Entrepôt: Hubs, Scale, and Trade Costs

By Sharat Ganapati, Woan Foong Wong, and Oren Ziv

American Economic Journal: Macroeconomics, October 2024

We study the global trade network and quantify its trade and welfare impact. We document that the trade network is a hub-and-spoke system where 80 percent of trade is shipped indirectly and largely via entrepôts—major hubs that facilitate trade between...

Report of the Committee on Economic Education

American Economic Review, May 2002

Idiosyncratic Income Risk and Aggregate Fluctuations

By Davide Debortoli and Jordi Galí

American Economic Journal: Macroeconomics, October 2024

We study how the presence of idiosyncratic income risk affects aggregate fluctuations in the absence of binding borrowing constraints and/or cyclical income risk. Its impact is shown to be captured by the response of a consumption-weighted average of indi...

Automation, Bargaining Power, and Labor Market Fluctuations

By Sylvain Leduc and Zheng Liu

American Economic Journal: Macroeconomics, October 2024

We argue that the threat of automation weakens workers' bargaining power in wage negotiations, dampening wage adjustments and amplifying unemployment fluctuations. We make this argument based on a business cycle model with labor market search frictions, g...

International Friends and Enemies

By Benny Kleinman, Ernest Liu, and Stephen J. Redding

American Economic Journal: Macroeconomics, October 2024

We examine whether, as countries become more economically dependent on a trade partner, they realign politically toward that trade partner. We use network measures of economic exposure to foreign productivity growth derived from the class of trade models ...

New Facts on Consumer Price Rigidity in the Euro Area

By Erwan Gautier, Cristina Conflitti, Riemer P. Faber, Brian Fabo, Ludmila Fadejeva, Valentin Jouvanceau, Jan-Oliver Menz, Teresa Messner, Pavlos Petroulas, Pau Roldan-Blanco, Fabio Rumler, Sergio Santoro, Elisabeth Wieland, and Hélène Zimmer

American Economic Journal: Macroeconomics, October 2024

Using CPI micro data for 11 euro area countries over 2010–2019, we document new findings on consumer price rigidity in the euro area: (i) the average frequency of price changes is 12 percent; (ii) the distribution of price changes is highly dispersed, w...

When Interest Rates Go Low, Should Public Debt Go High?

By Johannes Brumm, Xiangyu Feng, Laurence Kotlikoff, and Felix Kubler

American Economic Journal: Macroeconomics, October 2024

Is deficit finance free when real borrowing rates are routinely lower than growth rates? Specifically, can the government make all generations better off by perpetually taking from the young and giving to the old? We study this in stochastic closed- and o...

The Elasticity of Aggregate Output with Respect to Capital and Labor

By Dietrich Vollrath

American Economic Journal: Macroeconomics, October 2024

It is often assumed that the elasticity of GDP with respect to capital is one-third, but this assumes zero markups and an aggregate production function. I estimate the elasticity allowing markups to vary by industry and with a rich input-output structure....

Report of the Committee on the Status of Women in the Economics Profession

American Economic Review, May 2002

Report of the AEA Exploratory Committee on Economic Statistics

American Economic Review, May 2002

Front Matter

American Economic Journal: Microeconomics, November 2024

The Status Quo and Belief Polarization of Inattentive Agents: Theory and Experiment

By Vladimír Novák, Andrei Matveenko, and Silvio Ravaioli

American Economic Journal: Microeconomics, November 2024

We show that rational but inattentive agents can become polarized ex ante. We present how optimal information acquisition and subsequent belief formation depend crucially on the agent-specific status quo valuation. Beliefs can systematically—in expectat...

Consistent Depth of Reasoning in Level-k Models

By David J. Cooper, Enrique Fatas, Antonio J. Morales, and Shi Qi

American Economic Journal: Microeconomics, November 2024

Level-k models often assume that individuals employ a fixed depth of reasoning across different games. We study this assumption by having subjects make choices in five classes of games chosen to identify inconsistent depth of reasoning. We demonstr...

A New Era of Midnight Mergers: Antitrust Risk and Investor Disclosures

By John M. Barrios and Thomas G. Wollmann

American Economic Journal: Microeconomics, November 2024

Antitrust authorities search public documents to discover anti-competitive mergers. Thus, investor disclosures may alert them to deals that would otherwise go undetected, creating disincentives for managers to divulge certain transactions. We study this b...

Noncompete Agreements and the Welfare of Consumers

By Michael Lipsitz and Mark J. Tremblay

American Economic Journal: Microeconomics, November 2024

Employee spin-offs harm incumbent firms by increasing competition (benefiting consumers) and preventing firm owners from making beneficial investments in workers who may later spin off (harming consumers). We model noncompete agreements (NCAs) as solution...

Report of the Search Committee for the Editor of the JEP

American Economic Review, May 2002

Dual Moral Hazard and the Tyranny of Success

By Enrique Ide

American Economic Journal: Microeconomics, November 2024

I explain why current success can undermine an organization's ability to innovate. I consider a standard bandit problem between a safe and a risky arm with two modifications. First, a principal allocates resources. Second, an agent must install the risky ...

Recovering the Anchoring of Economic Valuations

By Liang Guo

American Economic Journal: Microeconomics, November 2024

We revisit the interpretation of the anchoring effect as evidence for nonexisting or arbitrary preferences. A theory of endogenous information acquisition (i.e., deliberation) is developed to rationalize the causal dependence of economic valuations on arb...

Bargaining in the Shadow of Uncertainty

By Marina Agranov, Hülya Eraslan, and Chloe Tergiman

American Economic Journal: Microeconomics, November 2024

In bargaining environments with stochastic future surplus, failing to delay agreement can be inefficient when the expected future surplus is sufficiently high. Theoretically, such inefficiencies never arise under unanimity rule but can arise under majorit...

Fair Shares and Selective Attention

By Dianna R. Amasino, Davide D. Pace, and Joël J. van der Weele

American Economic Journal: Microeconomics, November 2024

Attitudes toward fairness and redistribution differ along socioeconomic lines. To understand their formation, we conduct a large-scale experiment on attention to merit and luck and the effect of attention on fairness decisions. Randomly advantaged subject...