Symposium on the Budget Deficit

[Symposium: Budget Deficit]

By Janet L. Yellen

Journal of Economic Perspectives, Spring 1989

Is the ballooning federal budget deficit a serious economic problem? The papers in this symposium provide four perspectives on this issue. Robert Barro and Robert Eisner disagree sharply with the "majority" opinion concerning deficits. In contrast, Edward...

The Institutions of Monetary Policy

By Mervyn King

American Economic Review, May 2004

Like Father, Like Son: Social Network Externalities and Parent-Child Correlation in Behavior

By Antoni Calvó-Armengol and Matthew O. Jackson

American Economic Journal: Microeconomics, February 2009

We build an overlapping generations model where an individual sees higher returns to adopting a behavior as many neighbors adopt the behavior. We show that overlap in the state of a parent and child's neighborhood can lead to correlation in parent-chil...

Profiting from Regulation: Evidence from the European Carbon Market

By James B. Bushnell, Howard Chong, and Erin T. Mansur

American Economic Journal: Economic Policy, November 2013

We investigate how cap-and-trade regulation affects profits. In late April 2006, the EU CO2 allowance price dropped 50 percent, equating to a €28 billion reduction in the value of aggregate annual allowances. We examine daily returns for 552 stocks f...

Testable Implications of Gross Substitutes in Demand for Two Goods

By Christopher P. Chambers, Federico Echenique, and Eran Shmaya

American Economic Journal: Microeconomics, February 2011

We present a nonparametric "revealed-preference test" for gross substitutes in demand for two goods. (JEL D01, D11)

Does Competition Among Public Schools Benefit Students and Taxpayers? Comment

By Jesse Rothstein

American Economic Review, December 2007

Contracting in Vague Environments

By Marie-Louise Vierø

American Economic Journal: Microeconomics, May 2012

This paper shows that a new trade-off arises in the optimal contract when contracting takes place with vague information (objective ambiguity), reflecting that real-world contracting often takes place under imprecise information. The choice-theoretic fram...

Measuring Self-Control Problems

By John Ameriks, Andrew Caplin, John Leahy, and Tom Tyler

American Economic Review, June 2007

We develop a survey instrument to measure self-control problems in a sample of highly educated adults. This measure relates in the manner that theory predicts to liquid wealth accumulation and personality measures. Yet while self-control problems are typi...

Assessing the Economic Understanding of U.S. High School Students

By William B. Walstad and Ken Rebeck

American Economic Review, May 2001

Bond Risk Premia

By John H. Cochrane and Monika Piazzesi

American Economic Review, March 2005

We study time variation in expected excess bond returns. We run regressions of one-year excess returns on initial forward rates. We find that a single factor, a single tent-shaped linear combination of forward rates, predicts excess returns on one- to fiv...

Do We Have a New E-conomy?

By Martin Neil Baily and Robert Z. Lawrence

American Economic Review, May 2001

International Taxation and Cross-Border Banking

By Harry Huizinga, Johannes Voget, and Wolf Wagner

American Economic Journal: Economic Policy, May 2014

This paper examines empirically how international taxation affects the volume and pricing of cross-border banking activities for a sample of banks in 38 countries over the 1998�2008 period. International double taxation of foreign-source bank inco...

Puzzles: The Other Person's Envelope Is Always Greener

By Barry Nalebuff

Journal of Economic Perspectives, Winter 1989

The Puzzles feature in this issue is devoted to answering a puzzle that appeared in the Spring 1988 issue: "The Other Person's Envelope is Always Greener." The response to this puzzle was overwhelming. Below, I recap the problem and then discuss the myria...

Symposium on Management of Local Commons

[Symposium]

By Pranab Bardhan

Journal of Economic Perspectives, Fall 1993

Report of the Editor: American Economic Review

By Pinelopi Koujianou Goldberg

American Economic Review, May 2013

An A for Effort

By Omari H. Swinton

American Economic Review, May 2015

This paper uses a unique and rich administrative data set to analyze the impact of the introduction of a new grading policy on graduations rates at Benedict College, a Historically Black College in Columbia, South Carolina. According to the new grading po...

Stock Price Booms and Expected Capital Gains

By Klaus Adam, Albert Marcet, and Johannes Beutel

American Economic Review, August 2017

Investors' subjective capital gains expectations are a key element explaining stock price fluctuations. Survey measures of these expectations display excessive optimism (pessimism) at market peaks (troughs). We formally reject the hypothesis that this is ...

Equilibrium Bids in Sponsored Search Auctions: Theory and Evidence

By Tilman Börgers, Ingemar Cox, Martin Pesendorfer, and Vaclav Petricek

American Economic Journal: Microeconomics, November 2013

This paper presents a game theoretic analysis of the generalized second-price auction that the company Overture operated in 2004 to sell sponsored search listings on search engines. We construct a model that embodies few prior assumptions about paramet...

On the Evolution of the Firm Size Distribution: Facts and Theory

By Luís M B Cabral and José Mata

American Economic Review, September 2003

Using a comprehensive data set of Portuguese manufacturing firms, we show that the firm size distribution is significantly right-skewed, evolving over time toward a lognormal distribution. We also show that selection accounts for very little of this evolu...

Aid Effectiveness – Opening the Black Box

By François Bourguignon and Mark Sundberg

American Economic Review, May 2007