Toward National Well-Being Accounts

By Daniel Kahneman, Alan B. Krueger, David Schkade, Norbert Schwarz, and Arthur Stone

American Economic Review, May 2004

Incentives and Discrimination

By Eyal Winter

American Economic Review, June 2004

Aid, Policies, and Growth: Comment

By William Easterly, Ross Levine, and David Roodman

American Economic Review, June 2004

Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach

By Xavier Sala-I-Martin, Gernot Doppelhofer, and Ronald I. Miller

American Economic Review, September 2004

This paper examines the robustness of explanatory variables in cross-country economic growth regressions. It introduces and employs a novel approach, Bayesian Averaging of Classical Estimates (BACE), which constructs estimates by averaging OLS coefficient...

Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments

By Dirk Engelmann and Martin Strobel

American Economic Review, September 2004

We present simple one-shot distribution experiments comparing the relative importance of efficiency concerns, maximin preferences, and inequality aversion, as well as the relative performance of the fairness theories by Gary E Bolton and Axel Ockenfels an...

Desegregation and Black Dropout Rates

By Jonathan Guryan

American Economic Review, September 2004

In 1954 the United States Supreme Court ruled that separate schools for black and white children were "inherently unequal." This paper studies whether the desegregation plans of the next 30 years benefited black and white students in desegregated school d...

The Macroeconomics of Labor and Credit Market Imperfections

By Etienne Wasmer and Philippe Weil

American Economic Review, September 2004

Credit market imperfections influence the labor market and aggregate economic activity. In turn, macroeconomic factors have an impact on the credit sector. To assess these effects in a tractable general-equilibrium framework, we introduce endogenous searc...

The Cost of Business Cycles Under Endogenous Growth

By Gadi Barlevy

American Economic Review, September 2004

Robert E. Lucas, Jr. argued that the welfare gains from reducing aggregate consumption volatility are negligible. Subsequent work that revisited his calculation continued to find small welfare benefits, further reinforcing the perception that business cyc...

Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination

By Marianne Bertrand and Sendhil Mullainathan

American Economic Review, September 2004

We study race in the labor market by sending fictitious resumes to help-wanted ads in Boston and Chicago newspapers. To manipulate perceived race, resumes are randomly assigned African-American- or White-sounding names. White names receive 50 percent more...

Insurance, Consumption, and Saving: A Dynamic Analysis in Continuous Time

By R.A. Somerville

American Economic Review, September 2004

This paper shows how the demand for non-life insurance interacts with consumption and saving. The analysis is set in continuous time, using the maximum principle. When insurance is actuarially fair, the insurance and consumption decisions are separable. W...

Real Exchange Rate Fluctuations and the Dynamics of Retail Trade Industries on the U. S.-Canada Border

By Jeffrey R. Campbell and Beverly Lapham

American Economic Review, September 2004

Optimal Monetary Policy with Relative Price Distortions

By Tack Yun

American Economic Review, March 2005

This paper analyzes optimal monetary policy in a sticky price model with Calvo-type staggered price-setting. In the paper, the optimal monetary policy maximizes the expected utility of a representative household without having to rely on a set of linearly...

Vanishing Children: From High Unemployment to Low Fertility in Developed Countries

By Alicia Adsera

American Economic Review, May 2005

What Explains Differences in Smoking, Drinking, and Other Health-Related Behaviors?

By David M. Cutler and Edward Glaeser

American Economic Review, May 2005

The Cost of Reducing Gasoline Consumption

By Sarah E. West and Roberton C. Williams III

American Economic Review, May 2005

Fear and Greed in Financial Markets: A Clinical Study of Day-Traders

By Andrew W. Lo, Dmitry V. Repin, and Brett N. Steenbarger

American Economic Review, May 2005

The Bundling of Academic Journals

By Aaron S. Edlin and Daniel L. Rubinfeld

American Economic Review, May 2005

Understanding European Real Exchange Rates

By Mario J. Crucini, Chris I. Telmer, and Marios Zachariadis

American Economic Review, June 2005

We study good-by-good deviations from the Law-of-One-Price (LOP) for over 1,800 retail goods and services between all European Union (EU) countries for the years 1975, 1980, 1985, and 1990. We find that for each of these years, after we control for differ...

Unnatural Selection: Perverse Incentives and the Misallocation of Credit in Japan

By Joe Peek and Eric S. Rosengren

American Economic Review, September 2005

We examine the misallocation of credit in Japan associated with the perverse incentives faced by banks to provide additional credit to the weakest firms. Firms are more likely to receive additional bank credit if they are in poor financial condition, beca...

Services as Experience Goods: An Empirical Examination of Consumer Learning in Automobile Insurance

By Mark Israel

American Economic Review, December 2005

Theoretical work on experience goods sets out three empirical questions. How accurate is information at initial purchase? How rapidly do consumers learn from product experiences? And how much impact does learning have on purchase decisions? I answer these...