Paying Attention or Paying Too Much in Medicare Part D

By Jonathan D. Ketcham, Claudio Lucarelli, and Christopher A. Powers

American Economic Review, January 2015

We study whether people became less likely to switch Medicare prescription drug plans (PDPs) due to more options and more time in Part D. Panel data for a random 20 percent sample of enrollees from 2006-2010 show that 50 percent were not in their original...

The Long Slump

By Robert E. Hall

American Economic Review, April 2011

In a market-clearing economy, declines in demand from one sector do not cause large declines in aggregate output because other sectors expand. The key price mediating the response is the interest rate. A decline in the rate stimulates all categories of sp...

Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in Southern California: Reply

By Justine Hastings

American Economic Review, June 2010

In their comment, Taylor, Kreisle and Zimmerman use gasoline price data taken from fleet card transactions at selected gasoline stations to re-examine a subset of results presented in Hastings (2004). Bringing new data to re-examine the question is a help...

Gender and Business Outcomes of Black and Hispanic New Entrepreneurs in the United States

By Marie T. Mora and Alberto Dávila

American Economic Review, May 2014

In light of the growing numbers of women of color in the entrepreneurial sector in the United States, employing public-use microdata from the 2007 Survey of Business Owners, this study finds that new firms owned by black and Hispanic women were more likel...

When Should Sellers Use Auctions?

By James W. Roberts and Andrew Sweeting

American Economic Review, August 2013

A bidding process can be organized so that offers are submitted simultaneously or sequentially. In the latter case, potential buyers can condition their behavior on previous entrants' decisions. The relative performance of these mechanisms is investiga...

On Overborrowing

By Martín Uribe

American Economic Review, May 2006

Herd Behavior and Investment: Comment

By Marco Ottaviani and Peter Sorensen

American Economic Review, June 2000

The Labor Supply of Immigrants in the United States: The Role of Changing Source Country Characteristics

By Mary Lopez and Fernando Antonio Lozano

American Economic Review, May 2009

Vertical Arrangements, Market Structure, and Competition: An Analysis of Restructured US Electricity Markets

By James B. Bushnell, Erin T. Mansur, and Celeste Saravia

American Economic Review, March 2008

This paper examines vertical arrangements in electricity markets. Vertically integrated wholesalers, or those with long-term contracts, have less incentive to raise wholesale prices when retail prices are determined beforehand. For three restructured m...

Distributed Computation as an Economic System

By Bernardo A. Huberman and Tad Hogg

Journal of Economic Perspectives, Winter 1995

As computer networks grow and blanket the planet, they become a community of concurrent processes, which, in their interactions, strategies, and lack of perfect knowledge, become analogous to human market economies. Economics may thus offer new ways of de...

Sharing Demographic Risk--Who Is Afraid of the Baby Bust?

By Alexander Ludwig and Michael Reiter

American Economic Journal: Economic Policy, November 2010

We model the reaction of a PAYG pension system to demographic shocks. We compare the ex ante first best and second best solution of a Ramsey planner with full commitment to the outcome under simple third best rules. The model is calibrated to the German e...

Kwacha Gonna Do? Experimental Evidence about Labor Supply in Rural Malawi

By Jessica Goldberg

American Economic Journal: Applied Economics, January 2016

I use a field experiment to estimate the wage elasticity of employment in the day labor market in rural Malawi. Once a week for 12 consecutive weeks, I make job offers for a workfare-type program to 529 adults. The daily wage varies from the tenth to the ...

Report: American Economic Association Committee on Statistics

By Robert Feenstra

American Economic Review, May 2013

U.S. Economic Growth since 1870: One Big Wave?

By Robert J. Gordon

American Economic Review, May 1999

An Introduction to Vote-Counting Schemes

[Symposium: Economics of Voting]

By Jonathan Levin and Barry Nalebuff

Journal of Economic Perspectives, Winter 1995

Many researchers, following Kenneth Arrow's lead, have concerned themselves with stating various desirable or undesirable criteria and attempting to classify vote-counting systems. This paper moves away from theoretical discussions: the authors illustrate...

Incentive-Compatible Matching Mechanisms: Consistency with Various Stability Notions

By M. Bumin Yenmez

American Economic Journal: Microeconomics, November 2013

I study the consistency of incentive compatibility with several stability notions for a one-to-one matching market with transfers. Ex post stability, studied in the matching literature, is too strong to be satisfied together with incentive compatibilit...

Treatment Effect Bounds under Monotonicity Assumptions: An Application to Swan-Ganz Catheterization

By Jay Bhattacharya, Azeem M. Shaikh, and Edward Vytlacil

American Economic Review, May 2008

An Introduction to Applicable Game Theory

By Robert Gibbons

Journal of Economic Perspectives, Winter 1997

This paper offers an introduction to game theory for applied economists. The author gives simple definitions and intuitive examples of four kinds of games and their corresponding solution concepts: Nash equilibrium in static games of complete information;...

Why Tie a Product Consumers Do Not Use?

By Dennis W. Carlton, Joshua S. Gans, and Michael Waldman

American Economic Journal: Microeconomics, August 2010

We provide an explanation for tying not based on any of the standard arguments: efficiency, price discrimination, or exclusion. In our analysis a monopolist ties a complementary good to its monopolized good, but consumers do not use the tied good. The tie...

Financial Knowledge and Financial Literacy at the Household Level

By Alan L. Gustman, Thomas L. Steinmeier, and Nahid Tabatabai

American Economic Review, May 2012

There is evidence of a relation between numeracy and wealth held outside of pensions and Social Security. With pensions and Social Security accounting for half of wealth at retirement, and evidence that those with pensions save more in other forms, one wo...