American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Articles Racial Discrimination in the Labor Market: Theory and Empirics YacineAït-SahaliaPrinceton U JeanJacodU Paris VI, Pierre and Marie Curie 959 1006 We review theories of race discrimination in the labor market. Taste-based models can generate wage and unemployment duration differentials when combined with either random or directed search even when strong prejudice is not widespread, but no existing model explains the unemployment rate differential. Models of statistical discrimination based on differential observability of productivity across races can explain the pattern and magnitudes of wage differentials but do not address employment and unemployment. At their current state of development, models of statistical discrimination based on rational stereotypes have little empirical content. It is plausible that models combining elements of the search models with statistical discrimination could fit the data. We suggest possible avenues to be pursued and comment briefly on the implication of existing theory for public policy. (JEL J15, J31, J64, J71) http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.959 10.1257/jel.50.4.959 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Articles Analyzing the Spectrum of Asset Returns: Jump and Volatility Components in High Frequency Data EstherDufloMIT 1007 50 This paper reports some of the recent developments in the econometric analysis of semimartingales estimated using high frequency financial returns. It describes a simple yet powerful methodology to decompose asset returns sampled at high frequency into their base components (continuous, small jumps, large jumps), determine the relative magnitude of the components, and analyze the finer characteristics of these components such as the degree of activity of the jumps. We incorporate to effect of market microstructure noise on the test statistics, apply the methodology to high frequency individual stock returns, transactions and quotes, stock index returns and compare the qualitative features of the estimated process for these different data and discuss the economic implications of the results.( JEL C58, G12, G13) http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.1007 10.1257/jel.50.4.1007 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Articles Women Empowerment and Economic Development AndreiShleiferHarvard U 1051 79 Women empowerment and economic development are closely related: in one direction, development alone can play a major role in driving down inequality between men and women; in the other direction, empowering women may benefit development. Does this imply that pushing just one of these two levers would set a virtuous circle in motion? This paper reviews the literature on both sides of the empowerment–development nexus, and argues that the interrelationships are probably too weak to be self-sustaining, and that continuous policy commitment to equality for its own sake may be needed to bring about equality between men and women. (JEL I14, I24, I32, I38, J13, J16, O15) http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.1051 10.1257/jel.50.4.1051 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Articles Psychologists at the Gate: A Review of Daniel Kahneman's Thinking, Fast and Slow Alan M.TaylorU VA 1080 91 The publication of Daniel Kahneman's book, Thinking, Fast and Slow, is a major intellectual event. The book summarizes, but also integrates, the research that Kahneman has done over the past forty years, beginning with his path-breaking work with the late Amos Tversky. The broad theme of this research is that human beings are intuitive thinkers and that human intuition is imperfect, with the result that judgments and choices often deviate substantially from the predictions of normative statistical and economic models. In this review, I discuss some broad ideas and themes of the book, describe some economic applications, and suggest future directions for research that the book points to, especially in decision theory. (JEL A12, D03, D80, D87) http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.1080 10.1257/jel.50.4.1080 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Articles Global Financial Stability and the Lessons of History: A Review of Carmen M. Reinhart and Kenneth S. Rogoff's This Time Is Different: Eight Centuries of Financial Folly 1092 1105 In Reinhart and Rogoff's economic history This Time is Different, the authors provide a panoramic view of crises from the Middle Ages to the modern era. Published just as the current global financial storm arrived, the book quickly showed how history could provide not just useful perspective but also, as we can now see, very prescient guidance in the aftermath. In the longer run, the book serves to inspire ongoing work in long-run macro-financial history. (JEL F30, G01, G20, N20) http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.1092 10.1257/jel.50.4.1092 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Journal Article Book Reviews 1106 55 http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.1106 10.1257/jel.50.4.1106 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Journal Article Annotated Listing of New Books 1156 1265 http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.1156 10.1257/jel.50.4.1156 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Journal Article JEL Classification System 1266 1280 http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.1266 10.1257/jel.50.4.1266 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Journal Article Doctoral Dissertations in Economics KevinLangBoston U and IZA, Bonn Jee-Yeon K.LehmannU Houston 1281 1310 http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.1281 10.1257/jel.50.4.1281 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 50 4 December 2012 http://www.aeaweb.org/issue.php?journal=JEL&volume=50&issue=4 Journal Article Front Matter 1 6 http://www.aeaweb.org/articles.php?doi=10.1257/jel.50.4.1 10.1257/jel.50.4.1