Spreading Gangs: Exporting US Criminal Capital to El Salvador

By Maria Micaela Sviatschi

American Economic Review, June 2022

This paper shows how deportation policies can backfire by disseminating not only ideas between countries but also criminal networks, spreading gangs, in this case, across El Salvador, and spurring migration back to the United States. In 1996, the US Illeg...

Efficient Matching in the School Choice Problem

By Philip J. Reny

American Economic Review, June 2022

Stable matchings in school choice needn't be Pareto efficient and can leave thousands of students worse off than necessary. Call a matching μ priority-neutral if no matching can make any student whose priority is violated by μ better off without violati...

Bargaining with Mechanisms

By Marcin Pęski

American Economic Review, June 2022

Two players bargain over a single indivisible good and a transfer, with one-sided incomplete information about preferences. Both players can offer arbitrary mechanisms to determine the allocation. We show that there is a unique perfect Bayesian equilibriu...

Report of Independent Auditor

American Economic Review, June 2022

Anatomy of The Anatomy of Racial Inequality

By Steven Raphael

Journal of Economic Literature, December 2002

In this review, I summarize and offer thoughts about two arguments key to Glenn Loury's analysis of the anatomy of racial inequality. The first concerns the idea that many negative stereotypes held about blacks in the United States are self-fulfilling, de...

Front Matter

American Economic Review: Insights, June 2022

Police Force Size and Civilian Race

By Aaron Chalfin, Benjamin Hansen, Emily K. Weisburst, and Morgan C. Williams Jr.

American Economic Review: Insights, June 2022

We report novel empirical estimates of the race-specific effects of larger police forces in the United States. Each additional police officer abates approximately 0.1 homicides. In per capita terms, effects are twice as large for Black versus White victim...

Unequal Jury Representation and Its Consequences

By Shamena Anwar, Patrick Bayer, and Randi Hjalmarsson

American Economic Review: Insights, June 2022

We analyze the extent and consequences of unequal representation on juries in Harris County, Texas. We first document that residents from predominantly White and high-income neighborhoods are substantially overrepresented on juries. Using quasirandom vari...

The Liquidity Sensitivity of Healthcare Consumption: Evidence from Social Security Payments

By Tal Gross, Timothy J. Layton, and Daniel Prinz

American Economic Review: Insights, June 2022

Insurance is typically viewed as a mechanism for transferring resources from good to bad states. However, insurance may also transfer resources from high-liquidity periods to low-liquidity periods. We test for this type of transfer from health insurance b...

Insurance Design and Pharmaceutical Innovation

By Leila Agha, Soomi Kim, and Danielle Li

American Economic Review: Insights, June 2022

This paper studies how insurance coverage policies impact pharmaceutical innovation. In the United States, most patients obtain prescription drugs through insurance plans administered by Pharmacy Benefit Managers (PBMs). Beginning in 2012, PBMs began refu...

Robust Predictions in Coasian Bargaining

By Heng Liu

American Economic Review: Insights, June 2022

This paper studies robust predictions when players may have additional information in an otherwise standard seller-offer bargaining with private values. Players' extra information gives rise to higher-order uncertainties about the underlying surplus. We s...

Top of the Batch: Interviews and the Match

By Federico Echenique, Ruy González, Alistair J. Wilson, and Leeat Yariv

American Economic Review: Insights, June 2022

Most doctors in the National Resident Matching Program (NRMP) match with one of their most preferred internship programs. However, surveys indicate doctors' preferences are similar, suggesting a puzzle: how can so many doctors match with their top choices...

A Global Version of Samuelson's Dictum

By Yaqing Xiao, Hongjun Yan, and Jinfan Zhang

American Economic Review: Insights, June 2022

Samuelson's Dictum refers to the conjecture that there is more informational inefficiency at the aggregate stock market level than at the individual stock level. Our paper recasts it in a global setup: there should be more informational inefficiency at th...

Review of Shleifer's Inefficient Markets

By Jeffrey Zwiebel

Journal of Economic Literature, December 2002

This excellent book provides the reader with a broad introduction to, and a powerful advocacy of, behavioral finance. In the tradition of the best of the Clarendon Lecture Series, Andrei Shleifer provides a clear context and motivation for a collection of...

The Commitment Benefit of Consols in Government Debt Management

By Davide Debortoli, Ricardo Nunes, and Pierre Yared

American Economic Review: Insights, June 2022

We consider optimal government debt maturity in a deterministic economy in which the government can issue any arbitrary debt maturity structure and in which bond prices are a function of the government's current and future primary surpluses. The governmen...

Front Matter

Journal of Economic Literature, June 2022

Symposium: Race and Economic Literature—Introduction

By Trevon D. Logan and Samuel L. Myers Jr.

Journal of Economic Literature, June 2022

Review of Grossman and Helpman's Special Interest Politics

By David P. Baron

Journal of Economic Literature, December 2002

In Special Interest Politics Gene Grossman and Elhanan Helpman examine how special-interest groups influence political outcomes for the benefit of their members. The authors take interest groups seriously by considering a range of theories and su...

Stratification Economics: Core Constructs and Policy Implications

By Grieve Chelwa, Darrick Hamilton, and James Stewart

Journal of Economic Literature, June 2022

This article introduces the core constructs of stratification economics to provide a coherent explanation for the persistence of intergroup inequalities. Aligned with the critical race theory concept of "the property rights in Whiteness," stratification e...

Position and Possessions: Stratification Economics and Intergroup Inequality

By William A. Darity Jr.

Journal of Economic Literature, June 2022

This article provides an overview of the origins and development of stratification economics as a subfield that centers the importance of identity, social ranking, and relative group position. Stratification economics developed in response to explanations...