Symposium on Management of Local Commons

[Symposium: Management of Local Commons]

By Pranab Bardhan

Journal of Economic Perspectives, Fall 1993

Coping with Asymmetries in the Commons: Self-Governing Irrigation Systems Can Work

[Symposium: Management of Local Commons]

By Elinor Ostrom and Roy Gardner

Journal of Economic Perspectives, Fall 1993

Many analysts presume that the appropriators of a common-pool resource are trapped in a Hobbesian state of nature and cannot themselves create rules to counteract the perverse incentives they face in managing the resource. The logical consequence of this ...

Managing Local Commons: Theoretical Issues in Incentive Design

[Symposium: Management of Local Commons]

By Paul Seabright

Journal of Economic Perspectives, Fall 1993

Local commons encompass a wide range of resources whose shared feature is the need for some form of collective management. In what follows, we shall be concerned mainly with the problems of implementing a collective management plan. Whatever the mechanism...

Sophisticated Consumers with Inertia: Long-Term Implications from a Large-Scale Field Experiment

By Klaus M. Miller, Navdeep S. Sahni, and Avner Strulov-Shlain

American Economic Review

Are consumers aware of their future inertia? We run a field experiment that offers over a million readers of a European newspaper auto-renewing or auto-canceling contracts. Many consumers are inert yet most anticipate and account for their inertia: thou...

Monetary Policy, Segmentation, and the Term Structure

By Rohan Kekre, Moritz Lenel, and Federico Mainardi

American Economic Review

We develop a segmented markets model which rationalizes the effects of monetary policy on the term structure of interest rates. When arbitrageurs’ portfolio features positive duration, an unexpected rise in the short rate lowers their wealth and rais...

Polluted IPOs

By Meng Miao, Wei Wang, and Zhengyu Zuo

American Economic Journal: Economic Policy

Chinese companies must undergo a review by a regulator-appointed committee before proceeding with initial public offerings (IPOs). We find that firms, particularly politically unconnected ones, are more likely to pass this review on polluted days (i.e.,...

China’s Nationwide CO2 Emissions Trading System: A General Equilibrium Assessment

By Lawrence H. Goulder, Xianling Long, Chenfei Qu, and Da Zhang

American Economic Journal: Economic Policy

China’s CO2 emissions trading system, the world’s largest, aims to significantly reduce CO2 emissions. The system is a tradable performance standard (TPS), differing from cap and trade (C&T). We provide a dynamic general equilibrium assessment that un...

Front Matter

American Economic Journal: Macroeconomics, October 2026

Price Setting and Volatility: Evidence from Oil Price Volatility Shocks

By Matthew Klepacz

American Economic Journal: Macroeconomics, October 2026

Do changes in aggregate volatility alter the impulse response of output to monetary policy? I use plausibly exogenous oil price volatility shocks and exploit heterogeneity in oil usage across industries to show that PPI item-level price changes become les...

Procyclical Fiscal Policy and Asset Market Incompleteness

By Andrés Fernández, Daniel Guzmán-Girón, Ruy Lama, and Carlos Vegh

American Economic Journal: Macroeconomics, October 2026

We develop a model of the joint behavior of optimal tax rates and government spending over the business cycle to explain procyclical fiscal policy in emerging markets. Our setup relies on financial frictions, which have been shown to be critical features ...

Leaning against the Global Financial Cycle

By Andrea Ferrero, Maurizio Michael Habib, Livio Stracca, and Fabrizio Venditti

American Economic Journal: Macroeconomics, October 2026

We investigate the impact of institutional quality on shielding emerging economies from the global financial cycle. Our findings indicate that countries with a higher rule of law, characterized by superior contract enforcement and more robust protection o...

Long-Distance Trade and Long-Term Persistence

By Sebastian Ellingsen

American Economic Journal: Macroeconomics, October 2026

Do changes in the location of trading opportunities cause changes in the location of economic activity? I explore this question using a lifting of restrictions on trade across the Spanish Empire in the eighteenth century. I combine a difference-in-differe...

Firm Heterogeneity, Market Power, and Macroeconomic Fragility

By Alessandro Ferrari and Francisco Queirós

American Economic Journal: Macroeconomics, October 2026

We study how firm heterogeneity and market power affect macroeconomic fragility, defined as the probability of long slumps. We propose a theory in which the positive interaction between firm entry, competition and factor supply can give rise to multiple s...

Wage Adjustment in Efficient Long-Term Employment Relationships

By Michael W. L. Elsby, Axel Gottfries, Pawel Krolikowski, and Gary Solon

American Economic Journal: Macroeconomics, October 2026

We present a model in which efficient long-term employment relationships are sustained by wage adjustments prompted by productivity shocks and outside job offers. These wage adjustments occur only sporadically, due to the presence of renegotiation costs. ...

Information and the Formation of Inflation Expectations by Firms: Evidence from a Survey of Israeli Firms

By Yuriy Gorodnichenko, Ari Kutai, and Rafi Melnick

American Economic Journal: Macroeconomics, October 2026

This study analyzes how firms form their inflation expectations after a regime change in monetary policy and a transition to a low-inflation environment. Using the Bank of Israel survey of firms, we document the basic properties of firms' inflation expect...

Health Sector Structural Change

By Nick Pretnar and Maria Feldman

American Economic Journal: Macroeconomics, October 2026

The US health-services sector has grown in terms of its expenditure share and relative price. Using a two-sector general equilibrium model with monopolistic competition and endogenous population, we find that relative price growth is almost entirely attri...

Labor Market Discrimination and the Racial Unemployment Gap: Can Monetary Policy Make a Difference?

By Isabel Cairó and Avi Lipton

American Economic Journal: Macroeconomics, October 2026

Black workers experience higher, more volatile unemployment than White workers, a racial disparity unexplained by observables. A New Keynesian model with a frictional labor market, endogenous separations, and employer discrimination explains these outcome...

What Drives the Recent Surge in Inflation? The Historical Decomposition Roller Coaster

By Drago Bergholt, Fabio Canova, Francesco Furlanetto, Nicolò Maffei-Faccioli, and Pål Ulvedal

American Economic Journal: Macroeconomics, October 2026

What drives the recent inflation surge? To answer, one must decompose inflation fluctuations into the contribution of structural shocks. We document how whimsical such a shock decomposition can be in standard vector autoregression (VAR) models. We show th...

Optimal Taxation of Inflation

By Damien Capelle and Yang Liu

American Economic Journal: Macroeconomics, October 2026

This paper analyzes the effectiveness of a tax on inflation policy (TIP), which would require firms to pay a tax proportional to the increase in their prices or wages, in stabilizing inflation. We show that TIP would effectively correct externalities in f...

Oil Prices, Monetary Policy, and Inflation Surges

By Luca Gagliardone and Mark Gertler

American Economic Journal: Macroeconomics, October 2026

We develop a simple quantitative New Keynesian model aimed at analyzing how the reaction of monetary policy contributed to the recent rise and fall in inflation. The model includes several shocks but features oil price shocks for two reasons: (i) energy p...