MPC Heterogeneity and the Dynamic Response of Consumption to Monetary Policy

By Miguel Ampudia, Russell Cooper, Julia Le Blanc, and Guozhong Zhu

American Economic Journal: Macroeconomics, July 2024

This paper studies how household financial choices affect the impact of monetary policy on consumption. Based on micro data from four major euro area countries, we estimate key structural parameters using a simulated method of moments approach to match mo...

Understanding Persistent ZLB: Theory and Assessment

By Pablo Cuba-Borda and Sanjay R. Singh

American Economic Journal: Macroeconomics, July 2024

We develop a theoretical framework that rationalizes two hypotheses of long-lasting low-interest rate episodes: deflationary-expectations-traps and secular stagnation in a unified setting. These hypotheses differ in the sign of the theoretical correlation...

Crossing the Credit Channel: Credit Spreads and Firm Heterogeneity

By Gareth Anderson and Ambrogio Cesa-Bianchi

American Economic Journal: Macroeconomics, July 2024

Firms with high leverage experience a more pronounced increase in credit spreads than firms with low leverage in response to a monetary policy tightening. A large fraction of this increase is due to a component of credit spreads that is in excess of firms...

Pension Reforms and the Opinions of European Citizens

By Tito Boeri, Axel Boersch-Supan, and Guido Tabellini

American Economic Review, May 2002

Asset-Market Effects of the Baby Boom and Social-Security Reform

By Robin Brooks

American Economic Review, May 2002

Intergenerational Risk-Sharing via Social Security when Financial Markets Are Incomplete

By Dirk Krueger and Felix Kubler

American Economic Review, May 2002

Front Matter

American Economic Journal: Microeconomics, August 2024

Correlation Neglect in Student-to-School Matching

By Alex Rees-Jones, Ran Shorrer, and Chloe Tergiman

American Economic Journal: Microeconomics, August 2024

We present results from three experiments containing incentivized school choice scenarios. In these scenarios, we vary whether schools' assessments of students are based on a common priority (inducing correlation in admissions decisions) or are based on i...

Communicating about Confidence: Cheap Talk with an Ambiguity-Averse Receiver

By Philippe Colo

American Economic Journal: Microeconomics, August 2024

An expert, who is only informed of the probability of possible states, communicates with a decision-maker through cheap talk. The decision-maker considers different probability distributions over states as possible and is ambiguity averse. I show that all...

Taxation of Financial Services under a VAT

By Alan J. Auerbach and Roger H. Gordon

American Economic Review, May 2002

The Dynamic Effects of Recycling on Oligopoly Competition: Evidence from the US Paper Industry

By Eddie Watkins

American Economic Journal: Microeconomics, August 2024

Consumer recycling generates new intermediate inputs. If some of the inputs are used to manufacture a substitute for the original product, the primary seller faces an incentive to reduce current output and raise rivals' future costs. I find that firms in ...

Concentration and Geographic Proximity in Antitrust Policy: Evidence from Bank Mergers

By David Benson, Samuel Blattner, Serafin Grundl, You Suk Kim, and Ken Onishi

American Economic Journal: Microeconomics, August 2024

Antitrust often uses the Herfindahl-Hirschman Index (HHI) for merger screening and review. We argue that HHI-based antitrust policy using predefined markets in the banking industry misses anticompetitive effects that are predicted by the proximity of merg...

Monitoring Teams

By Marina Halac, Ilan Kremer, and Eyal Winter

American Economic Journal: Microeconomics, August 2024

A principal incentivizes a group of agents to work by choosing a monitoring structure and a scheme of performance-contingent rewards. The monitoring structure partitions the set of agents into monitoring teams, each delivering a signal of joint performanc...

Everyday Econometricians: Selection Neglect and Overoptimism When Learning from Others

By Kai Barron, Steffen Huck, and Philippe Jehiel

American Economic Journal: Microeconomics, August 2024

This study explores selection neglect in an experimental investment game where individuals can learn from others' outcomes. Experiment 1 examines aggregate-level equilibrium behavior. We find strong evidence of selection neglect and corroborate several co...

Intelligence Disclosure and Cooperation in Repeated Interactions

By Marco Lambrecht, Eugenio Proto, Aldo Rustichini, and Andis Sofianos

American Economic Journal: Microeconomics, August 2024

How does information about players' intelligence affect strategic behavior? Game theory, based on the assumption of common knowledge of rationality, does not provide useful predictions. We experimentally show that, in the Prisoner's Dilemma, disclosure ha...

Negotiating Cooperation under Uncertainty: Communication in Noisy, Indefinitely Repeated Interactions

By Fabian Dvorak and Sebastian Fehrler

American Economic Journal: Microeconomics, August 2024

Case studies of cartels and recent theory suggest that communication is a key factor for cooperation under imperfect monitoring, where actions can only be observed with noise. We conduct a laboratory experiment to study how communication affects cooperati...

Beliefs, Learning, and Personality in the Indefinitely Repeated Prisoner's Dilemma

By David Gill and Yaroslav Rosokha

American Economic Journal: Microeconomics, August 2024

We aim to understand the role and evolution of beliefs in the indefinitely repeated prisoner's dilemma (IRPD). To do so, we elicit beliefs about the supergame strategies chosen by others. We find heterogeneity in beliefs and changes in beliefs with experi...

Monopolization with Must-Haves

By Enrique Ide and Juan-Pablo Montero

American Economic Journal: Microeconomics, August 2024

An increasing number of monopolization cases have been constructed around the notion of "must-have" items: products that distributors must carry to "compete effectively." Motivated by these cases, we consider a multiproduct setting where upstream supplier...

Limited Strategic Thinking and the Cursed Match

By Olivier Bochet and Jacopo Magnani

American Economic Journal: Microeconomics, August 2024

In vertically differentiated matching markets with private information, agents face an acceptance curse: being accepted as a partner conveys bad news. We experimentally investigate whether individuals anticipate the acceptance curse in such an environment...

Dynamic Oligopoly Pricing with Asymmetric Information: Implications for Horizontal Mergers

By Andrew Sweeting, Xuezhen Tao, and Xinlu Yao

American Economic Journal: Microeconomics, August 2024

We model repeated pricing by differentiated product firms when each firm has private information about its serially correlated marginal cost. In a fully separating equilibrium of the dynamic game, signaling incentives can lead equilibrium prices to be sig...