Dynamic Persuasion with Outside Information

By Jacopo Bizzotto, Jesper Rüdiger, and Adrien Vigier

American Economic Journal: Microeconomics, February 2021

A principal seeks to persuade an agent to accept an offer of uncertain value before a deadline expires. The principal can generate information, but exerts no control over exogenous outside information. The combined effect of the deadline and outside infor...

Social Clubs and Social Networks

By Chaim Fershtman and Dotan Persitz

American Economic Journal: Microeconomics, February 2021

We present a strategic network formation model based on membership in clubs. Individuals choose affiliations. The set of all memberships induces a weighted network where two individuals are directly connected if they share a club. Two individuals may also...

Full Implementation under Ambiguity

By Huiyi Guo and Nicholas C. Yannelis

American Economic Journal: Microeconomics, February 2021

This paper introduces the maxmin expected utility framework into the problem of fully implementing a social choice set as ambiguous equilibria. Our model incorporates the Bayesian framework and the Wald-type maxmin preferences as special cases and provide...

A Leverage Theory of Tying in Two-Sided Markets with Nonnegative Price Constraints

By Jay Pil Choi and Doh-Shin Jeon

American Economic Journal: Microeconomics, February 2021

Motivated by recent antitrust cases in markets with zero-pricing, we develop a leverage theory of tying in two-sided markets. In the presence of the nonnegative price constraint, the Chicago school critique of tie-ins fails to hold. In the independent pro...

Liability Insurance: Equilibrium Contracts under Monopoly and Competition

By Jorge Lemus, Emil Temnyalov, and John L. Turner

American Economic Journal: Microeconomics, February 2021

In liability lawsuits (e.g., patent infringement), a plaintiff demands compensation from a defendant, and the parties often negotiate a settlement to avoid a costly trial. Liability insurance creates bargaining leverage for the defendant in this settlemen...

Wait-and-See or Step In? Dynamics of Interventions

By Dana Foarta and Takuo Sugaya

American Economic Journal: Microeconomics, February 2021

We study the optimal intervention policy to stop projects in a relational contract between a principal and a policymaker. The policymaker is privately informed about his ability and privately chooses how much effort to exert. Before a project is completed...

Mobilizing the masses to murder

[Research Highlight]

January 28, 2021

How did political elites in Rwanda get civilians to participate in genocide?

Immigrants and upward mobility

[Page]

Children of foreign-born parents climb the income ladder faster than kids of US-born parents, especially among the poorest families.

AEASTAT: 2021 Annual Meeting

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Sessions for AEA Committee on Economic Statistics, 2021 ASSA meetings

Front Matter

American Economic Journal: Economic Policy, February 2021

The Sensitivity of Housing Demand to Financing Conditions: Evidence from a Survey

By Andreas Fuster and Basit Zafar

American Economic Journal: Economic Policy, February 2021

Measuring the sensitivity of housing demand to mortgage rates and available leverage is challenging because there is generally no exogenous variation in these variables. This paper circumvents this issue by designing a strategic survey in which respondent...

Rising Intergenerational Income Persistence in China

By Yi Fan, Junjian Yi, and Junsen Zhang

American Economic Journal: Economic Policy, February 2021

This paper documents an increasing intergenerational income persistence in China since economic reforms were introduced in 1979. The intergenerational income elasticity increases from 0.390 for the 1970–1980 birth cohort to 0.442 for the 1981–1988 bir...

Parental Support, Savings, and Student Loan Repayment

By Lance Lochner, Todd Stinebrickner, and Utku Suleymanoglu

American Economic Journal: Economic Policy, February 2021

Using unique survey and administrative data from Canada, we document that parental support and personal savings substantially reduce student loan repayment problems. Developing a model of student borrowing and repayment, we show that nonmonetary costs of ...

The Long-Run Effects of a Public Policy on Alcohol Tastes and Mortality

By Lorenz Kueng and Evgeny Yakovlev

American Economic Journal: Economic Policy, February 2021

We study the long-run effects of Russia's anti-alcohol campaign, which dramatically altered the relative supply of hard and light alcohol in the late 1980s. We find that this policy shifted young men's long-run preferences from hard to light alcohol dec...

Influence and Information in Team Decisions: Evidence from Medical Residency

By David C. Chan

American Economic Journal: Economic Policy, February 2021

I study team decisions among physician trainees. Exploiting a discontinuity in team roles across trainee tenure, I find evidence that teams alter decision-making, concentrating influence in the hands of senior trainees. I also demonstrate little convergen...

Relative Prices and Climate Policy: How the Scarcity of Nonmarket Goods Drives Policy Evaluation

By Moritz A. Drupp and Martin C. Hänsel

American Economic Journal: Economic Policy, February 2021

Climate change not only impacts production and market consumption but also the relative scarcity of nonmarket goods, such as environmental amenities. We study fundamental drivers of the resulting relative price changes, their potential magnitude, and thei...

Who Benefits When Firms Game Corrective Policies?

By Mathias Reynaert and James M. Sallee

American Economic Journal: Economic Policy, February 2021

Firms sometimes comply with externality-correcting policies by gaming the measure that determines policy. This harms buyers by eroding information, but it benefits them when cost savings are passed through into prices. We develop a model that highlights t...

The Impact of Paid Maternity Leave on Maternal Health

By Aline Bütikofer, Julie Riise, and Meghan M. Skira

American Economic Journal: Economic Policy, February 2021

We examine the impact of the introduction of paid maternity leave in Norway in 1977 on maternal health in the medium and long term. Using administrative data combined with survey data on the health of women around age 40, we find the reform improved a ran...

Can Successful Schools Replicate? Scaling Up Boston's Charter School Sector

By Sarah R. Cohodes, Elizabeth M. Setren, and Christopher R. Walters

American Economic Journal: Economic Policy, February 2021

Can schools that boost student outcomes reproduce their success at new campuses? We study a policy reform that allowed effective charter schools in Boston, Massachusetts to replicate their school models at new locations. Estimates based on randomized admi...

Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat

By Fernando M. Aragón, Francisco Oteiza, and Juan Pablo Rud

American Economic Journal: Economic Policy, February 2021

This paper examines how subsistence farmers respond to extreme heat. Using microdata from Peruvian households, we find that high temperatures reduce agricultural productivity, increase area planted, and change crop mix. These findings are consistent with ...