Behavioral Economics Comes of Age: A Review Essay on Advances in Behavioral Economics

By Wolfgang Pesendorfer

Journal of Economic Literature, September 2006

Advances in Behavioral Economics contains influential second-generation contributions to behavioral economics. Building on the seminal work by Kahnemann, Strotz, Thaler, Tversky, and others, these contributions have established behavioral economi...

Market Exposure and Endogenous Firm Volatility over the Business Cycle

By Ryan A. Decker, Pablo N. D'Erasmo, and Hernan Moscoso Boedo

American Economic Journal: Macroeconomics, January 2016

We propose a theory of endogenous firm-level risk over the business cycle based on endogenous market exposure. Firms that reach a larger number of markets diversify market-specific demand shocks at a cost. The model is driven only by total factor producti...

Offshoring and Volatility: Evidence from Mexico's Maquiladora Industry

By Paul R. Bergin, Robert C. Feenstra, and Gordon H. Hanson

American Economic Review, September 2009

This paper studies the second-moment properties of offshoring, the arrangement whereby firms carry out particular stages of production abroad. It documents a new empirical regularity: maquiladora industries in Mexico that are associated with US offshoring...

Restructuring Research: Communication Costs and the Democratization of University Innovation

By Ajay Agrawal and Avi Goldfarb

American Economic Review, September 2008

We report evidence that Bitnet adoption facilitated increased research collaboration between US universities. However, not all institutions benefited equally. Using panel data from seven top engineering journals, Bitnet connection records, and institution...

Sraffa, Wittgenstein, and Gramsci

By Amartya Sen

Journal of Economic Literature, December 2003

Two distinct but interrelated issues are investigated here. The first concerns Sraffa's critical role in contemporary philosophy through his pivotal influence on Wittgenstein. The intellectual origins of this profound influence can be traced to the philos...

Guilt in Games

By Pierpaolo Battigalli and Martin Dufwenberg

American Economic Review, May 2007

Deconstructing the Energy-Efficiency Gap: Conceptual Frameworks and Evidence

By Todd Gerarden, Richard G. Newell, and Robert N. Stavins

American Economic Review, May 2015

Energy-efficient technologies offer considerable promise for reducing the financial costs and environmental damages associated with energy use, but these technologies appear not to be adopted to the degree that appears justified, even on a purely private ...

Beaches, Sunshine, and Public Sector Pay: Theory and Evidence on Amenities and Rent Extraction by Government Workers

By Jan K. Brueckner and David Neumark

American Economic Journal: Economic Policy, May 2014

Rent extraction by public sector workers may be limited by the ability of taxpayers to vote with their feet. But rent extraction may be higher in regions where high amenities mute the migration response. This paper develops a theoretical model that pre...

Adverse Selection and Auction Design for Internet Display Advertising

By Nick Arnosti, Marissa Beck, and Paul Milgrom

American Economic Review, October 2016

We model an online display advertising environment in which "performance" advertisers can measure the value of individual impressions, whereas "brand" advertisers cannot. If advertiser values for ad opportunities are positively correlated, second-price au...

The Choice between Market Failures and Corruption

By Daron Acemoglu and Thierry Verdier

American Economic Review, March 2000

Because government intervention transfers resources from one party to another, it creates room for corruption. As corruption often undermines the purpose of the intervention, governments will try to prevent it. They may create rents for bureaucrats, induc...

Bargaining with Arrival of New Traders

By William Fuchs and Andrzej Skrzypacz

American Economic Review, June 2010

We study dynamic bargaining with asymmetric information and arrival of exogenous events, which represent arrival of traders or information. We characterize the unique limit of stationary equilibria with frequent offers. The possibility of arrivals change...

Data Watch: Tort-uring the Data

By Eric Helland, Jonathan Klick, and Alexander Tabarrok

Journal of Economic Perspectives, Spring 2005

This article discusses data available for researchers interested in the U.S. civil justice system and illustrates the uses of the various datasets with some interesting findings. Our focus is on torts, defined as an injury to person or property that is no...

Modeling Bond Yields in Finance and Macroeconomics

By Francis X. Diebold, Monika Piazzesi, and Glenn D. Rudebusch

American Economic Review, May 2005

Organizational Design: Decision Rights and Incentive Contracts

By Susan Athey and John Roberts

American Economic Review, May 2001

GARP for Kids: On the Development of Rational Choice Behavior

By William T. Harbaugh, Kate Krause, and Timothy R. Berry

American Economic Review, December 2001

Tagging and Targeting of Energy Efficiency Subsidies

By Hunt Allcott, Christopher Knittel, and Dmitry Taubinsky

American Economic Review, May 2015

A corrective tax or subsidy is "well-targeted" if it primarily affects choices that are more distorted by market failures. Energy efficiency subsidies are designed to correct multiple distortions: externalities, credit constraints, "landlord-tenant" infor...

Herding and Contrarian Behavior in Financial Markets: An Internet Experiment

By Mathias Drehmann, Jörg Oechssler, and Andreas Roider

American Economic Review, December 2005

We report results of an Internet experiment designed to test the theory of informational cascades in financial markets (Christopher Avery and Peter Zemsky, 1998). More than 6,400 subjects, including a subsample of 267 consultants from an international con...

Willingness To Pay and Willingness To Accept: How Much Can They Differ? Reply

By W. Michael Hanemann

American Economic Review, March 2003

Does the Current Account Still Matter?

By Maurice Obstfeld

American Economic Review, May 2012

Unique Equilibrium in a Model of Self-Fulfilling Currency Attacks: Comment

By Frank Heinemann

American Economic Review, March 2000