The Monetary Transmission Mechanism: An Empirical Framework

[Symposium: The Monetary Transmission Mechanism]

By John B. Taylor

Journal of Economic Perspectives, Fall 1995

This paper provides an overview of the monetary transmission mechanism describing the impact of changes in monetary policy on real GDP. Changes in financial market prices--including long-term interest rates and exchange rates--are the main vehicle for the...

Beyond Signaling and Human Capital: Education and the Revelation of Ability

By Peter Arcidiacono, Patrick Bayer, and Aurel Hizmo

American Economic Journal: Applied Economics, October 2010

We provide evidence that college graduation plays a direct role in revealing ability to the labor market. Using the NLSY79, our results suggest that ability is observed nearly perfectly for college graduates, but is revealed to the labor market more gradu...

The Importance of School Systems: Evidence from International Differences in Student Achievement

[Symposium: Schools and Accountability]

By Ludger Woessmann

Journal of Economic Perspectives, Summer 2016

Students in some countries do far better on international achievement tests than students in other countries. Is this all due to differences in what students bring with them to school--socioeconomic background, cultural factors, and the like? Or do school...

Calorie Posting in Chain Restaurants

By Bryan Bollinger, Phillip Leslie, and Alan Sorensen

American Economic Journal: Economic Policy, February 2011

We study the impact of mandatory calorie posting on consumers' purchase decisions using detailed data from Starbucks. We find that average calories per transaction fall by 6 percent. The effect is almost entirely related to changes in consumers' food choi...

Social Limits to Redistribution

By Giacomo Corneo and Hans Peter Gruner

American Economic Review, December 2000

The Effect of Shift Structure on Performance

By Tanguy Brachet, Guy David, and Andrea M. Drechsler

American Economic Journal: Applied Economics, April 2012

The effect of shift structure on worker performance and productivity is of increasing interest to firms and regulatory bodies. Using approximately 743,000 emergency medical incidents attended by 2,381 paramedics in Mississippi, we evaluate the extent that...

Simple Analytics of the Government Expenditure Multiplier

By Michael Woodford

American Economic Journal: Macroeconomics, January 2011

This paper explains the key factors that determine the output multiplier of government purchases in New Keynesian models, through a series of simple examples that can be solved analytically. Sticky prices or wages allow for larger multipliers than in a ne...

Do Juntas Lead to Personal Rule?

By Daron Acemoglu, Georgy Egorov, and Konstantin Sonin

American Economic Review, May 2009

A Potential Disintegration of the West Antarctic Ice Sheet: Implications for Economic Analyses of Climate Policy

By Delavane Diaz and Klaus Keller

American Economic Review, May 2016

The Earth system may react in a nonlinear threshold response to climate forcings. Incorporating threshold responses into integrated assessment models (IAMs) used for climate policy analysis poses nontrivial challenges, for example due to methodological li...

Skill Dispersion and Trade Flows

By Matilde Bombardini, Giovanni Gallipoli, and Germán Pupato

American Economic Review, August 2012

Is skill dispersion a source of comparative advantage? In this paper we use microdata from the International Adult Literacy Survey to show that the effect of skill dispersion on trade flows is quantitatively similar to that of the aggregate endowment of h...

How Does the Market Use Citation Data? The Hirsch Index in Economics

By Glenn Ellison

American Economic Journal: Applied Economics, July 2013

A large literature following Hirsch (2005) has proposed citation- based indexes of individuals' research output. This paper views Hirsch's index as one member of a larger class and examines how well different indexes align with labor market outcomes f...

Retrospectives: Lionel W. McKenzie and the Proof of the Existence of a Competitive Equilibrium

By E. Roy Weintraub

Journal of Economic Perspectives, Spring 2011

The theorem proving the existence of general equilibrium in a competitive economy, which necessarily involved specifying the conditions under which such an equilibrium would exist, is an extraordinary achievement of twentieth-century economics. The discov...

Restricting the Trash Trade

By Eduardo Ley, Molly Macauley, and Stephen W. Salant

American Economic Review, May 2000

Indirect Effects of a Policy Altering Criminal Behavior: Evidence from the Italian Prison Experiment

By Francesco Drago and Roberto Galbiati

American Economic Journal: Applied Economics, April 2012

We exploit the 2006 Italian prison pardon to evaluate peer effects in criminal behavior. The pardon randomly commutes actual sentences to expected sentences for 40 percent of the Italian prison population. Using prison and geographical origin to construct...

Learning Outcomes for Economists

By Sam Allgood and Amanda Bayer

American Economic Review, May 2017

Articulating thoughtful learning outcome statements for courses and majors improves teaching and learning and satisfies accreditation requirements. After reading this paper, economists will be able to construct learning outcome statements that guide and e...

The Utilitarian Relevance of the Aggregation Theorem

By Marc Fleurbaey and Philippe Mongin

American Economic Journal: Microeconomics, August 2016

Harsanyi (1955) invested his Aggregation Theorem and Impartial Observer Theorem with utilitarian sense, but Sen (1986) described them as "representation theorems" with little ethical import. This critical view has never been subjected to full analytical s...

Mobile Phones and Economic Development in Africa

By Jenny C. Aker and Isaac M. Mbiti

Journal of Economic Perspectives, Summer 2010

Access to and use of mobile telephony in sub-Saharan Africa has increased dramatically over the past decade. Mobile telephony has brought new possibilities to the continent. Across urban-rural and rich-poor divides, mobile phones connect individuals to in...

Optimal Tax Design and Enforcement with an Informal Sector

By Robin Boadway and Motohiro Sato

American Economic Journal: Economic Policy, February 2009

An optimal commodity tax approach is taken to compare trade taxes and VATs when some commodities are produced informally. Trade taxes apply to all imports and exports, including intermediate goods, while the VAT applies only to sales by the formal sect...

Creating Modern Art: The Changing Careers of Painters in France from Impressionism to Cubism

By David W. Galenson and Bruce A. Weinberg

American Economic Review, September 2001

The Effect of a Universal Child Benefit on Conceptions, Abortions, and Early Maternal Labor Supply

By Libertad González

American Economic Journal: Economic Policy, August 2013

I study the impact of a universal child benefit on fertility and maternal labor supply. I exploit the unanticipated introduction of a sizable child benefit in Spain in 2007. Following a regression discontinuity-type design, I find that the benefit signifi...