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News or Noise? The Missing Link

By Ryan Chahrour and Kyle Jurado

American Economic Review, July 2018

The literature on belief-driven business cycles treats news and noise as distinct representations of agents' beliefs. We prove they are empirically the same. Our result lets us isolate the importance of purely belief-driven fluctuations. Using three promi...

The Price of Prejudice

By Morten Størling Hedegaard and Jean-Robert Tyran

American Economic Journal: Applied Economics, January 2018

We present a new type of field experiment to investigate ethnic prejudice in the workplace. Our design allows us to study how potential discriminators respond to changes in the cost of discrimination. We find that ethnic discrimination is common but highl...