Long-Term Contracting with Markovian Consumers

By Marco Battaglini

American Economic Review, June 2005

To study how a firm can capitalize on a long-term customer relationship, we characterize the optimal contract between a monopolist and a consumer whose preferences follow a Markov process. The optimal contract is nonstationary and has infinite memory, but...

Art and Money

By William N. Goetzmann, Luc Renneboog, and Christophe Spaenjers

American Economic Review, May 2011

This paper investigates the impact of equity markets and top incomes on art prices. Using a newly constructed art market index, we demonstrate that equity market returns have had a significant impact on the price level in the art market over the last two ...

Dynamics and Stability of Constitutions, Coalitions, and Clubs

By Daron Acemoglu, Georgy Egorov, and Konstantin Sonin

American Economic Review, June 2012

In dynamic collective decision making, current decisions determine the future distribution of political power and influence future decisions. We develop a general framework to study this class of problems. Under acyclicity, we characterize dynamically sta...

U.S. Industry Adjustment to Economic Deregulation

[Symposium: Legacy of Deregulation]

By Clifford Winston

Journal of Economic Perspectives, Summer 1998

This paper develops a framework to analyze the long-run adjustment of U.S. industries to economic deregulation, highlighting the role of intensified competition, innovations in operations, marketing, and technology, and adjustments to external shocks. The...

The Effect of Product Demand on Inequality: Evidence from the United States and the United Kingdom

By Marco Leonardi

American Economic Journal: Applied Economics, July 2015

Using Consumer Expenditure Survey data this paper shows that more educated workers demand more high-skill-intensive services and, to a lesser extent, more very low-skill-intensive services (such as personal services). Additional evidence at the Metropolit...

Recommendations for Further Reading

By Bernard Saffran

Journal of Economic Perspectives, Summer 1987

Costly Information Acquisition: Experimental Analysis of a Boundedly Rational Model

By Xavier Gabaix, David Laibson, Guillermo Moloche, and Stephen Weinberg

American Economic Review, September 2006

The directed cognition model assumes that agents use partially myopic option-value calculations to select their next cognitive operation. The current paper tests this model by studying information acquisition in two experiments. In the first experiment,...

The Real Effects of European Monetary Union

[Symposium: The Euro]

By Philip R. Lane

Journal of Economic Perspectives, Fall 2006

We explore the impact of European monetary union on the economies of the member countries. Inflation differentials across the euro area have been persistent, such that cumulative real exchange rate movements across the euro area have been quite substantia...

Choice Inconsistencies among the Elderly: Evidence from Plan Choice in the Medicare Part D Program: Comment

By Jonathan D. Ketcham, Nicolai V. Kuminoff, and Christopher A. Powers

American Economic Review, December 2016

Consumers' enrollment decisions in Medicare Part D can be explained by Abaluck and Gruber's (2011) model of utility maximization with psychological biases or by a neoclassical version of their model that precludes such biases. We evaluate these competing ...

High Discounts and High Unemployment

By Robert E. Hall

American Economic Review, February 2017

Unemployment is high when financial discounts are high. In recessions, the stock market falls and all types of investment fall, including employers' investment in job creation. The discount rate implicit in the stock market rises, and discounts for other ...

Is Free Trade Good for the Environment?

By Werner Antweiler, Brian R. Copeland, and M. Scott Taylor

American Economic Review, September 2001

This paper investigates how openness to international goods markets affects pollution concentrations. We develop a theoretical model to divide trade's impact on pollution into scale, technique, and composition effects and then examine this theory using da...

The Economic Future of Europe

[Symposium: The Transformation of Europe]

By Olivier Blanchard

Journal of Economic Perspectives, Fall 2004

After three years of near stagnation, the mood in Europe is definitely gloomy. Many doubt that the European model has a future. In this paper, I argue that things are not so bad, and there is room for optimism. Over the last thirty years, productivity gro...

Effects of Federal Policy to Insure Young Adults: Evidence from the 2010 Affordable Care Act's Dependent-Coverage Mandate

By Yaa Akosa Antwi, Asako S. Moriya, and Kosali Simon

American Economic Journal: Economic Policy, November 2013

Using data from the Survey of Income and Program Participation (SIPP), we study the health insurance and labor market implications of the recent Affordable Care Act (ACA) provision that allows dependents to remain on parental policies until age 26. Our...

The Other Transformation in Econometric Practice: Robust Tools for Inference

[Symposium: Con out of Economics]

By James H. Stock

Journal of Economic Perspectives, Spring 2010

Angrist and Pischke highlight one aspect of the research that has positively transformed econometric practice and teaching. They emphasize the rise of experiments and quasi-experiments as credible sources of identification in microeconometric studies, whi...

Cash for Coolers: Evaluating a Large-Scale Appliance Replacement Program in Mexico

By Lucas W. Davis, Alan Fuchs, and Paul Gertler

American Economic Journal: Economic Policy, November 2014

This paper evaluates a large-scale appliance replacement program in Mexico that from 2009 to 2012 helped 1.9 million households replace their old refrigerators and air conditioners with energyefficient models. Using household-level billing records from...

IQ and Income Inequality in a Sample of Sibling Pairs from Advantaged Family Backgrounds

By Charles Murray

American Economic Review, May 2002

Quasi-Experimental Evidence on the Connection between Property Taxes and Residential Capital Investment

By Byron Lutz

American Economic Journal: Economic Policy, February 2015

Do low property taxes attract new home construction? This question is answered using a large shock to property tax burdens caused by an unusual school finance reform in the state of New Hampshire. The estimates suggest that, in most of the state, communit...

Patient Cost-Sharing and Hospitalization Offsets in the Elderly

By Amitabh Chandra, Jonathan Gruber, and Robin McKnight

American Economic Review, March 2010

In the Medicare program, increases in cost sharing by a supplemental insurer can exert financial externalities. We study a policy change that raised patient cost sharing for the supplemental insurer for retired public employees in California. We find t...

Implicit Discrimination

By Marianne Bertrand, Dolly Chugh, and Sendhil Mullainathan

American Economic Review, May 2005

Aid, Policies, and Growth: Reply

By Craig Burnside and David Dollar

American Economic Review, June 2004