 in monthly expenses had only about 2 wk of cash on hand at the time of the survey. Fourth, the majority of businesses planned to seek funding through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. However, many anticipated problems with accessing the program, such as bureaucratic hassles and difficulties establishing eligibility. Using experimental variation, we also assess take-up rates and business resilience effects for loans relative to grants-based programs.

The role of industry-specific, occupation-specific, and location-specific knowledge in the growth and survival of new firms.

How do regions acquire the knowledge they need to diversify their economic activities? How does the migration of workers among firms and industries contribute to the diffusion of that knowledge? Here we measure the industry-, occupation-, and location-specific knowledge carried by workers from one establishment to the next, using a dataset summarizing the individual work history for an entire country. We study pioneer firms-firms operating in an industry that was not present in a region-because the success of pioneers is the basic unit of regional economic diversification. We find that the growth and survival of pioneers increase significantly when their first hires are workers with experience in a related industry and with work experience in the same location, but not with past experience in a related occupation. We compare these results with new firms that are not pioneers and find that industry-specific knowledge is significantly more important for pioneer than for nonpioneer firms. To address endogeneity we use Bartik instruments, which leverage national fluctuations in the demand for an activity as shocks for local labor supply. The instrumental variable estimates support the finding that industry-specific knowledge is a predictor of the survival and growth of pioneer firms. These findings expand our understanding of the micromechanisms underlying regional economic diversification.

Computer vision uncovers predictors of physical urban change.

Which neighborhoods experience physical improvements? In this paper, we introduce a computer vision method to measure changes in the physical appearances of neighborhoods from time-series street-level imagery. We connect changes in the physical appearance of five US cities with economic and demographic data and find three factors that predict neighborhood improvement. First, neighborhoods that are densely populated by college-educated adults are more likely to experience physical improvements-an observation that is compatible with the economic literature linking human capital and local success. Second, neighborhoods with better initial appearances experience, on average, larger positive improvements-an observation that is consistent with "tipping" theories of urban change. Third, neighborhood improvement correlates positively with physical proximity to the central business district and to other physically attractive neighborhoods-an observation that is consistent with the "invasion" theories of urban sociology. Together, our results provide support for three classical theories of urban change and illustrate the value of using computer vision methods and street-level imagery to understand the physical dynamics of cities.

Common genetic variants associated with cognitive performance identified using the proxy-phenotype method.

We identify common genetic variants associated with cognitive performance using a two-stage approach, which we call the proxy-phenotype method. First, we conduct a genome-wide association study of educational attainment in a large sample (n = 106,736), which produces a set of 69 education-associated SNPs. Second, using independent samples (n = 24,189), we measure the association of these education-associated SNPs with cognitive performance. Three SNPs (rs1487441, rs7923609, and rs2721173) are significantly associated with cognitive performance after correction for multiple hypothesis testing. In an independent sample of older Americans (n = 8,652), we also show that a polygenic score derived from the education-associated SNPs is associated with memory and absence of dementia. Convergent evidence from a set of bioinformatics analyses implicates four specific genes (KNCMA1, NRXN1, POU2F3, and SCRT). All of these genes are associated with a particular neurotransmitter pathway involved in synaptic plasticity, the main cellular mechanism for learning and memory.

The 15-minute city quantified using human mobility data.

Amid rising congestion and transport emissions, policymakers are embracing the '15-minute city' model, which envisions neighbourhoods where basic needs can be met within a short walk from home. Prior research has primarily examined amenity access without exploring its relationship to behaviour. We introduce a measure of local trip behaviour using GPS data from 40 million US mobile devices, defining '15-minute usage' as the proportion of consumption-related trips made within a 15-minute walk from home. Our findings show that the median resident makes only 14% of daily consumption trips locally. Differences in access to local amenities can explain 84% and 74% of the variation in 15-minute usage across and within urban areas, respectively. Historical data from New York zoning policies suggest a causal relationship between local access and 15-minute usage. However, we find a trade-off: increased local usage correlates with higher experienced segregation for low-income residents, signalling potential socio-economic challenges in achieving local living.

Why it is hard to find genes associated with social science traits: theoretical and empirical considerations.

