Information Choice in Auctions

By Nina Bobkova

American Economic Review, July 2024

The choice of an auction mechanism influences which object characteristics bidders learn about and whether the object is allocated efficiently. Some object characteristics are valued equally by all bidders and thus are inconsequential for the efficient al...

Personalized Pricing and Competition

By Andrew Rhodes and Jidong Zhou

American Economic Review, July 2024

We study personalized pricing in a general oligopoly model. The impact of personalized pricing relative to uniform pricing hinges on the degree of market coverage. If market conditions are such that coverage is high (e.g., the production cost is low or th...

Organized Crime and Economic Growth: Evidence from Municipalities Infiltrated by the Mafia

By Alessandra Fenizia and Raffaele Saggio

American Economic Review, July 2024

This paper studies the long-run economic impact of dismissing city councils infiltrated by organized crime. Applying a matched difference-in-differences design to the universe of Italian social security records, we find that city council dismissals (CCDs)...

The Gift of a Lifetime: The Hospital, Modern Medicine, and Mortality

By Alex Hollingsworth, Krzysztof Karbownik, Melissa A. Thomasson, and Anthony Wray

American Economic Review, July 2024

We explore how access to modern hospitals and medicine affects mortality by leveraging efforts of the Duke Endowment to modernize hospitals in the early twentieth century. The Endowment helped communities build and expand hospitals, obtain state-of-the-ar...

JEP in the Classroom

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JEP in the Classroom

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Front Matter

American Economic Journal: Macroeconomics, July 2024

World Productivity: 1996–2014

By Mehrdad Esfahani, John G. Fernald, and Bart Hobijn

American Economic Journal: Macroeconomics, July 2024

We use a new growth accounting method to quantify the drivers of world total factor productivity (TFP) growth during 1996–2014 and uncover four main results. World productivity growth is volatile from year to year. This mainly reflects reallocation of l...

Measuring Employer-to-Employer Reallocation

By Shigeru Fujita, Giuseppe Moscarini, and Fabien Postel-Vinay

American Economic Journal: Macroeconomics, July 2024

We revisit measurement of employer-to-employer (EE) transitions in the monthly Current Population Survey. The incidence of missing answers to the question on change of employer sharply increases starting with the introduction of a new software instrument ...

Asymmetric Reciprocity and the Cyclical Behavior of Wages, Effort, and Job Creation

By Marco Fongoni

American Economic Journal: Macroeconomics, July 2024

This paper develops a search and matching framework in which workers are characterized by asymmetric reference-dependent reciprocity and firms set wages by considering the effect that these can have on workers' effort and, therefore, on output. The cyclic...

Aggregate and Intergenerational Implications of School Closures: A Quantitative Assessment

By Youngsoo Jang and Minchul Yum

American Economic Journal: Macroeconomics, July 2024

This paper quantitatively investigates the medium- and long-term macroeconomic and distributional consequences of school closures through intergenerational channels. The model economy is a dynastic overlapping-generations general equilibrium model in whic...

Reassessing the Relevance of Financial Shocks in an Estimated Heterogeneous Firm Model

By Xing Guo

American Economic Journal: Macroeconomics, July 2024

I study the transmission of financial shocks using an estimated heterogeneous firm model. Following a contractionary financial shock, financially constrained firms cut investment, but unconstrained firms increase investment due to the lower capital price ...

Macroeconomic Frameworks: Reconciling Evidence and Model Predictions from Demand Shocks

By Alan J. Auerbach, Yuriy Gorodnichenko, and Daniel Murphy

American Economic Journal: Macroeconomics, July 2024

How do demand shocks affect the economy? We exploit detailed data on US defense spending to examine a large set of outcome variables in response to well-identified local demand shocks, jointly examining new outcomes (e.g., firm entry and housing rents) an...

Optimal Foreign Reserves and Central Bank Policy under Financial Stress

By Luis Felipe Céspedes and Roberto Chang

American Economic Journal: Macroeconomics, July 2024

We study foreign reserves accumulation and liquidity policy in an open economy under financial stress. Firms and households finance investment and consumption by borrowing from banks, which borrow from abroad. Binding financial constraints cause the domes...

Delayed Overshooting: The Case for Information Rigidities

By Gernot J. Müller, Martin Wolf, and Thomas Hettig

American Economic Journal: Macroeconomics, July 2024

We provide evidence that the delayed overshooting puzzle reflects a slow adjustment of exchange rate expectations to monetary policy shocks rather than a failure of uncovered interest parity. Consistent with this evidence, we put forward a New Keynesian m...

MPC Heterogeneity and the Dynamic Response of Consumption to Monetary Policy

By Miguel Ampudia, Russell Cooper, Julia Le Blanc, and Guozhong Zhu

American Economic Journal: Macroeconomics, July 2024

This paper studies how household financial choices affect the impact of monetary policy on consumption. Based on micro data from four major euro area countries, we estimate key structural parameters using a simulated method of moments approach to match mo...

Understanding Persistent ZLB: Theory and Assessment

By Pablo Cuba-Borda and Sanjay R. Singh

American Economic Journal: Macroeconomics, July 2024

We develop a theoretical framework that rationalizes two hypotheses of long-lasting low-interest rate episodes: deflationary-expectations-traps and secular stagnation in a unified setting. These hypotheses differ in the sign of the theoretical correlation...

Crossing the Credit Channel: Credit Spreads and Firm Heterogeneity

By Gareth Anderson and Ambrogio Cesa-Bianchi

American Economic Journal: Macroeconomics, July 2024

Firms with high leverage experience a more pronounced increase in credit spreads than firms with low leverage in response to a monetary policy tightening. A large fraction of this increase is due to a component of credit spreads that is in excess of firms...

AEACGR: Resources

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A select listing of resources from the AEA Committee on Government Relations

CSMGEP Profiles: Fernando Lozano

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Fernando Lozano is the Morris B. and Gladys S. Pendleton Professor of economics and chair of the economics department at Pomona College