Excessive Financing Costs in a Representative Agent Framework

By Maya Eden

American Economic Journal: Macroeconomics, April 2016

This paper highlights a pecuniary externality that results in excessive financing costs. Firms borrow to finance purchases of an inelastically supplied input, bidding up its price. Since higher input prices necessitate more debt obligations, this leads to...

Testing for Indeterminacy: An Application to U.S. Monetary Policy: Comment

By Andreas Beyer and Roger E. A. Farmer

American Economic Review, March 2007

Conditional Retrospective Voting in Large Elections

By Ignacio Esponda and Demian Pouzo

American Economic Journal: Microeconomics, May 2017

We introduce a solution concept in the context of large elections with private information by embedding a model of boundedly rational voters into an otherwise standard equilibrium setting. A retrospective voting equilibrium (RVE) formalizes the idea that ...

Beyond GDP? Welfare across Countries and Time

By Charles I. Jones and Peter J. Klenow

American Economic Review, September 2016

We propose a summary statistic for the economic well-being of people in a country. Our measure incorporates consumption, leisure, mortality, and inequality, first for a narrow set of countries using detailed micro data, and then more broadly using multi-c...

Optimal Expectations and Limited Medical Testing: Evidence from Huntington Disease

By Emily Oster, Ira Shoulson, and E. Ray Dorsey

American Economic Review, April 2013

We use novel data to study genetic testing among individuals at risk for Huntington disease (HD), a hereditary disease with limited life expectancy. Although genetic testing is perfectly predictive and carries little economic cost, presymptomatic testi...

Ex Ante Policy Evaluation, Structural Estimation and Model Selection

By Kenneth I. Wolpin

American Economic Review, May 2007

Why Do Firms Have "Purpose"? The Firm's Role as a Carrier of Identity and Reputation

By Rebecca Henderson and Eric Van den Steen

American Economic Review, May 2015

This article develops a theory in which a firm's adoption of a prosocial purpose can increase profitability by strengthening employees' reputation and identity—leading to higher effort and lower wages—as long as implementing purpose is costly ...

Gender Differences in the Allocation of Low-Promotability Tasks: The Role of Backlash

By Linda Babcock, Maria P. Recalde, and Lise Vesterlund

American Economic Review, May 2017

This paper examines whether backlash exacerbates gender differences in time spent on low-promotability tasks. We ask whether gender differences found in previous research--women receiving more requests than men to do these tasks and women being more likel...

Community Networks and the Process of Development

[Symposium: Social Networks]

By Kaivan Munshi

Journal of Economic Perspectives, Fall 2014

My objective in this paper is to lay the groundwork for a new network-based theory of economic development. The first step is to establish that community-based networks are active throughout the developing world. Plenty of anecdotal and descriptive eviden...

Editors' Introduction

By William R. Johnson and Samantha Bennett

American Economic Review, May 2010

The Enlightened Economy: An Economic History of Britain 1700-1850: Review Essay

By Gregory Clark

Journal of Economic Literature, March 2012

The British Industrial Revolution is the key break in world history. Yet the timing, location, and cause of this Revolution are unsolved puzzles. Joel Mokyr's book is one of a number of recent attempted solutions. He explains the Industrial Revolution thr...

Physician Agency and Adoption of Generic Pharmaceuticals

By Toshiaki Iizuka

American Economic Review, October 2012

I examine physician agency in health care services in the context of the choice between brand-name and generic pharmaceuticals. I examine micro-panel data from Japan, where physicians can legally make profits by prescribing and dispensing drugs. The resul...

Platform Competition under Asymmetric Information

By Hanna Halaburda and Yaron Yehezkel

American Economic Journal: Microeconomics, August 2013

We consider platform competition in a two-sided market, where the two sides (buyers and sellers) have ex-ante uncertainty and ex-post asymmetric information concerning the value of a new technology. We find that platform competition may lead to a market...

Corruption in Procurement and the Political Cycle in Tunneling: Evidence from Financial Transactions Data

By Maxim Mironov and Ekaterina Zhuravskaya

American Economic Journal: Economic Policy, May 2016

We provide evidence of corruption in allocation of public procurement and assess its efficiency. Firms with procurement revenue increase tunneling around regional elections, whereas neither tunneling of firms without procurement revenue, nor legitimate...

Endogenous Skill Acquisition and Export Manufacturing in Mexico

By David Atkin

American Economic Review, August 2016

This paper presents empirical evidence that the growth of export manufacturing in Mexico during a period of major trade reforms (the years 1986 to 2000) altered the distribution of education. I use variation in the timing of factory openings across commut...

Management Practices, Relational Contracts, and the Decline of General Motors

[Symposium: Manufacturing]

By Susan Helper and Rebecca Henderson

Journal of Economic Perspectives, Winter 2014

General Motors was once regarded as the best-managed and most successful firm in the world. However, between 1980 and 2009, GM's US market share fell from 46 to 20 percent, and in 2009 the firm went bankrupt. We argue that the conventional explanation f...

Income Opportunities and Sea Piracy in Indonesia: Evidence from Satellite Data

By Sebastian Axbard

American Economic Journal: Applied Economics, April 2016

The effect of climatic variation on conflict and crime is well established, but less is known about the mechanism through which this effect operates. This study contributes to the literature by exploiting a new source of exogenous variation in climate to...

Rethinking Protection of Those Displaced by Humanitarian Crises

By Susan F. Martin

American Economic Review, May 2016

In June 2015, the UN High Commissioner for Refugees announced a landmark event in the history of his organization. UNHCR estimated that there were more refugees and displaced persons than it had counted since its establishment in 1950--almost 60 million w...

Advancing Beyond Advances in Behavioral Economics

By Drew Fudenberg

Journal of Economic Literature, September 2006

This essay discusses the field of behavioral economics, with a focus on the papers in Advances in Behavioral Economics. These papers show that there is a body of “behavioral facts” that is both economically significant and regular enough to be ...

Discovering Diversity in Introductory Economics

By Robin L. Bartlett

Journal of Economic Perspectives, Spring 1996

Instructors can begin the process of integrating race and gender issues into introductory economics by reexamining their courses with a new lens of diversity. The content of introductory economics can be expanded by 'adding and stirring' race and gender d...