Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms

By Juan Carlos Suárez Serrato and Owen Zidar

American Economic Review, September 2016

This paper estimates the incidence of state corporate taxes on the welfare of workers, landowners, and firm owners using variation in state corporate tax rates and apportionment rules. We develop a spatial equilibrium model with imperfectly mobile firms a...

Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms: Comment

By Clément Malgouyres, Thierry Mayer, and Clément Mazet-Sonilhac

American Economic Review, August 2023

Suarez Serrato and Zidar (2016) identify state corporate tax incidence in a spatial equilibrium model with imperfectly mobile firms. Their identification argument rests on comparative statics omitting a channel implied by their model: the link between com...

Front Matter

American Economic Review: Insights, September 2023

More than a paycheck

[Research Highlight]

August 17, 2018

The AEA interviews Stephan Meier about the nonmonetary rewards of work.

CSMGEP Profile: Gbenga Ajilore

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Government Jobs, in particular the Joint Committee on Taxation (November 2023)

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Watch Rachel Moore

Detecting Mother-Father Differences in Spending on Children: A New Approach Using Willingness-to-Pay Elicitation

By Rebecca Dizon-Ross and Seema Jayachandran

American Economic Review: Insights, December 2023

This paper tests whether mothers and fathers differ in their spending on daughters relative to sons by comparing their willingness to pay (WTP) for specific goods for their children. This method, which we apply in Uganda, offers more precision than the st...

Ghosting the Tax Authority: Fake Firms and Tax Fraud in Ecuador

By Paul Carrillo, Dave Donaldson, Dina Pomeranz, and Monica Singhal

American Economic Review: Insights, December 2023

An important but poorly understood form of firm tax evasion arises from "ghost firms"—fake firms that issue fraudulent receipts so that their clients can claim false deductions. We provide a unique window into this global phenomenon using transaction-le...

The Impact of Host Language Proficiency on Migrants' Employment Outcomes

By Lukas Schmid

American Economic Review: Insights, December 2023

This paper estimates the economic gains from proficiency in the host country's language on migrants' employment outcomes by exploiting the exogenous placement of refugees to Swiss cantons and a sharp language border dividing German- and French-speaking re...

Herd Design

By Itai Arieli, Ronen Gradwohl, and Rann Smorodinsky

American Economic Review: Insights, December 2023

The classic herding model examines the asymptotic behavior of agents who observe their predecessors' actions as well as a private signal from an exogenous information structure. In this paper, we introduce a self-interested sender into the model and study...

Mistakes in Future Consumption, High MPCs Now

By Chen Lian

American Economic Review: Insights, December 2023

In a canonical intertemporal consumption model, future consumption mistakes (in response to saving changes) lead to higher current marginal propensities to consume (MPCs). These mistakes increase the value of changing current consumption relative to chang...

Dishonesty and Public Employment

By Guillermo Cruces, Martín A. Rossi, and Ernesto Schargrodsky

American Economic Review: Insights, December 2023

We exploit a natural experiment to study the causal link between dishonest behavior and public employment. When military conscription was mandatory in Argentina, eligibility was determined by both a lottery and a medical examination. To avoid conscription...

Hiring Frictions and the Promise of Online Job Portals: Evidence from India

By A. Nilesh Fernando, Niharika Singh, and Gabriel Tourek

American Economic Review: Insights, December 2023

Despite the growing prominence of online job portals, firms remain reluctant to hire outside traditional recruitment networks. We find that experimentally providing firms with a combination of advertising and the ability to verify applicant identity incre...

Front Matter

American Economic Review: Insights, December 2023

Global Innovation and Knowledge Diffusion

By Nelson Lind and Natalia Ramondo

American Economic Review: Insights, December 2023

We develop a Ricardian model of trade where countries innovate ideas that diffuse globally. Our key result provides necessary and sufficient conditions for innovation and diffusion to generate max-stable Fréchet productivity, linking generalized extreme ...

Cognitive Behavioral Therapy Reduces Crime and Violence over Ten Years: Experimental Evidence

By Christopher Blattman, Sebastian Chaskel, Julian C. Jamison, and Margaret Sheridan

American Economic Review: Insights, December 2023

Several small, short-term, or nonexperimental studies show that cognitive behavioral–informed interventions reduce antisocial behaviors over one to two years, but persistence research is rare. We followed 999 high-risk men in Liberia ten years after ran...

Sixth World Conference on Remedies to Racial and Social Inequality

[News]

November 30, 2023

The conference will be held on September 3-5, 2024 in Cape Town, South Africa.

CSMGEP: Francisca Antman, ex officio

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CSWEP Board: Francisca Antman

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