Insights From

Daniel Murphy

Interest Rates and Space: How Home Size Affects Consumer Spending

New research from UVA Darden Professor Dan Murphy reveals how home size and urban density affect consumer spending in unexpected ways.

A Taxing Conundrum: Land vs. Property

In the U.S., municipal governments raise revenue through property taxes, based on a percentage of the value of land and all the structures built upon it. But economists have long recognized a problem: The higher the value of the structures, the higher the tax will be, which means that property owners are disincentivized from building on their land.

Drilling and Debt: When Oil Production Doesn’t Respond to Demand

Why would oil producers continue to pump oil despite an excess supply globally and a shortage in storage space? Darden Professors Elena Loutskina and Daniel Murphy examine how oil prices went negative (and could again), collateralized debt and oil producers’ relationships with lenders, and broader implications for the oil market.

Rebound or Permanent Slump? Possible Impacts of US COVID-19 Fiscal Policies

Fiscal policy is a powerful tool to combat economic downturns, but the results depend on decreasing inequality, an imperative to the efficacy of fiscal multipliers. As COVID-19 cases rise, new research offers insights into which fiscal policies may bolster the economy — and the other options, which may have long-term ramifications.

Urban and Suburban Patterns of Consumption and Time Use

Increasing urbanization can prove challenging in the era of COVID-19 social distancing, particularly given the dependence on essential services and the unique health concerns of high-population density. A new study clarifies the tradeoffs between city and suburban patterns of consumption and how different areas fulfill essential daily functions.

The Real Effect of Fiscal Stimulus: Inequality, Interest Rates and Beyond

Does fiscal stimulus raise interest rates and tighten credit markets, as theoretical models of the macroeconmy predict? New research shows what the real effect of government spending is on the U.S. economy — and what high levels of inequality have to do with the interest rate response to fiscal stimulus.

A New Model: Dynamics of Household Income and Consumption

What drives household consumption? Standard theories of consumer behavior may not fully account for a major driver of spending (or not spending). Professor Dan Murphy and colleagues have a new model to help us understand consumption choices and the broader effects of policymakers’ attempts to stimulate the economy.

Rising Rice Consumption in Nigeria: Farming and the Value of a Value Chain

Though agriculture is important to Nigerian economic activity and rice is a major food staple in Nigerian households, the domestic supply does not meet demand. The Value Chain Development Program public-private partnership is designed to improve the livelihoods of economically disadvantaged farmers.

Macron and French Resistance: Economic Growth and Labor Policy

Though French President Emmanuel Macron entered office with huge popularity, his attempts at long-term economic growth through labor reform were met with plummeting approval ratings and even yellow-vest protests. What will the country do to balance social protections vs. taxes?

Crowded Out? Government Spending and the Private Sector

Resources are limited, and business and government compete for them … or so goes conventional wisdom and widespread economic theory. Does it hold up in the real world? Professor Dan Murphy’s research, presented at the IMF’s annual research conference, investigates government spending and its effect on the private sector.