Occupational Matching and Cities

By Theodore Papageorgiou

American Economic Journal: Macroeconomics, July 2022

In this paper, I document that workers in larger cities have significantly more occupational options than workers in smaller ones. They are able to form better occupational matches and earn higher wages. I also note differences in occupation reallocation ...

The urban wage premium

[Research Highlight]

August 04, 2022

Why do workers in larger cities make more money than their peers in smaller cities?

CSMGEP Profile: Adela de la Torre

[Page]

Front Matter

Journal of Economic Perspectives, Summer 2022

Measuring Human Capital

[Symposium: Human Capital]

By Katharine G. Abraham and Justine Mallatt

Journal of Economic Perspectives, Summer 2022

We review the existing literature on the measurement of human capital. Broadly speaking, economists have proposed three approaches to constructing human capital measures—the indicator approach, the cost approach, and the income approach. Studies emplo...

Expected and Realized Inflation in Historical Perspective

[Symposium: Inflation Expectations]

By Carola Binder and Rupal Kamdar

Journal of Economic Perspectives, Summer 2022

This paper provides historical context for the relationship between expected and realized inflation. We begin with a discussion of early theoretical thought about how inflation expectations are formed. Then, we discuss survey- and asset-based measures o...

The Subjective Inflation Expectations of Households and Firms: Measurement, Determinants, and Implications

[Symposium: Inflation Expectations]

By Michael Weber, Francesco D'Acunto, Yuriy Gorodnichenko, and Olivier Coibion

Journal of Economic Perspectives, Summer 2022

Households' and firms' subjective inflation expectations play a central role in macroeconomic and intertemporal microeconomic models. We discuss how subjective inflation expectations are measured, the patterns they display, their determinants, and how the...

Blending Theory and Data: A Space Odyssey

[Symposium: Methods in Applied Micro]

By Dave Donaldson

Journal of Economic Perspectives, Summer 2022

This article describes methods used in the field of spatial economics that combine insights from economic theory and evidence from data in order to answer counterfactual questions. I outline a general framework that emphasizes three elements: a specific...

Principles for Combining Descriptive and Model-Based Analysis in Applied Microeconomics Research

[Symposium: Methods in Applied Micro]

By Neale Mahoney

Journal of Economic Perspectives, Summer 2022

In this article, I offer guidance on how to combine descriptive and model-based empirical analysis within a paper. Drawing on examples from three recently published applied microeconomics papers, I argue that it is important to create a tight link between...

Overreaction and Diagnostic Expectations in Macroeconomics

By Pedro Bordalo, Nicola Gennaioli, and Andrei Shleifer

Journal of Economic Perspectives, Summer 2022

We present the case for the centrality of overreaction in expectations for addressing important challenges in finance and macroeconomics. First, non-rational expectations by market participants can be measured and modeled in ways that address some of th...

Retrospectives: On the Evolution of the Rules versus Discretion Debate in Monetary Policy

By Harris Dellas and George S. Tavlas

Journal of Economic Perspectives, Summer 2022

Episodes of macroeconomic upheaval associated with monetary policy failure have provided the stage for important debates on rules versus discretion. We discuss the main features, results, commonalities, and differences in the debates that emerged after ...

Recommendations for Further Reading

By Timothy Taylor

Journal of Economic Perspectives, Summer 2022

The Economics of Intangible Capital

[Symposium: Intangible Capital]

By Nicolas Crouzet, Janice C. Eberly, Andrea L. Eisfeldt, and Dimitris Papanikolaou

Journal of Economic Perspectives, Summer 2022

Intangible assets are a large and growing part of firms' capital stocks. Intangibles are accumulated via investment--foregoing consumption today for output in the future—but they lack a physical presence. Rather than stopping with this "lack," we inst...

Intangible Capital and Modern Economies

[Symposium: Intangible Capital]

By Carol Corrado, Jonathan Haskel, Cecilia Jona-Lasinio, and Massimiliano Iommi

Journal of Economic Perspectives, Summer 2022

The production of goods and services is central to understanding economies. The textbook description of a firm, typically in agriculture or manufacturing, focuses on its physical "tangible" capital (machines), labor (workers), and the state of "know-how...

Marketing Investment and Intangible Brand Capital

[Symposium: Intangible Capital]

By Bart J. Bronnenberg, Jean-Pierre Dubé, and Chad Syverson

Journal of Economic Perspectives, Summer 2022

US companies invested over $500 billion in 2021 in intangible brand capital, over 2% of GDP. During the past decade, US companies have also been growing their internal marketing capabilities, an often overlooked source of human capital. We discuss the pri...

Four Facts about Human Capital

[Symposium: Human Capital]

By David J. Deming

Journal of Economic Perspectives, Summer 2022

This paper synthesizes what economists have learned about human capital since Becker (1962) into four stylized facts. First, human capital explains at least one-third of the variation in labor earnings within countries and at least half of the variation a...

The Post-Pandemic Economy, Indian Development, and Fixing Downtown Freeways

[News]

July 20, 2022

Reading recommendations from Timothy Taylor, managing editor of the Journal of Economic Perspectives.

The mixed effects of community colleges

[Page]

Do two-year colleges boost earnings for those who attend?

AEA Award and Grant Opportunities – Act Now

[News]

August 10, 2022

View the Member Announcement from August 15, 2022.

AEA Award and Grant Opportunities – Act Now

[News]

August 16, 2022

View the communication to Department Chairs from August 16, 2022