America's Continuing Struggle with Mental Illnesses: Economic Considerations

[Symposium: Economics of Mental Health]

By Richard G. Frank and Sherry A. Glied

Journal of Economic Perspectives, Spring 2023

Mental illnesses affect roughly 20 percent of the US population. Like other health conditions, mental illnesses impose costs on individuals; they also generate costs that extend to family members and the larger society. Care for mental illnesses has evo...

Depression and Loneliness among the Elderly in Low- and Middle-Income Countries

[Symposium: Economics of Mental Health]

By Abhijit Banerjee, Esther Duflo, Erin Grela, Madeline McKelway, Frank Schilbach, Garima Sharma, and Girija Vaidyanathan

Journal of Economic Perspectives, Spring 2023

We combine data from longitudinal surveys in seven low- and middle-income countries (plus the United States for comparison) to document that depressive symptoms among those aged 55 and above are prevalent in those countries and, unlike in the United State...

An Introductory Guide to Event Study Models

By Douglas L. Miller

Journal of Economic Perspectives, Spring 2023

The event study model is a powerful econometric tool used for the purpose of estimating dynamic treatment effects. One of its most appealing features is that it provides a built-in graphical summary of results, which can reveal rich patterns of behavior. ...

Retrospectives: Edgar Sydenstricker: Household Equivalence Scales and the Causes of Pellagra

By Philip Clarke and Guido Erreygers

Journal of Economic Perspectives, Spring 2023

In the early part of the 20th century the disease pellagra, now almost unknown, affected and killed thousands of people in the United States. Some claimed it was an infection, while others maintained it was due to a dietary deficiency. The economist Edg...

Recommendations for Further Reading

By Timothy Taylor

Journal of Economic Perspectives, Spring 2023

Interdependent Preferences and Reciprocity

By Joel Sobel

Journal of Economic Literature, June 2005

Experiments, ethnography, and introspection provide evidence economic agents do not act to maximize their narrowly defined self interest. Expanding the domain of preferences to include the utility of others provides a coherent way to extend rational choic...

Complementarities and Games: New Developments

By Xavier Vives

Journal of Economic Literature, June 2005

The theory of monotone comparative statics and supermodular games is presented as the appropriate tool to model complementarities. The approach, which has not yet been fully incorporated into the standard toolbox of researchers, makes the analysis intuiti...

Front Matter

AEA Papers and Proceedings, May 2023

President's Foreword

By Susan C. Athey

AEA Papers and Proceedings, May 2023

Editors' Introduction

By William R. Johnson and Tina Lippert

AEA Papers and Proceedings, May 2023

Distorted Innovation: Does the Market Get the Direction of Technology Right?

By Daron Acemoglu

AEA Papers and Proceedings, May 2023

In the presence of markup differences, externalities, and other social effects, the direction of innovation can be systematically distorted. I build a simple model of endogenous technology to study distortions in the direction of innovation. Empirical fin...

Getting the Properties Right to Secure Property Rights: Dixit's Lawlessness and Economics

By James E. Rauch

Journal of Economic Literature, June 2005

This is a review article of Lawlessness and Economics: Alternative Modes of Governance (Princeton University Press 2004) by Avinash K. Dixit.

The Macroeconomic Consequences of International Financial Sanctions

By Javier Bianchi and Cesar Sosa-Padilla

AEA Papers and Proceedings, May 2023

Financial sanctions have emerged as powerful weapons in the current geopolitical landscape. In this paper, we use a graphical framework to trace their macroeconomic implications, highlighting lessons for the status of the US dollar as a reserve currency, ...

International Sanctions and Limits of Lerner Symmetry

By Oleg Itskhoki and Dmitry Mukhin

AEA Papers and Proceedings, May 2023

After a wave of globalization, trade wars and financial sanctions again become frequent tools of international policymaking, leading to an increased interest in the consequences and effectiveness of international sanctions. Itskhoki and Mukhin (2022b) sho...

How Should Sanctions Account for Bystander Countries?

By John Sturm

AEA Papers and Proceedings, May 2023

Neutral "bystander countries" have profoundly shaped the impact of trade sanctions imposed on Russia following its invasion of Ukraine. How should sanctions account for the presence of such bystanders? I study this question in a simple trade model where a...

Sectoral Shocks and the Role of Market Integration: The Case of Natural Gas

By Silvia Albrizio, John Bluedorn, Christoffer Koch, Andrea Pescatori, and Martin Stuermer

AEA Papers and Proceedings, May 2023

We quantify how market integration affects the economic propagation of sectoral supply shocks at the example of a Russian gas shutoff to the European Union. An open-economy, multisector general equilibrium model suggests that the adverse output impact on ...

Four Mistakes in the Use of Measures of Expected Inflation

By Ricardo Reis

AEA Papers and Proceedings, May 2023

With the profusion of measures of expected inflation (from market prices and from surveys of households, firms, and professionals), it is a mistake to focus on a single one while ignoring the others. This paper discusses four common arguments for a single...

Perceived and Expected Rates of Inflation of US Firms

By Bernardo Candia ⓡ Michael Weber ⓡ Yuriy Gorodnichenko ⓡ Olivier Coibion

AEA Papers and Proceedings, May 2023

The seminal work of Jonung (1981) showed that households' perceptions of inflation are the strongest predictor of households' inflation expectations. This fact has been a key ingredient for testing and developing theoretical models of how economic agents ...

Firm Inflation Uncertainty

By Ivan Yotzov, Lena Anayi, Nicholas Bloom, Philip Bunn, Paul Mizen, Özgen Öztürk, and Gregory Thwaites

AEA Papers and Proceedings, May 2023

We introduce a new measure of own-price inflation uncertainty using firm-level data from a large and representative survey of UK businesses. Inflation uncertainty has increased significantly since the start of 2021, even as a similar measure of sales unce...