Aggregate Short Interest and Market Valuations

By Owen A. Lamont and Jeremy C. Stein

American Economic Review, May 2004

Contracts for Agents with Biased Beliefs: Some Theory and an Experiment

By Anja Sautmann

American Economic Journal: Microeconomics, August 2013

This paper experimentally tests the predictions of a principal-agent model in which the agent has biased beliefs about his ability. Overconfident workers are found to earn lower wages than underconfident ones because they overestimate their expected pa...

The Stories We Tell: A Reconsideration of AS/AD Analysis

By David Colander

Journal of Economic Perspectives, Summer 1995

This paper explains that the AS/AD model as currently presented in the tests is seriously flawed. It does not fulfill the minimum requirement of a model: logical consistency. Its component parts are derived from models that reflect different, and inconsis...

Voluntary Compliance, Pollution Levels, and Infant Mortality in Mexico

By Andrew Foster, Emilio Gutierrez, and Naresh Kumar

American Economic Review, May 2009

Using Field Experiments to Test Equivalence between Auction Formats: Magic on the Internet

By David Lucking-Reiley

American Economic Review, December 1999

William Vickrey's predicted equivalences between first-price sealed-bid and Dutch auctions, and between second-price sealed-bid and English auctions, are tested using field experiments that auctioned off collectible trading cards over the Internet. The re...

Social Organizations, Violence, and Modern Growth

By Avner Greif and Murat Iyigun

American Economic Review, May 2013

Social institutions were often founded by the elite to avoid social upheavals. Institutions helped mitigate the threat of violent social responses to labor-saving innovations. But their organizational forms were influenced by preexisting cultural and soci...

Aid, Policies, and Growth: Comment

By William Easterly, Ross Levine, and David Roodman

American Economic Review, June 2004

Investment under Uncertainty with Strategic Debt Service

By Suresh Sundaresan and Neng Wang

American Economic Review, May 2007

Inequality Among World Citizens: 1820-1992

By François Bourguignon and Christian Morrisson

American Economic Review, September 2002

This paper investigates the distribution of well being among world citizens during the last two centuries. The estimates show that inequality of world distribution of income worsened from the beginning of the 19th century to World War II and after that se...

Who Should Buy Long-Term Bonds?

By John Y. Campbell and LuisM. Viceira

American Economic Review, March 2001

According to conventional wisdom, long-term bonds are appropriate for conservative long-term investors. This paper develops a model of optimal consumption and portfolio choice for infinite-lived investors with recursive utility who face stochastic interes...

Proximity and Production Fragmentation

By Robert C. Johnson and Guillermo Noguera

American Economic Review, May 2012

Cross-border production chains tend to include geographically proximate countries. This suggests that increases in fragmentation should be largest among nearby trading partners, and thus may serve to localize gross trade. Using data on gross and value add...

The Growing Gap in Life Expectancy: Using the Future Elderly Model to Estimate Implications for Social Security and Medicare

By Dana P. Goldman and Peter R. Orszag

American Economic Review, May 2014

Mortality gradients by education and income have been rising in the United States and elsewhere. However, their impact on Social Security progressivity has received relatively little attention, and the impact on Medicare has received effectively none. Thi...

Dividend Taxation and Corporate Governance

By Randall Morck and Bernard Yeung

Journal of Economic Perspectives, Summer 2005

In 2003, the United States enacted a tax reform that reduced, but did not eliminate, individual dividend income taxes. Cutting the dividend tax deprives corporate insiders of a justification for retaining earnings to build unprofitable corporate empires. ...

The Misallocation of Housing Under Rent Control

By Edward L. Glaeser and Erzo F. P. Luttmer

American Economic Review, September 2003

The standard analysis of price controls assumes that goods are efficiently allocated, even when there are shortages. But if shortages mean that goods are randomly allocated across the consumers that want them, the welfare costs from misallocation may be g...

Equality, Efficiency, and Market Fundamentals: The Dynamics of International Medical-Care Reform

By David M. Cutler

Journal of Economic Literature, September 2002

Public opinion surveys uniformly show low support for medical-care systems in developed countries. The longstanding conflict between equal access to care and efficient service provision partly explains this dissatisfaction. But the trade-off is particular...

Does Increasing Women's Schooling Raise the Schooling of the Next Generation?

By Jere R. Behrman and Mark R. Rosenzweig

American Economic Review, March 2002

Child-Adoption Matching: Preferences for Gender and Race

By Mariagiovanna Baccara, Allan Collard-Wexler, Leonardo Felli, and Leeat Yariv

American Economic Journal: Applied Economics, July 2014

This paper uses a new dataset on child-adoption matching to estimate the preferences of potential adoptive parents over US-born and unborn children relinquished for adoption. We identify significant preferences favoring girls and against African American ...

Naked Exclusion, Efficient Breach, and Downstream Competition

By John Simpson and Abraham L. Wickelgren

American Economic Review, September 2007

Previous papers by Eric B. Rasmusen, J. Mark Ramseyer, and John S. Wiley, Jr. (1991) and Ilya R. Segal and Michael D. Whinston (2000) argue that exclusive contracts can inefficiently deter entry in the presence of scale economies and multiple buyers. W...

Evolution and Intelligent Design

By Thomas J. Sargent

American Economic Review, March 2008

Who Will Fight? The All-Volunteer Army after 9/11

By Susan Payne Carter, Alexander A. Smith, and Carl Wojtaszek

American Economic Review, May 2017

Who fought the War on Terror? We find that as the wars in Iraq and Afghanistan progressed, there was an increase in the fraction of active-duty Army enlistees who were white or from high-income neighborhoods and that these two groups selected combat occup...