Did the Elimination of Mandatory Retirement Affect Faculty Retirement?

By Orley Ashenfelter and David Card

American Economic Review, September 2002

A special exemption from the 1986 Age Discrimination Act allowed colleges and universities to enforce mandatory retirement of faculty at age 70 until 1994. We construct a survey that permits us to compare faculty turnover rates before and after the law ch...

The High-Frequency Effects of Dollar Swap Lines

By Rohan Kekre and Moritz Lenel

American Economic Review: Insights, March 2025

We study the effects of dollar swap lines using high-frequency responses in asset prices around policy announcements. News about expanded dollar swap lines causes a reduction in liquidity premia, compression of deviations from covered interest parity, and...

Who Benefits from Online Gig Economy Platforms?

By Christopher T. Stanton and Catherine Thomas

American Economic Review, June 2025

Online labor platforms for short-term remote work have many more job seekers than available jobs. Despite their relative abundance, workers capture a substantial share of the surplus from transactions. We draw this conclusion from demand estimates that im...

Nominal Devaluations, Inflation, and Inequality

By Andrés Blanco, Andrés Drenik, and Emilio Zaratiegui

American Economic Journal: Macroeconomics, July 2025

We study the distribution of labor income during large devaluations. Across countries, inequality falls after large devaluations within the context of a surge in inflation and a fall and subsequent recovery of real labor income. To better understand inequ...

Measuring Market Inefficiencies in California's Restructured Wholesale Electricity Market

By Severin Borenstein, James B. Bushnell, and Frank A. Wolak

American Economic Review, December 2002

We present a method for decomposing wholesale electricity payments into production costs, inframarginal competitive rents, and payments resulting from the exercise of market power. Using data from June 1998 to October 2000 in California, we find significa...

Transport Costs and the Geography of Arbitrage in Eighteenth-Century China

By Carol H. Shiue

American Economic Review, December 2002

Trade has been considered a condition for growth and development, a view that might have merits in explaining the rise of the Western world. I use a new data set from archival sources of eighteenth-century China to revisit this question. This analysis sug...

Real Exchange Rates and Endogenous Productivity

By Nils Gornemann, Pablo A. Guerrón Quintana, and Felipe Saffie

American Economic Journal: Macroeconomics, October 2025

Two-thirds of the real exchange rate's (RER's) volatility occurs at low frequencies. We provide empirical evidence that links movements in the RER to changes in research and development spending and patents. A two-country real business cycle model with en...

Market Segmentation and International Bond Prices: The Role of ECB Asset Purchases

By Ester Faia, Juliana Salomao, and Alexia Ventula Veghazy

American Economic Journal: Macroeconomics, October 2025

We estimate euro-dollar yields differences, hedged and unhedged, with euro area confidential corporate bond holdings data. We find that euro yields significantly decline relative to dollar yields—more for securities in the portfolios of investors that p...

Micro Effects of Macro Announcements: Real-Time Price Discovery in Foreign Exchange

By Torben G. Andersen, Tim Bollerslev, Francis X. Diebold, and Clara Vega

American Economic Review, March 2003

Using a new data set consisting of six years of real-time exchange-rate quotations, macroeconomic expectations, and macroeconomic realizations, we characterize the conditional means of U.S. dollar spot exchange rates. In particular, we find that announcem...

A Preferred-Habitat Model of Term Premia, Exchange Rates, and Monetary Policy Spillovers

By Pierre-Olivier Gourinchas, Walker Ray, and Dimitri Vayanos

American Economic Review, November 2025

We develop a two-country model in which currency and bond markets are populated by different investor clienteles, and segmentation is partly overcome by arbitrageurs with limited capital. Risk premia in our model are time-varying, connected across markets...

Dynamic Speculative Attacks

By Christophe Chamley

American Economic Review, June 2003

This paper presents a model of rational Bayesian agents with speculative attacks in a regime of exchange rate which is pegged within a band. Speculators learn from the observation of the exchange rate within the band whether their mass is sufficiently lar...

Exchange-Rate Policy and the Zero Bound on Nominal Interest Rates

By Günter Coenen and Volker W. Wieland

American Economic Review, May 2004

A Scapegoat Model of Exchange-Rate Fluctuations

By Philippe Bacchetta and Eric Van Wincoop

American Economic Review, May 2004

Accounting for Exchange-Rate Variability in Present-Value Models When the Discount Factor Is Near 1

By Charles Engel and Kenneth D. West

American Economic Review, May 2004

Can Portfolio Rebalancing Explain the Dynamics of Equity Returns, Equity Flows, and Exchange Rates?

By Harald Hau and Hélène Rey

American Economic Review, May 2004

How Much Equity Does the Government Hold?

By Alan Auerbach

American Economic Review, May 2004

Balance Sheets and Exchange Rate Policy

By Luis Felipe Céspedes, Roberto Chang, and Andrés Velasco

American Economic Review, September 2004

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

Rationalizing the Penn World Table: True Multilateral Indices for International Comparisons of Real Income

By J. Peter Neary

American Economic Review, December 2004

Real incomes are routinely compared internationally using methods that "correct" for deviations from purchasing power parity. The most widely used of these is the Geary method which, though theoretically suspect, underlies the Penn World Table. This paper...

Extracting Inflation from Stock Returns to Test Purchasing Power Parity

By Bhagwan Chowdhry, Richard Roll, and Yihong Xia

American Economic Review, March 2005

Relative purchasing power parity (PPP) holds for pure price inflations, which affect prices of all goods and services by the same proportion, while leaving relative prices unchanged. Pure price inflations also affect nominal returns of all traded financia...