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David E. Weinstein

Professor Research

David E. Weinstein is the director of research of the Center and has several individual projects under way funded in part by the National Science Foundation, the Institute for New Economic Thinking (INET), and a Google Research Grant. Professor Weinstein’s research and teaching focus on international economics, macroeconomics, corporate finance, the Japanese economy, and industrial policy. His research utilizes massively detailed databases on various aspects of the Japanese economy. In 2012-2013, Professor Weinstein continued his research on systemic financial risk in Japan. He has a major project under way that aims to understand how banking crises affect aggregate investment. In particular, this research will answer the question of how important problems in individual large financial institutions are for understanding aggregate loan volatility in general and what impact bank loan supply has on firms’ investment.

His work on Japanese inflation involves examining how problems in the measurement of inflation should affect monetary policy. In particular, Professor Weinstein examines whether central banks should care less about inflation movements when inflation rates become lower. This research has implications for understanding monetary policy in Japan and much of the developed world.

Professor Weinstein has continued his work on "Prices in Space and Time," a research project using detailed (barcode) data from the ACNielsen HomeScan (for purchases in the United States), Nikkei-POS, and ACNielsen Scantrak (for retail sales in Japan and several other countries), and Google's price and click-through information (for all retail products and real estate reported on the Google Product search and Google Maps for several countries). This project aims to measure inflation at a daily frequency and explore how daily price and consumption data respond to macroeconomic shocks.

Professor Weinstein is also pursuing a related research project, "Internet Prices and Price Indexes," for which he will study the vast amount of daily price and click-through data available on Google Product Search. This project aims to provide new ways to measure the quality of goods online as well as improve our understanding of aggregate pricing.

Professor Weinstein’s recent publications include “Exports and Financial Shocks,” with Mary Amiti of the Federal Reserve Bank of New York, in The Quarterly Journal of Economics (November 2011). His latest Working Paper, also with Mary Amiti, is "How Much Do Bank Shocks Affect Investment? Evidence from Matched Bank-Firm Loan Data" (December 2012).  He continues to publish in major journals, including The American Economic Review.

Professor Weinstein’s research is frequently cited and discussed in the media, and he is a frequent commentator on Japan. In 2012–2013, he was featured in news outlets including NHK, The Washington Post, and Reuters.