Modeling the Transition to a New Economy: Lessons from Two Technological Revolutions

By Andrew Atkeson and Patrick J. Kehoe

American Economic Review, March 2007

Many view the period after the Second Industrial Revolution as a paradigm of a transition to a new economy following a technological revolution, including the Information Technology Revolution. We build a quantitative model of diffusion and growth duri...

The Cross Section of Foreign Currency Risk Premia and Consumption Growth Risk

By Hanno Lustig and Adrien Verdelhan

American Economic Review, March 2007

Aggregate consumption growth risk explains why low interest rate currencies do not appreciate as much as the interest rate differential and why high interest rate currencies do not depreciate as much as the interest rate differential. Domestic investor...

Market Share Dynamics and the "Persistence of Leadership" Debate

By John Sutton

American Economic Review, March 2007

A new 45-industry, 23-year, dataset for Japan is used to investigate the duration of industry leadership. A new scaling relationship linking a firm's current market share with the standard deviation of market share changes is reported. This relationshi...

Imprecision as an Account of the Preference Reversal Phenomenon

By David J. Butler and Graham C. Loomes

American Economic Review, March 2007

Many individuals' choices and valuations involve a degree of uncertainty/imprecision. This paper reports an experiment designed to obtain some measure of imprecision and to examine the extent to which it can explain preference reversals of two opposite...

Do Workers Work More if Wages Are High? Evidence from a Randomized Field Experiment

By Ernst Fehr and Lorenz Goette

American Economic Review, March 2007

Most previous studies on intertemporal labor supply found very small or insignificant substitution effects. It is possible that these results are due to constraints on workers' labor supply choices. We conducted a field experiment in a setting in which ...

The Effect of Court-Ordered Hiring Quotas on the Composition and Quality of Police

By Justin McCrary

American Economic Review, March 2007

Arguably the most aggressive affirmative action program ever implemented in the United States was a series of court-ordered racial hiring quotas imposed on municipal police departments. My best estimate of the effect of court-ordered affirmative action...

The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather

By Olivier Deschênes and Michael Greenstone

American Economic Review, March 2007

This paper measures the economic impact of climate change on US agricultural land by estimating the effect of random year-to-year variation in temperature and precipitation on agricultural profits. The preferred estimates indicate that climate change w...

What Are Stock Investors’ Actual Historical Returns? Evidence from Dollar-Weighted Returns

By Ilia D. Dichev

American Economic Review, March 2007

The existing literature typically does not differentiate between security returns and the returns of investors in these securities. This study clarifies that investor and security returns differ because of the timing and magnitude of investor capital f...

Welfare without Happiness

By Faruk Gul and Wolfgang Pesendorfer

American Economic Review, May 2007

Aid Effectiveness – Opening the Black Box

By François Bourguignon and Mark Sundberg

American Economic Review, May 2007

Random Walk Expectations and the Forward Discount Puzzle

By Philippe Bacchetta and Eric van Wincoop

American Economic Review, May 2007

Neuroeconomic Studies of Impulsivity: Now or Just as Soon as Possible?

By Paul William Glimcher, Joseph Kable, and Kenway Louie

American Economic Review, May 2007

What Does Performance in Graduate School Predict? Graduate Economics Education and Student Outcomes

By Susan Athey, Lawrence F. Katz, Alan B. Krueger, Steven Levitt, and James Poterba

American Economic Review, May 2007

Minutes of the Annual Meeting

American Economic Review, May 2007

Report of the Committee on Economic Education

American Economic Review, May 2007

Report of the Committee on the Status of Women in the Economics Profession

American Economic Review, May 2007

A Review of Richard Layard, Stephen Nickell, and Richard Jackman's Unemployment: Macroeconomic Performance and the Labour Market

By Olivier Blanchard

Journal of Economic Literature, June 2007

Unemployment: Macroeconomic Performance and the Labour Market by Richard Layard, Stephen Nickell, and Richard Jackman (Oxford University Press 2005) is the second edition of a book first published in 1991. The second edition is identical to the fi...

The Timing of Monetary Policy Shocks

By Giovanni Olivei and Silvana Tenreyro

American Economic Review, June 2007

A vast empirical literature has documented delayed and persistent effects of monetary policy shocks on output. We show that this finding results from the aggregation of output impulse responses that differ sharply depending on the timing of the shock. ...

Job Displacement Risk and the Cost of Business Cycles

By Tom Krebs

American Economic Review, June 2007

This paper analyzes the welfare costs of business cycles when workers face uninsurable job displacement risk. The paper uses a simple macroeconomic model with incomplete markets to show that cyclical variations in the long-term earnings losses of displ...

Mismatch

By Robert Shimer

American Economic Review, September 2007

This paper develops a dynamic model of mismatch. Workers and jobs are randomly allocated to labor markets. Each market clears, but some have excess (unemployed) workers and some have excess (vacant) jobs. As workers and jobs switch markets, unemployed ...