Partisan Grading

By Talia Bar and Asaf Zussman

American Economic Journal: Applied Economics, January 2012

We study grading outcomes associated with professors in an elite university in the United States who were identified—using voter registration records from the county where the university is located—as either Republicans or Democrats. The evide...

Loss Aversion and Consumption Choice: Theory and Experimental Evidence

By Heiko Karle, Georg Kirchsteiger, and Martin Peitz

American Economic Journal: Microeconomics, May 2015

We analyze a consumer-choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. Pa...

Monetary Commitment and Fiscal Discretion: The Optimal Policy Mix

By Stefano Gnocchi

American Economic Journal: Macroeconomics, April 2013

We study a noncooperative policy game between monetary and fiscal policy, where only monetary policy can commit to future actions. The equilibrium outcome of the game depends on the strategies available to the monetary policymaker. If strategies are le...

The Cyclical Volatility of Labor Markets under Frictional Financial Markets

By Nicolas Petrosky-Nadeau and Etienne Wasmer

American Economic Journal: Macroeconomics, January 2013

We provide a dynamic extension of an economy with search on credit and labor markets (Wasmer and Weil 2004). Financial frictions create volatility. They add an additional, almost acyclical, entry cost to procyclical job creation costs, thus increasing ...

Overcoming Adverse Selection: How Public Intervention Can Restore Market Functioning

By Jean Tirole

American Economic Review, February 2012

The paper provides a first analysis of market jump starting and its two-way interaction between mechanism design and participation constraints. The government optimally overpays for the legacy assets and cleans up the market of its weakest assets, through...

Global Supply Chains and Wage Inequality

By Arnaud Costinot, Jonathan Vogel, and Su Wang

American Economic Review, May 2012

A salient feature of globalization in recent decades is the emergence of "global supply chains" in which different countries specialize in different stages of a sequential production process. In Costinot, Vogel and Wang (2011) (CVW hereafter), we have dev...

The Information-Technology Revolution and the Stock Market

By Jeremy Greenwood and Boyan Jovanovic

American Economic Review, May 1999

Matching in Networks with Bilateral Contracts

By John William Hatfield and Scott Duke Kominers

American Economic Journal: Microeconomics, February 2012

We introduce a model in which firms trade goods via bilateral contracts which specify a buyer, a seller, and the terms of the exchange. This setting subsumes (many-to-many) matching with contracts, as well as supply chain matching. When firms' relationshi...

Business Groups in Emerging Markets: Paragons or Parasites?

By Tarun Khanna and Yishay Yafeh

Journal of Economic Literature, June 2007

Diversified business groups, consisting of legally independent firms operating across diverse industries, are ubiquitous in emerging markets. Groups around the world share certain attributes but also vary substantially in structure, ownership, and other...

Ready for Boarding? The Effects of a Boarding School for Disadvantaged Students

By Luc Behaghel, Clément de Chaisemartin, and Marc Gurgand

American Economic Journal: Applied Economics, January 2017

Boarding schools substitute school to home, but little is known on the effects this substitution produces on students. We present results of an experiment in which seats in a boarding school for disadvantaged students were randomly allocated. Boarders enj...

Forces Shaping Hours Worked in the OECD, 1960-2004

By Cara McDaniel

American Economic Journal: Macroeconomics, October 2011

The goal of this paper is to examine the role of taxes and productivity growth as forces influencing market hours. To achieve this goal, the paper considers a calibrated growth model extended to include home production and subsistence consumption, both of...

Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments

[Symposium: Econometric Tools]

By Joshua D. Angrist and Alan B. Krueger

Journal of Economic Perspectives, Fall 2001

Instrumental variables was first used in the 1920s to estimate supply and demand elasticities and later to correct for measurement error in single equation models. Recently, instrumental variables have been widely used to reduce bias from omitted variable...

The Young Person's Guide to Writing Economic Theory

By William Thomson

Journal of Economic Literature, March 1999

I formulate recommendations to young authors for writing economic theory well. I state general principles of good writing, and emphasize the role of the different components of a paper and the importance of the structure of one's work being clear. I expla...

Schooling Data, Technological Diffusion, and the Neoclassical Model

By Angel de la Fuente and Rafael Domenech

American Economic Review, May 2001

The Expanding Gender Earnings Gap: Evidence from the LEHD-2000 Census

By Claudia Goldin, Sari Pekkala Kerr, Claudia Olivetti, and Erling Barth

American Economic Review, May 2017

The gender earnings gap is an expanding statistic over the lifecycle. We use the LEHD Census 2000 to understand the roles of industry, occupation, and establishment 14 years after leaving school. The gap for college graduates 26 to 39 years old expands by...

Composition and Aggregate Real Wage Growth

By Mary C. Daly and Bart Hobijn

American Economic Review, May 2017

Aggregate real wages exhibit less procyclicality than most macroeconomic models predict. We use 35 years of Current Population Survey data to confirm that the puzzling behavior of wages largely owes to changes in the composition of the employed over the b...

The Girl Next Door: The Effect of Opposite Gender Friends on High School Achievement

By Andrew J. Hill

American Economic Journal: Applied Economics, July 2015

This paper finds that a student's share of opposite gender school friends negatively affects high school GPA. It uses the gender composition of schoolmates in an individual's neighborhood as an instrument for the gender composition of an individual's self...

Real Wage Index Numbers

By John Pencavel

American Economic Review, May 2011

Real wage index numbers have been used to measure movements in the standard of living of the typical worker. This paper describes some of these indicators for the United States and England. A new real wage index is proposed that resembles the sliding scal...

Go Figure: The Strategy of Nonliteral Speech

By Hugo M. Mialon and Sue H. Mialon

American Economic Journal: Microeconomics, May 2013

We develop a model of figurative or indirect speech, which may convey a meaning that differs from its literal meaning. The model yields analytical conditions for speech to be figurative in equilibrium and delivers a number of comparative statics results. ...

The Price of Experience

By Hyeok Jeong, Yong Kim, and Iourii Manovskii

American Economic Review, February 2015

We identify a key role of factor supply, driven by demographic changes, in shaping several empirical regularities that are a focus of active research in macro and labor economics. In particular, demographic changes alone can account for the large movement...