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Sequential Cursed Equilibrium

By Shani Cohen and Shengwu Li

American Economic Review, March 2026

We propose an extensive-form solution concept, with players who neglect information from hypothetical events but make inferences from observed events. Our concept modifies cursed equilibrium (Eyster and Rabin 2005) and allows that players can be cursed ab...

Equal Pay for Similar Work

By Diego Gentile Passaro, Fuhito Kojima, and Bobak Pakzad-Hurson

American Economic Review, March 2026

Equal pay laws increasingly require that workers with different group identities doing "similar" work are paid equal wages within firm. We study such "equal pay for similar work" (EPSW) policies theoretically and test our models' predictions empirically u...

The Price of War

By Jonathan Federle, André Meier, Gernot J. Müller, Willi Mutschler, and Moritz Schularick

American Economic Review, March 2026

We assemble a new dataset spanning 150 years and 60 countries to study the economic toll of war. A war of average intensity is associated with an output drop of close to 10 percent in the war-site economy, while consumer prices rise by approximately 20 pe...

Globalization, Capital Taxation, and Development: Evidence from a Macro-Historical Database

By Pierre Bachas, Matthew Fisher-Post, Anders Jensen, and Gabriel Zucman

American Economic Journal: Applied Economics

This paper builds and analyzes a new global macro-historical database of effective tax rates on capital and labor in 154 countries. We establish a new stylized fact: while effective capital tax rates fell in developed countries between 1965 and 2018, th...