This paper examines how employer- and worker-specific productivity shocks transmit to earnings and employment. We develop an equilibrium search model and characterize the optimal contract offered by firms. Risk-neutral firms provide partial insurance agai...

www.aeaweb.org/articles?id=10.1257/aer.20161622

Heterogeneous Global Booms and Busts

By Maryam Farboodi and Péter Kondor

American Economic Review, July 2022

We investigate the heterogeneous boom and bust patterns across countries that emerge as a result of global shocks. Our analysis sheds light on the emergence of core and periphery countries, and the joint determination of the depth of recessions and tightn...

www.aeaweb.org/articles?id=10.1257/aer.20181830

Using the Retail Distribution of Sellers to Impute Expenditure Shares

By Alexis Antoniades, Robert C. Feenstra, and Mingzhi (Jimmy) Xu

American Economic Review, July 2022

Many price indices must be constructed without quantity data at the elementary level. The paper shows that for some consumer goods in the United States and other countries, one can approximate expenditure shares using weights derived from the retail distr...

www.aeaweb.org/articles?id=10.1257/aer.20190896

Monopsony in the US Labor Market

By Chen Yeh, Claudia Macaluso, and Brad Hershbein

American Economic Review, July 2022

This paper quantifies employer market power in US manufacturing and how it has changed over time. Using administrative data, we estimate plant-level markdowns—the ratio between a plant's marginal revenue product of labor and its wage. We find most manuf...

www.aeaweb.org/articles?id=10.1257/aer.20200025

When Choices Are Mistakes

By Kirby Nielsen and John Rehbeck

American Economic Review, July 2022

Using a laboratory experiment, we identify whether decision-makers consider it a mistake to violate canonical choice axioms. To do this, we incentivize subjects to report axioms they want their decisions to satisfy. Then, subjects make lottery choices whi...

www.aeaweb.org/articles?id=10.1257/aer.20201550

Belief Distortions and Macroeconomic Fluctuations

By Francesco Bianchi, Sydney C. Ludvigson, and Sai Ma

American Economic Review, July 2022

This paper combines a data-rich environment with a machine learning algorithm to provide new estimates of time-varying systematic expectational errors ("belief distortions") embedded in survey responses. We find sizable distortions even for professional f...

www.aeaweb.org/articles?id=10.1257/aer.20201713

Factor Market Failures and the Adoption of Irrigation in Rwanda

By Maria Jones, Florence Kondylis, John Loeser, and Jeremy Magruder

American Economic Review, July 2022

Factor market failures can limit adoption of profitable technologies. We leverage a plot-level spatial regression discontinuity design in the context of irrigation use by farmers provided free access to water. Using irrigation boosts profits by 43–62 pe...

www.aeaweb.org/articles?id=10.1257/aer.20210059

Monetary Policy with Opinionated Markets

By Ricardo J. Caballero and Alp Simsek

American Economic Review, July 2022

We build a model in which the Fed and the market disagree about future aggregate demand. The market anticipates monetary policy "mistakes," which affect current demand and induce the Fed to partially accommodate the market's view. The Fed expects to imple...

www.aeaweb.org/articles?id=10.1257/aer.20210271

Estimating Spillovers from Publicly Funded R&D: Evidence from the US Department of Energy

By Kyle R. Myers and Lauren Lanahan

American Economic Review, July 2022

We quantify the magnitude of R&D spillovers created by grants to small firms from the US Department of Energy. Our empirical strategy leverages variation due to state-specific matching policies, and we develop a new approach to measuring both geographic a...

www.aeaweb.org/articles?id=10.1257/aer.20210678

Digital Addiction

By Hunt Allcott, Matthew Gentzkow, and Lena Song

American Economic Review, July 2022

Many have argued that digital technologies such as smartphones and social media are addictive. We develop an economic model of digital addiction and estimate it using a randomized experiment. Temporary incentives to reduce social media use have persistent...

www.aeaweb.org/articles?id=10.1257/aer.20210867

Front Matter

American Economic Review, December 2008

The front matter for the December 2008 issue contains the table of contents as well as information on Oliver E. Williamson, Distinguished Fellow, 2007.

www.aeaweb.org/articles?id=10.1257/aer.98.5.i