Labor Substitutability among Schooling Groups

By Mark Bils, Baris Kaymak, and Kai-Jie Wu

American Economic Journal: Macroeconomics

Given worldwide trends in education, wage premium for schooling, and real GDP, we derive a lower bound for the long-run elasticity of labor substitution across schooling groups of around 4, which is far higher than values commonly used in the literatur...

University Faculty Economics

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Associate/Full Professor Director of Housing and Neighborhoods

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Associate Professor/Full Professor Director of Economic Mobility

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More than Words: Leaders' Speech and Risky Behavior during a Pandemic

By Nicolás Ajzenman, Tiago Cavalcanti, and Daniel Da Mata

American Economic Journal: Economic Policy, August 2023

This paper investigates whether the anti-scientific rhetoric of modern populists can induce followers to engage in risky behavior. We gather electoral information, credit card expenses, and geo-localized mobile phone data for approximately 60 million devi...

Political leadership and anti-scientific messaging

[Research Highlight]

October 17, 2023

Do populist challenges to scientific recommendations lead citizens to adopt risky behavior?

Assistant Professor (TT) Financial Economics

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CSWEP Room for Nursing Mothers

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Call for Papers: 30th Annual Conference of the Multinational Finance Society

[News]

October 23, 2023

The submission deadline is January 15, 2024.

Cultural division in the United States

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Is American culture growing further apart?

Assistant Professor of Economics

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Front Matter

American Economic Journal: Microeconomics, November 2023

Trade-ins and Transaction Costs in the Market for Used Business Jets

By Charles Hodgson

American Economic Journal: Microeconomics, November 2023

Manufacturers of durable goods can encourage consumers facing transaction costs to upgrade by accepting used units as trade-ins. These "buyback schemes" increase demand for new units, but increase the supply of used units if trade-ins are resold. I invest...

Evaluating the Impact of Online Market Integration—Evidence from the EU Portable PC Market

By Néstor Duch-Brown, Lukasz Grzybowski, André Romahn, and Frank Verboven

American Economic Journal: Microeconomics, November 2023

We develop a framework to evaluate the impact of market integration, accounting for spillovers between multiple distribution channels. We adapt the standard random coefficients logit demand model to allow for substitution between channels and consumer arb...

Using Team Discussions to Understand Behavior in Indefinitely Repeated Prisoner's Dilemma Games

By David J. Cooper and John H. Kagel

American Economic Journal: Microeconomics, November 2023

We compare behavior of two person teams with individuals in indefinitely repeated prisoner dilemma games with perfect monitoring. Team discussions are used to understand the rationale underlying these choices and how these choices come about. There are th...

Supervised Machine Learning for Eliciting Individual Demand

By John A. Clithero, Jae Joon Lee, and Joshua Tasoff

American Economic Journal: Microeconomics, November 2023

The canonical direct-elicitation approach for measuring individuals' valuations for goods is the Becker-DeGroot-Marschak procedure, which generates willingness-to-pay (WTP) values that are imprecise and systematically biased. We show that enhancing elicit...

Monopolistic Competition and Efficiency under Firm Heterogeneity and Nonadditive Preferences

By Kyle Bagwell and Seung Hoon Lee

American Economic Journal: Microeconomics, November 2023

We consider the single-sector version of the Melitz-Ottaviano model of monopolistic competition with heterogeneous firms. We characterize the first-best and market allocations. We find that the market provides the first-best level of entry but too little ...

Multihoming and Oligopolistic Platform Competition

By Tat-How Teh, Chunchun Liu, Julian Wright, and Junjie Zhou

American Economic Journal: Microeconomics, November 2023

We provide a general framework to analyze competition between any number of symmetric two-sided transaction platforms, in which buyers and sellers can multihome. We show how key primitives such as the number of platforms, the fraction of buyers that find ...

Monitor Reputation and Transparency

By Iván Marinovic and Martin Szydlowski

American Economic Journal: Microeconomics, November 2023

We study the disclosure policy of a regulator overseeing a monitor with reputation concerns. The monitor faces a manager, who chooses how much to manipulate based on the monitor's reputation. Reputational incentives are strongest for intermediate reputati...

Slope Takers in Anonymous Markets

By Daniel Quint and Marek Weretka

American Economic Journal: Microeconomics, November 2023

We present a learning-based selection argument for Linear Bayesian Nash equilibrium in a Walrasian auction. Endowments vary stochastically; traders model residual supply as linear, estimate its slope from past trade data, and periodically update these est...