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Using Nonlinear Budget Sets to Estimate Extensive Margin Responses: Method and Evidence from the Earnings Test

By Alexander M. Gelber, Damon Jones, Daniel W. Sacks, and Jae Song

American Economic Journal: Applied Economics, October 2021

We estimate the impact of the Social Security Annual Earnings Test (AET) on older workers' employment. The AET reduces social security claimants' current benefits in proportion to their earnings in excess of an exempt amount. Using a regression kink desig...

Air Pollution and Criminal Activity: Microgeographic Evidence from Chicago

By Evan Herrnstadt, Anthony Heyes, Erich Muehlegger, and Soodeh Saberian

American Economic Journal: Applied Economics, October 2021

A growing literature documents that air pollution adversely impacts health, productivity, and cognition. This paper provides the first evidence of a causal link between air pollution and aggressive behavior, as documented by violent crime. Using the geolo...

Different Strokes for Different Folks? Experimental Evidence on the Effectiveness of Input and Output Incentive Contracts for Health Care Providers with Varying Skills

By Manoj Mohanan, Katherine Donato, Grant Miller, Yulya Truskinovsky, and Marcos Vera-Hernández

American Economic Journal: Applied Economics, October 2021

A central issue in designing incentive contracts is the decision to reward agents' input use versus outputs. The trade-off between risk and return to innovation in production can also lead agents with varying skill levels to perform differentially under d...

"Too Young to Die": Deprivation Measures Combining Poverty and Premature Mortality

By Jean-Marie Baland, Guilhem Cassan, and Benoit Decerf

American Economic Journal: Applied Economics, October 2021

Most measures of deprivation concentrate on deprivation among the living population and, thus, ignore premature mortality. This omission leads to a severe bias in the evaluation of deprivation. We propose two different measures that combine information on...