Measuring the Benefits of Greater Spatial Granularity in Short-Term Pricing in Wholesale Electricity Markets

By Frank A. Wolak

American Economic Review, May 2011

Hourly generation unit-level output levels, detailed information on the technological characteristics of generation units, and daily delivered natural gas prices to all generation units for the California wholesale electricity market before and after the ...

The Use of Performance Measures in Incentive Contracting

By George Baker

American Economic Review, May 2000

The Role of Cognitive Skills in Economic Development

By Eric A. Hanushek and Ludger Woessmann

Journal of Economic Literature, September 2008

The role of improved schooling, a central part of most development strategies, has become controversial because expansion of school attainment has not guaranteed improved economic conditions. This paper reviews the role of cognitive skills in promoting ...

Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left

[Symposium: Econometric Tools]

By Jerry Hausman

Journal of Economic Perspectives, Fall 2001

The effect of mismeasured variables in the most straightforward regression analysis with a single regressor variable leads to a least squares estimate that is downward biased in magnitude toward zero. I begin by reviewing classical issues involving mismea...

Efficient Bailouts?

By Javier Bianchi

American Economic Review, December 2016

We develop a quantitative equilibrium model of financial crises to assess the interaction between ex post interventions in credit markets and the buildup of risk ex ante. During a systemic crisis, bailouts relax balance sheet constraints and mitigate the ...

Experimentation, Patents, and Innovation

By Daron Acemoglu, Kostas Bimpikis, and Asuman Ozdaglar

American Economic Journal: Microeconomics, February 2011

This paper studies a simple model of experimentation and innovation. Our analysis suggests that patents improve the allocation of resources by encouraging rapid experimentation and efficient ex post transfer of knowledge. Each firm receives a signal on th...

Belief Elicitation with a Synchronized Lottery Choice Menu That Is Invariant to Risk Attitudes

By Charles A. Holt and Angela M. Smith

American Economic Journal: Microeconomics, February 2016

This paper uses a Bayesian information processing task to compare belief elicitation mechanisms including a quadratic scoring rule, a Becker-DeGroot-Marschak pricing procedure, and a two-stage menu of lottery choices that is structured to identify a preci...

The Impact of Regulations on the Supply and Quality of Care in Child Care Markets

By V. Joseph Hotz and Mo Xiao

American Economic Review, August 2011

We examine the impact of state child care regulations on the supply and quality of care in child care markets. We exploit panel data on both individual establishments and local markets to control for state, time, and, where possible, establishment-specifi...

The Polish Zloty, 1990-1999: Success and Underperformance

By Domenico Mario Nuti

American Economic Review, May 2000

Moral Hazard and Customer Loyalty Programs

By Leonardo J. Basso, Matthew T. Clements, and Thomas W. Ross

American Economic Journal: Microeconomics, February 2009

Frequent-flier plans (FFPs) may be the most famous of customer loyalty programs, and there are similar schemes in other industries. We present a theory that models FFPs as efforts to exploit the agency relationship between employers (who pay for ticket...

Corrigendum: The Price Effects of a Large Merger of Manufacturers: A Case Study of Maytag Whirlpool

By Orley C. Ashenfelter, Daniel S. Hosken, and Matthew C. Weinberg

American Economic Journal: Economic Policy, February 2014

Money, Liquidity, and Monetary Policy

By Tobias Adrian and Hyun Song Shin

American Economic Review, May 2009

Front Matter

American Economic Journal: Applied Economics, July 2017

Real and Money Wage Rates

By John T. Dunlop

Journal of Economic Perspectives, Spring 1998

In the General Theory, John Maynard Keynes held money and real wage rates move in opposite directions. In expansion, prices increase faster because of increasing costs and a rise in the proportion of product going to profits. Neoclassical economists held ...

Evolution of Time Preference by Natural Selection: Comment

By Arthur J. Robson and Balazs Szentes

American Economic Review, June 2008

We reexamine Alan R. Rogers' (1994) analysis of the biological basis of the rate of time preference. Although his basic insight concerning the derivation of the utility function holds up, the functional form he uses does not generate equilibrium evolution...

Salience in Experimental Tests of the Endowment Effect

By Pedro Bordalo, Nicola Gennaioli, and Andrei Shleifer

American Economic Review, May 2012

We provide a novel account of experimental evidence for the endowment effect using the salience mechanism (Bordalo, Gennaioli, and Shleifer, 2011). The two-stage procedure implemented in experiments implies that the endowed good and other goods are evalua...

Credit Default Swaps and the Credit Crisis

[Symposium: Financial Plumbing]

By Rene M. Stulz

Journal of Economic Perspectives, Winter 2010

Many observers have argued that credit default swaps contributed significantly to the credit crisis. Of particular concern to these observers are that credit default swaps trade in the largely unregulated over-the-counter market as bilateral contracts inv...

Job Displacement Risk and the Cost of Business Cycles

By Tom Krebs

American Economic Review, June 2007

This paper analyzes the welfare costs of business cycles when workers face uninsurable job displacement risk. The paper uses a simple macroeconomic model with incomplete markets to show that cyclical variations in the long-term earnings losses of displ...

The Superiority of Economists

By Marion Fourcade, Etienne Ollion, and Yann Algan

Journal of Economic Perspectives, Winter 2015

In this essay, we analyze the dominant position of economics within the network of the social sciences in the United States. We begin by documenting the relative insularity of economics, using bibliometric data. Next we analyze the tight management of t...

The Impact of Year-Round Schooling on Academic Achievement: Evidence from Mandatory School Calendar Conversions

By Steven C. McMullen and Kathryn E. Rouse

American Economic Journal: Economic Policy, November 2012

In 2007, 22 Wake County, North Carolina traditional calendar schools were switched to year-round calendars, spreading the 180 instructional days evenly across the year. This paper presents a human capital model to illustrate the conditions under which the...