Robust Social Decisions

By Eric Danan, Thibault Gajdos, Brian Hill, and Jean-Marc Tallon

American Economic Review, September 2016

We propose and operationalize normative principles to guide social decisions when individuals potentially have imprecise and heterogeneous beliefs, in addition to conflicting tastes or interests. To do so, we adapt the standard Pareto principle to those p...

Exploitative Innovation

By Paul Heidhues, Botond Kőszegi, and Takeshi Murooka

American Economic Journal: Microeconomics, February 2016

We analyze innovation incentives when firms can invest either in increasing the product's value (value-increasing innovation) or in increasing the hidden prices they collect from naive consumers (exploitative innovation). We show that if firms cannot retu...

Innovation and Institutional Ownership

By Philippe Aghion, John Van Reenen, and Luigi Zingales

American Economic Review, February 2013

We find that greater institutional ownership is associated with more innovation. To explore the mechanism, we contrast the "lazy manager" hypothesis with a model where institutional owners increase innovation incentives through reducing career risks. T...

It's the Market: The Broad-Based Rise in the Return to Top Talent

[Symposium: The Top 1 Percent]

By Steven N. Kaplan and Joshua Rauh

Journal of Economic Perspectives, Summer 2013

One explanation that has been proposed for rising inequality is that technical change allows highly talented individuals, or "superstars" to manage or perform on a larger scale, applying their talent to greater pools of resources and reaching larger num...

From Financial Crash to Debt Crisis

By Carmen M. Reinhart and Kenneth S. Rogoff

American Economic Review, August 2011

Newly developed historical time series on public debt, along with data on external debts, allow a deeper analysis of the debt cycles underlying serial debt and banking crises. We test three related hypotheses at both "world" aggregate levels and on an ind...

Habit Persistence, Asset Returns, and the Business Cycle

By Michele Boldrin, Lawrence J. Christiano, and Jonas D. M. Fisher

American Economic Review, March 2001

Two modifications are introduced into the standard real-business-cycle model: habit preferences and a two-sector technology with limited intersectoral factor mobility. The model is consistent with the observed mean risk-free rate, equity premium, and Shar...

Caps on Political Lobbying: Reply

By Yeon-Koo Che and Ian L. Gale

American Economic Review, September 2006

Recommendations for Further Reading

By Bernard Saffran

Journal of Economic Perspectives, Fall 1988

Incorporating Fairness into Game Theory and Economics: Comment

By William Robert Nelson

American Economic Review, September 2001

Banks and Liquidity

By Douglas W. Diamond and Raghuram G. Rajan

American Economic Review, May 2001

Sectoral Technology and Structural Transformation

By Berthold Herrendorf, Christopher Herrington, and Ákos Valentinyi

American Economic Journal: Macroeconomics, October 2015

We assess how the properties of technology affect structural transformation, i.e., the reallocation of production factors across the broad sectors of agriculture, manufacturing, and services. To this end, we estimate sectoral constant elasticity of substi...

Completing an Economics PhD in Five Years

By Wendy A. Stock, T. Aldrich Finegan, and John J. Siegfried

American Economic Review, May 2009

Who Benefits Most from Employee Involvement: Firms or Workers?

By Richard B. Freeman and Morris M. Kleiner

American Economic Review, May 2000

Stabilization and Growth in Transition Economies: The Early Experience

[Symposium: Transition from Socialism]

By Stanley Fischer, Ratna Sahay, and Carlos A. Vegh

Journal of Economic Perspectives, Spring 1996

The authors analyze the growth and stabilization experience in twenty-six transition economies in Eastern Europe, the former Soviet Union, and Mongolia for the period 1989-94. Inflation rates have declined significantly in most countries following an infl...

Bayesian Model Comparison and Validation

By John Geweke

American Economic Review, May 2007

A Reassessment of Real Business Cycle Theory

By Ellen R. McGrattan and Edward C. Prescott

American Economic Review, May 2014

During the downturn of 2008–2009, output and hours fell significantly, but labor productivity rose. These facts have led many to conclude that there is a significant deviation between observations and current macrotheories that assume business cycle...

Optimal Annuitization with Stochastic Mortality and Correlated Medical Costs

By Felix Reichling and Kent Smetters

American Economic Review, November 2015

The conventional wisdom since Yaari (1965) is that households without a bequest motive should fully annuitize their investments. Numerous frictions do not break this sharp result. We modify the Yaari framework by allowing a household's mortality risk itse...

Investor Sentiment and Corporate Finance: Micro and Macro

By Owen A. Lamont and Jeremy C. Stein

American Economic Review, May 2006

Consumption Inequality over the Last Half Century: Some Evidence Using the New PSID Consumption Measure

By Orazio Attanasio and Luigi Pistaferri

American Economic Review, May 2014

This paper contributes to the debate regarding trends in consumption inequality in the United States. We present a new measure of consumption inequality based on the redesigned 1999–2011 PSID. We impute consumption to the families observed before 19...

Committee on the Status of Minority Groups in the Economics Profession: Report of Committee Activities for the 2010 Calendar Year

By Ngina Chiteji

American Economic Review, May 2011