Tight Money-Tight Credit: Coordination Failure in the Conduct of Monetary and Financial Policies

By Julio A. Carrillo, Enrique G. Mendoza, Victoria Nuguer, and Jessica Roldán-Peña

American Economic Journal: Macroeconomics, July 2021

Violations of Tinbergen's rule and strategic interaction undermine stabilization policies in a New Keynesian model with the Bernanke-Gertler accelerator. Welfare costs of risk shocks are large because of efficiency losses and income effects of costly moni...

Advertising, Innovation, and Economic Growth

By Laurent Cavenaile and Pau Roldan-Blanco

American Economic Journal: Macroeconomics, July 2021

This paper analyzes the implications of advertising for firm dynamics and economic growth through its interaction with R&D. We develop a model of endogenous growth with firm heterogeneity that incorporates advertising decisions and calibrate it to match s...

CTREE Conference 2018

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May 30 – June 1, 2018, San Antonio, TX

CTREE Conference 2015

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May 27 - 29, 2015, Minneapolis, MN

Front Matter

American Economic Review, July 2021

Unwatched Pollution: The Effect of Intermittent Monitoring on Air Quality

By Eric Yongchen Zou

American Economic Review, July 2021

Intermittent monitoring of environmental standards may induce strategic changes in polluting activities. This paper documents local strategic responses to a cyclical, once-every-six-day air quality monitoring schedule under the federal Clean Air Act. Usin...

The Economic Consequences of Bankruptcy Reform

By Tal Gross, Raymond Kluender, Feng Liu, Matthew J. Notowidigdo, and Jialan Wang

American Economic Review, July 2021

A more generous consumer bankruptcy system provides greater insurance against financial risks but may also raise the cost of credit. We study this trade-off using the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which increased t...

Notching R&D Investment with Corporate Income Tax Cuts in China

By Zhao Chen, Zhikuo Liu, Juan Carlos Suárez Serrato, and Daniel Yi Xu

American Economic Review, July 2021

We study a Chinese policy that awards substantial tax cuts to firms with R&D investment over a threshold or "notch." Quasi-experimental variation and administrative tax data show a significant increase in reported R&D that is partly driven by firms relabe...

Recruitment, Effort, and Retention Effects of Performance Contracts for Civil Servants: Experimental Evidence from Rwandan Primary Schools

By Clare Leaver, Owen Ozier, Pieter Serneels, and Andrew Zeitlin

American Economic Review, July 2021

This paper reports on a two-tiered experiment designed to separately identify the selection and effort margins of pay for performance (P4P). At the recruitment stage, teacher labor markets were randomly assigned to a "pay-for-percentile" or fixed-wage con...

Adverse and Advantageous Selection in the Laboratory

By S. Nageeb Ali, Maximilian Mihm, Lucas Siga, and Chloe Tergiman

American Economic Review, July 2021

We study two-player games where one-sided asymmetric information can lead to either adverse or advantageous selection. We contrast behavior in these games with settings where both players are uninformed. We find stark differences, suggesting that subjects...

Market Fragmentation

By Daniel Chen and Darrell Duffie

American Economic Review, July 2021

We model a simple market setting in which fragmentation of trade of the same asset across multiple exchanges improves allocative efficiency. Fragmentation reduces the inhibiting effect of price-impact avoidance on order submission. Although fragmentation ...

Foreign interventions

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Do scholars need a better framework for thinking about foreign influence?

Shopping for Lower Sales Tax Rates

By Scott R. Baker, Stephanie Johnson, and Lorenz Kueng

American Economic Journal: Macroeconomics, July 2021

Using comprehensive high-frequency state and local sales tax data, we show that shopping behavior responds strongly to changes in sales tax rates. Even though sales taxes are not observed in posted prices and have a wide range of rates and exemptions, c...

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Paying attention to price hikes

[Research Highlight]

June 22, 2021

How do consumers respond to increases in sales tax?

On Her Own Account: How Strengthening Women's Financial Control Impacts Labor Supply and Gender Norms

By Erica Field, Rohini Pande, Natalia Rigol, Simone Schaner, and Charity Troyer Moore

American Economic Review, July 2021

Can increasing control over earnings incentivize a woman to work, and thereby influence norms around gender roles? We randomly varied whether rural Indian women received bank accounts, training in account use, and direct deposit of public sector wages int...

Does Biology Drive Child Penalties? Evidence from Biological and Adoptive Families

By Henrik Kleven, Camille Landais, and Jakob Egholt Søgaard

American Economic Review: Insights, June 2021

This paper investigates whether the impact of children on the labor market outcomes of women relative to men—child penalties—can be explained by the biological links between mother and child. We estimate child penalties in biological and adoptive fami...

A Network of Thrones: Kinship and Conflict in Europe, 1495–1918

By Seth G. Benzell and Kevin Cooke

American Economic Journal: Applied Economics, July 2021

We construct a database linking European royal kinship networks, monarchies, and wars to study the effect of family ties on conflict. To establish causality, we exploit decreases in connection caused by apolitical deaths of rulers' mutual relatives. These...

Using Synthetic Controls: Feasibility, Data Requirements, and Methodological Aspects

By Alberto Abadie

Journal of Economic Literature, June 2021

Probably because of their interpretability and transparent nature, synthetic controls have become widely applied in empirical research in economics and the social sciences. This article aims to provide practical guidance to researchers employing synthetic...

2021 Center for Accounting Research and Education Conference

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July 06, 2021

Registration is open for the conference to be held virtually in September 2021.