Simplicity and Probability Weighting in Choice under Risk

By Drew Fudenberg and Indira Puri

AEA Papers and Proceedings, May 2022

We present a speculative application of model estimates from Fudenberg and Puri (2021) to prize-linked savings in South Africa. The models used include one combining simplicity theory (Puri 2018, 2022), a preference for lotteries with fewer possible outco...

Revealed Preferences for Randomization: An Overview

By Marina Agranov and Pietro Ortoleva

AEA Papers and Proceedings, May 2022

We survey the empirical evidence on subjects' desire to randomize and its relation to stochastic choice. Preferences for randomization are documented by a substantial body of empirical work using different methodologies and in several domains, including o...

Persistent Monetary Policy in a Model with Labor Market Frictions

By Roman Goncharenko and Elizaveta Lukmanova

AEA Papers and Proceedings, May 2022

In a basic New Keynesian DSGE model with involuntary unemployment and inflation target shocks, we study the role of labor markets in the transmission of persistent monetary policy shocks that increase households' inflation expectations. The model predicts...

Monetary Policy, Labor Market, and Sectoral Heterogeneity

By Aarti Singh, Jacek Suda, and Anastasia Zervou

AEA Papers and Proceedings, May 2022

We study the effects of monetary policy on the labor market across different sectors. We find that the employment response is stronger for firms in manufacturing and construction relative to firms in services. The result also holds within small and large ...

Do Bonuses Offset the Allocative Effects of Downward Rigid Base Wages?

By Anne Kathrin Funk and Daniel Kaufmann

AEA Papers and Proceedings, May 2022

We measure the labor market outcomes of employees with downward rigid base wages after an unexpected deflationary shock in Switzerland using a firm survey matched with Social Security register data. The employees that additionally receive downward flexibl...

Does (All) Police Violence Cause De-policing? Evidence from George Floyd and Police Shootings in Minneapolis

By Maya Mikdash and Reem Zaiour

AEA Papers and Proceedings, May 2022

We test for a "Ferguson Effect" by studying how police effort responds to different incidents of police violence. We do so using two settings in Minneapolis: (1) George Floyd's murder, and (2) police-involved shootings. We find that following George Floyd...

Law Enforcement Officers' Bills of Rights and Police Violence

By Jamein P. Cunningham, D. L. Feir, Rob Gillezeau, Matthew Harvey, and Abdul Nasser Rad

AEA Papers and Proceedings, May 2022

There is widespread concern among activists and legal scholars that Law Enforcement Officers' Bills of Rights (LEOBRs) limit police accountability and potentially impact the use of force. We exploit variation in the timing of the adoption of LEOBRs across...

Police Frisks

By David S. Abrams, Hanming Fang, and Priyanka Goonetilleke

AEA Papers and Proceedings, May 2022

The standard economic model of police frisks implies that the contraband hit rate should rise when the number of frisks falls, ceteris paribus. We provide the first empirical corroboration of such models of police behavior by examining changes in frisks f...

Measuring Police Performance: Public Attitudes Expressed in Twitter

By Taeho Kim

AEA Papers and Proceedings, May 2022

I study the viability of Twitter-based measures for measuring public attitudes about the police. I find that Twitter-based measures track Gallup's measure of public attitudes toward the police starting around 2014, when the Twitter user base stabilized, b...

Discrimination, Segregation, Integration, and Expropriation

By Geoffrey Fain Williams

AEA Papers and Proceedings, May 2022

I look at simple models of segregation and integration in a regional economy using a standard Cobb-Douglas production function and show that White capital does better in integration and White labor does better in segregation. I suggest that White capital ...

Media Access and Consumption in the Civil Rights Era

By Tianyi Wang

AEA Papers and Proceedings, May 2022

This paper uses the 1960 census and contemporary individual survey data to document the media landscape during the American civil rights movement. I find that southern Black households' TV ownership was much lower than those of other groups in the nation....

Sundown Towns and Racial Exclusion: The Southern White Diaspora and the "Great Retreat"

By Samuel Bazzi, Andreas Ferrara, Martin Fiszbein, Thomas Pearson, and Patrick A. Testa

AEA Papers and Proceedings, May 2022

This paper studies the rise of sundown towns—places where Blacks and other minorities were excluded after dark—outside the South after 1890. We provide a new dataset on the timing of sundown town establishment using full count census records. Using a ...

On the Impact of Federal Housing Policies on Racial Inequality

By Omer Ali

AEA Papers and Proceedings, May 2022

Using data on the value of Federal Housing Administration (FHA) mortgage insurance between 1935 and 1939, I estimate the effect of the agency's program on racial disparities in home ownership and home values. The distance between an FHA office and countie...

Inequality in the Effects of Primary School Closures Due to the COVID-19 Pandemic: Evidence from the Netherlands

By Carla Haelermans, Madelon Jacobs, Rolf van der Velden, Lynn van Vugt, and Sanne van Wetten

AEA Papers and Proceedings, May 2022

Using a large dataset of around 500,000 students from about 1,900 schools, this paper shows the effect of two school closures and 1.5 years of the COVID-19 pandemic on standardized learning growth for mathematics, reading, and spelling in Dutch primary ed...

More than Shelter: The Effect of Rental Eviction Moratoria on Household Well-Being

By Xudong An, Stuart A. Gabriel, and Nitzan Tzur-Ilan

AEA Papers and Proceedings, May 2022

We investigate the impact of the 2020 COVID-19 rental eviction moratoria on household well-being. Analysis of new panel data indicates that eviction moratoria reduced evictions and resulted in redirection of scarce household financial resources to immedia...

The Racial Wealth Gap and the Role of Firm Ownership

By Avi Lipton

AEA Papers and Proceedings, May 2022

This paper develops an overlapping generations model that isolates the impact of the US racial wealth gap in 1962 on the long-run dynamics of wealth. The model predicts that one component of the initial gap, firm ownership, coupled with the intergeneratio...

Measuring Changes in Disparity Gaps: An Application to Health Insurance

By Paul Goldsmith-Pinkham, Karen Jiang, Zirui Song, and Jacob Wallace

AEA Papers and Proceedings, May 2022

We propose a method for reporting how program evaluations reduce gaps between groups, such as the gender or Black-White gap. We first show that the reduction in disparities between groups can be written as the difference in conditional average treatment e...

Self-Employment and Migration: Evidence from Mexico

By Alejandro Gutierrez-Li

AEA Papers and Proceedings, May 2022

Mexico has one of the highest self-employment rates in the OECD. I study the relationship between business ownership and migration from Mexico to the United States using longitudinal data from the Mexican Migration Project (MMP). I find that the self-empl...

How Do Federal Policy Shocks to State Spending Impact Returns to Primary and Secondary Education?

By Miesha Jamell Williams

AEA Papers and Proceedings, May 2022

Using NIPA and IPEDS data from 2000 to 2017, this research employs a panel event-study VAR to determine the recursive impact of federal education policy on college enrollment and state spending on education. Specifically, this project focuses on race and ...

COVID-19 and Its Impact on Minority-Owned Banks

By Salvador Contreras and Amit Ghosh

AEA Papers and Proceedings, May 2022

Employing a difference-in-differences framework, we examine the effect of COVID-19 on various performance metrics of minority-owned banks relative to peer banks. We find little evidence of worsening performance of minority-owned banks, except for Asian-ow...