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Getting Permission

By Peicong Hu and Joel Sobel

American Economic Review: Insights, December 2022

A manager has access to expert advisers. The manager selects at most one project and can implement it only if one expert provides support. The game in which the manager consults experts simultaneously typically has multiple equilibria, including one in wh...

A Taste of Their Own Medicine: Guideline Adherence and Access to Expertise

By Amy Finkelstein, Petra Persson, Maria Polyakova, and Jesse M. Shapiro

American Economic Review: Insights, December 2022

We use administrative data from Sweden to study adherence to 63 medication-related guidelines. We compare the adherence of patients without personal access to medical expertise to that of patients with access, namely doctors and their close relatives. We ...

Legal Markets

By Gillian K. Hadfield

Journal of Economic Literature, December 2022

The existence of an effective legal system is assumed throughout economic analysis, and yet there has been little study of the economics of legal markets themselves. Research to date has focused narrowly on the economics of markets for lawyers. In this re...

Local Policy Choice: Theory and Empirics

By David R. Agrawal, William H. Hoyt, and John D. Wilson

Journal of Economic Literature, December 2022

This paper critically surveys the growing literature on the policy choices of local governments. First, we identify various reasons for local government policy interactions, including fiscal competition, bidding for firms, yardstick competition, expendi...

Measurement Systems

By Susanne Schennach

Journal of Economic Literature, December 2022

Economic models often depend on quantities that are unobservable, either for privacy reasons or because they are difficult to measure. Examples of such variables include human capital (or ability), personal income, unobserved heterogeneity (such as cons...

Carbon Taxes

By Govinda R. Timilsina

Journal of Economic Literature, December 2022

There is a growing interest in using carbon taxes to reduce greenhouse gas emissions, not only in industrialized economies but also in developing economies. Many countries have considered carbon pricing, including carbon taxes, as policy instruments to ...