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Spending and Job-Finding Impacts of Expanded Unemployment Benefits: Evidence from Administrative Micro Data

By Peter Ganong, Fiona Greig, Pascal Noel, Daniel M. Sullivan, and Joseph Vavra

American Economic Review

We show that the largest increase in unemployment benefits in U.S. history had large spending impacts and small jobfinding impacts. This finding has three implications. First, increased benefits were important for explaining aggregate spending dynamic...

The A.I. Dilemma: Growth versus Existential Risk

By Charles I. Jones

American Economic Review: Insights

Advances in artificial intelligence (A.I.) are a double-edged sword. On the one hand, they may increase economic growth as A.I. augments our ability to innovate. On the other hand, many experts worry that these advances entail existential risk: creatin...

Betting on the House: Subjective Expectations and Market Choices

By Nicolas Bottan and Ricardo Perez-Truglia

American Economic Journal: Applied Economics

Home price expectations play a central role in macroeconomics and finance. However, there is little direct evidence on their effect on market choices. We provide causal evidence using a large-scale, high-stakes field experiment in the U.S. We sent letters...

Product variety and congestion effects online

[Research Highlight]

June 17, 2024

The growth of mobile apps illustrates the importance of congestion externalities for online markets.

Variety-Based Congestion in Online Markets: Evidence from Mobile Apps

By Daniel Ershov

American Economic Journal: Microeconomics, May 2024

In many online markets, consumers have to spend time and effort browsing through products. The addition of new products could make other products less visible, creating congestion externalities. Using Android app store data, I take advantage of a natural ...

Revealing Choice Bracketing

By Andrew Ellis and David J. Freeman

American Economic Review

Experiments suggest that people fail to take into account interdependencies between their choices—they do not broadly bracket. Researchers often instead assume that people narrowly bracket, but existing designs do not test it. We design a novel experi...

The Simpler the Better? Threshold Effects of Energy Labels on Property Prices and Energy-Efficiency Investments

By Rodolfo Sejas-Portillo, Mirko Moro, and Till Stowasser

American Economic Journal: Applied Economics

Using British data on over 7 million residential-property sales, we find that the provision of simplified energy-efficiency (EE) information leads to important market effects. UK legislation requires the use of an energy label that shows an EE rating s...

Dividend Taxation and Firm Performance with Heterogeneous Payout Responses

By Katarzyna Bilicka, İrem Güçeri, and Evangelos Koumanakos

American Economic Journal: Economic Policy

We analyze the performance of firms that were differentially affected by an unexpected tax on dividends before the Global Financial Crisis. We use exogenous policy variation for firms with different legal statuses and financial year-end dates to separat...

Estimating Models of Supply and Demand: Instruments and Covariance Restrictions

By Alexander MacKay and Nathan H. Miller

American Economic Journal: Microeconomics

We consider the identification of empirical models of supply and demand with imperfect competition. We show that a restriction on the covariance between unobserved demand and cost shocks can resolve endogeneity and identify the price parameter. We dem...

Experimentation in Networks

By Simon Board and Moritz Meyer-ter-Vehn

American Economic Review

We propose a model of strategic experimentation on social networks in which forward-looking agents learn from their own and neighbors’ successes. In equilibrium, private discovery is followed by social diffusion. Social learning crowds out own experim...

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