Do People Vote with Their Feet? An Empirical Test of Tiebout

By H. Spencer Banzhaf and Randall P. Walsh

American Economic Review, June 2008

Charles Tiebout's suggestion that people "vote with their feet" for communities with optimal bundles of taxes and public goods has played a central role in local public finance for over 50 years. Using a locational equilibrium model, we derive formal t...

Output Spillovers from Fiscal Policy

By Alan J. Auerbach and Yuriy Gorodnichenko

American Economic Review, May 2013

For a large number of OECD countries we estimate the cross-country spillover effects of government purchases on output. Following the methodology in Auerbach and Gorodnichenko (2012a, b), we allow these multipliers to vary smoothly according to the state ...

Adaptation and Vertical Integration in the Airline Industry

By Silke Januszewski Forbes and Mara Lederman

American Economic Review, December 2009

We explore patterns of vertical integration in the US airline industry. Major airlines subcontract portions of their network to regional partners, which may or may not be owned. We investigate if ownership economizes on ex post renegotiation costs. We ...

School Desegregation, School Choice, and Changes in Residential Location Patterns by Race

By Nathaniel Baum-Snow and Byron F. Lutz

American Economic Review, December 2011

This paper examines the residential location and school choice responses to the desegregation of large urban public school districts. We decompose the well documented decline in white public enrollment following desegregation into migration to suburban di...

What Has Mattered to Economics Since 1970

By E. Han Kim, Adair Morse, and Luigi Zingales

Journal of Economic Perspectives, Fall 2006

Citations are one way that past research echoes through time. In this paper, we compile a list of articles published in major refereed economics journals in the last 35 years that have received more than 500 citations as of June 2006. We then use this lis...

Household Consumption When the Marriage Is Stable

By Laurens Cherchye, Thomas Demuynck, Bram De Rock, and Frederic Vermeulen

American Economic Review, June 2017

We develop a novel framework to analyze the structural implications of the marriage market for household consumption. We define a revealed preference characterization of efficient household consumption when the marriage is stable. We characterize stable m...

Editorial Note: Correction to Richard S. Tol's "The Economic Effects of Climate Change"

Journal of Economic Perspectives, Winter 2015

The European Central Bank, the Euro, and Global Financial Markets

[Symposium: The Euro]

By Kathryn M. E. Dominguez

Journal of Economic Perspectives, Fall 2006

The economic case for European monetary union was shaky at best when it was first discussed 35 years ago. Europe's leaders felt that monetary union was the capstone to their efforts to create an integrated Europe, and much to the rest of the world's surpr...

The Economics and Law of Sovereign Debt and Default

By Ugo Panizza, Federico Sturzenegger, and Jeromin Zettelmeyer

Journal of Economic Literature, September 2009

This paper surveys the recent literature on sovereign debt and relates it to the evolution of the legal principles underlying the sovereign debt market and the experience of the most recent debt crises and defaults. It finds limited support for theories...

Completion Rates and Time-to-Degree in Economics PhD Programs (with comments by David Colander, N. Gregory Mankiw, Melissa P. McInerney, James M. Poterba)

By Wendy A. Stock, John J. Siegfried, and T. Aldrich Finegan

American Economic Review, May 2011

This paper describes the progress, eight years after matriculating, of 586 individuals who entered one of 27 economics Ph.D. programs in fall 2002. By October 2010, 59 percent of the fall 2002 entering cohort had earned a Ph.D. in economics at the univers...

Market Microstructure and Intermediation

By Daniel F. Spulber

Journal of Economic Perspectives, Summer 1996

This paper emphasizes the important role played by intermediaries in the economy, including wholesalers, retailers, and financial firms. The paper defines an intermediary as an economic agent that purchases from suppliers for resale to buyers or that help...

Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results

By Justin Wolfers

American Economic Review, December 2006

Applying the Coase Theorem to marital bargaining suggests that shifting from consent to unilateral divorce laws will not affect divorce rates. I show that existing evidence suggesting large effects of divorce laws on divorce rates reflect a failure to exp...

Markets: Continuity and Change in the International Diamond Market

By Debora L. Spar

Journal of Economic Perspectives, Summer 2006

The international diamond cartel, which presides over the production side of the industry, may be the most successful and longest-lasting cartel in the world. The dominant company in the industry, DeBeers, has been around since 1880 and has been controlle...

Access, Sorting, and Achievement: The Short-Run Effects of Free Primary Education in Kenya

By Adrienne M. Lucas and Isaac M. Mbiti

American Economic Journal: Applied Economics, October 2012

We examine the impact of the Kenyan Free Primary Education program on student participation, sorting, and achievement on the primary school exit examination. Exploiting variation in pre-program dropout rates between districts, we find that the program inc...

Optimal Monetary Policy in Open versus Closed Economies: An Integrated Approach

By Richard Clarida, Jordi Gali, and Mark Gertler

American Economic Review, May 2001

The Persistent Effect of Temporary Affirmative Action

By Conrad Miller

American Economic Journal: Applied Economics, July 2017

I estimate the dynamic effects of federal affirmative action regulation, exploiting variation in the timing of regulation and deregulation across work establishments. Affirmative action increases the black share of employees over time: in 5 years after an...

The Effects of Social Networks on Employment and Inequality

By Antoni Calvó-Armengol and Matthew O. Jackson

American Economic Review, June 2004

We develop a model where agents obtain information about job opportunities through an explicitly modeled network of social contacts. We show that employment is positively correlated across time and agents. Moreover, unemployment exhibits duration dependen...

Clubs with Entrapment

By Avinash Dixit

American Economic Review, December 2003

The Macroeconomics of Trend Inflation

By Guido Ascari and Argia M. Sbordone

Journal of Economic Literature, September 2014

Most macroeconomic models for monetary policy analysis are approximated around a zero inflation steady state, but most central banks target an inflation rate of about 2 percent. Many economists have recently proposed even higher inflation targets to reduc...

The Effects of Lottery Prizes on Winners and Their Neighbors: Evidence from the Dutch Postcode Lottery

By Peter Kuhn, Peter Kooreman, Adriaan Soetevent, and Arie Kapteyn

American Economic Review, August 2011

Each week, the Dutch Postcode Lottery (PCL) randomly selects a postal code, and distributes cash and a new BMW to lottery participants in that code. We study the effects of these shocks on lottery winners and their neighbors. Consistent with the life-cycl...