OBJECTIVES: We explain why traits of interest to behavioral scientists may have a genetic architecture featuring hundreds or thousands of loci with tiny individual effects rather than a few with large effects and why such an architecture makes it difficult to find robust associations between traits and genes. METHODS: We conducted a genome-wide association study at 2 sites, Harvard University and Union College, measuring more than 100 physical and behavioral traits with a sample size typical of candidate gene studies. We evaluated predictions that alleles with large effect sizes would be rare and most traits of interest to social science are likely characterized by a lack of strong directional selection. We also carried out a theoretical analysis of the genetic architecture of traits based on R.A. Fisher's geometric model of natural selection and empirical analyses of the effects of selection bias and phenotype measurement stability on the results of genetic association studies. RESULTS: Although we replicated several known genetic associations with physical traits, we found only 2 associations with behavioral traits that met the nominal genome-wide significance threshold, indicating that physical and behavioral traits are mainly affected by numerous genes with small effects. CONCLUSIONS: The challenge for social science genomics is the likelihood that genes are connected to behavioral variation by lengthy, nonlinear, interactive causal chains, and unraveling these chains requires allying with personal genomics to take advantage of the potential for large sample sizes as well as continuing with traditional epidemiological studies.

JUE Insight: How much does COVID-19 increase with mobility? Evidence from New York and four other U.S. cities.

How effective are restrictions on mobility in limiting COVID-19 spread? Using zip code data across five U.S. cities, we estimate that total cases per capita decrease by 19% for every ten percentage point fall in mobility. Addressing endogeneity concerns, we instrument for travel by residential teleworkable and essential shares and find a 25% decline in cases per capita. Using panel data for NYC with week and zip code fixed effects, we estimate a decline of 30%. We find substantial spatial and temporal heterogeneity; east coast cities have stronger effects, with the largest for NYC in the pandemic's early stages.

Learning from deregulation: The asymmetric impact of lockdown and reopening on risky behavior during COVID-19.

During the coronavirus disease 2019 (COVID-19) pandemic, states issued and then rescinded stay-at-home orders that restricted mobility. We develop a model of learning by deregulation, which predicts that lifting stay-at-home orders can signal that going out has become safer. Using restaurant activity data, we find that the implementation of stay-at-home orders initially had a limited impact, but that activity rose quickly after states' reopenings. The results suggest that consumers inferred from reopening that it was safer to eat out. The rational, but mistaken inference that occurs in our model may explain why a sharp rise of COVID-19 cases followed reopening in some states.

Unhappy Cities.

There are persistent differences in self-reported subjective well-being across US metropolitan areas, and residents of declining cities appear less happy than others. Yet some people continue to move to these areas, and newer residents appear to be as unhappy as longer-term residents. While historical data on happiness are limited, the available facts suggest that cities that are now declining were also unhappy in their more prosperous past. These facts support the view that individuals do not maximize happiness alone but include it in the utility function along with other arguments. People may trade off happiness against other competing objectives.

The Promises and Pitfalls of Genoeconomics*

This article reviews existing research at the intersection of genetics and economics, presents some new findings that illustrate the state of genoeconomics research, and surveys the prospects of this emerging field. Twin studies suggest that economic outcomes and preferences, once corrected for measurement error, appear to be about as heritable as many medical conditions and personality traits. Consistent with this pattern, we present new evidence on the heritability of permanent income and wealth. Turning to genetic association studies, we survey the main ways that the direct measurement of genetic variation across individuals is likely to contribute to economics, and we outline the challenges that have slowed progress in making these contributions. The most urgent problem facing researchers in this field is that most existing efforts to find associations between genetic variation and economic behavior are based on samples that are too small to ensure adequate statistical power. This has led to many false positives in the literature. We suggest a number of possible strategies to improve and remedy this problem: (a) pooling data sets, (b) using statistical techniques that exploit the greater information content of many genes considered jointly, and (c) focusing on economically relevant traits that are most proximate to known biological mechanisms.

Cities, productivity, and quality of life.

Technological changes and improved electronic communications seem, paradoxically, to be making cities more, rather than less, important. There is a strong correlation between urbanization and economic development across countries, and within-country evidence suggests that productivity rises in dense agglomerations. But urban economic advantages are often offset by the perennial urban curses of crime, congestion and contagious disease. The past history of the developed world suggests that these problems require more capable governments that use a combination of economic and engineering solutions. Though the scope of urban challenges can make remaining rural seem attractive, agrarian poverty has typically also been quite costly.