Decentralization, Hierarchies, and Incentives: A Mechanism Design Perspective

By Dilip Mookherjee

Journal of Economic Literature, June 2006

Separation of ownership from management, multidivisional firm organizations, delegation of production decisions to worker teams, delegation of pricing and advertising decisions to retail franchisers, reliance on intermediaries in trade or finance, and d...

Recommendations for Further Reading

By Timothy Taylor

Journal of Economic Perspectives, Fall 2009

The Role of Unemployment in the Rise in Alternative Work Arrangements

By Lawrence F. Katz and Alan B. Krueger

American Economic Review, May 2017

The share of U.S. workers in alternative work arrangements has increased substantially in recent decades. Micro longitudinal analyses show that unemployed workers are much more likely to transition into alternative work arrangements than other workers. Ma...

Do Expert Reviews Affect the Demand for Wine?

By Richard Friberg and Erik Grönqvist

American Economic Journal: Applied Economics, January 2012

We examine the demand for wines in Sweden using five years of weekly data on sales, advertising, and expert reviews. The effect of a favorable review peaks in the week after publication with an increase in demand of 6 percent, and the effect remains signi...

Voting on the Budget Deficit: Comment

By Ben D. Peletier, Robert A. J. Dur, and Otto H. Swank

American Economic Review, December 1999

Front Matter

American Economic Journal: Applied Economics, October 2011

Should America Save for Its Old Age? Fiscal Policy, Population Aging, and National Saving

[Symposium: Fiscal Policy]

By Douglas W. Elmendorf and Louise M. Sheiner

Journal of Economic Perspectives, Summer 2000

We examine whether the aging of the U.S. population adds force to traditional arguments for boosting national saving and conclude--perhaps surprisingly--that it may not. Aging boosts the demands on future resources, but it also changes the rate of return ...

Partisan Grading

By Talia Bar and Asaf Zussman

American Economic Journal: Applied Economics, January 2012

We study grading outcomes associated with professors in an elite university in the United States who were identified—using voter registration records from the county where the university is located—as either Republicans or Democrats. The evide...

Loss Aversion and Consumption Choice: Theory and Experimental Evidence

By Heiko Karle, Georg Kirchsteiger, and Martin Peitz

American Economic Journal: Microeconomics, May 2015

We analyze a consumer-choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. Pa...

Monetary Commitment and Fiscal Discretion: The Optimal Policy Mix

By Stefano Gnocchi

American Economic Journal: Macroeconomics, April 2013

We study a noncooperative policy game between monetary and fiscal policy, where only monetary policy can commit to future actions. The equilibrium outcome of the game depends on the strategies available to the monetary policymaker. If strategies are le...

The Cyclical Volatility of Labor Markets under Frictional Financial Markets

By Nicolas Petrosky-Nadeau and Etienne Wasmer

American Economic Journal: Macroeconomics, January 2013

We provide a dynamic extension of an economy with search on credit and labor markets (Wasmer and Weil 2004). Financial frictions create volatility. They add an additional, almost acyclical, entry cost to procyclical job creation costs, thus increasing ...

Overcoming Adverse Selection: How Public Intervention Can Restore Market Functioning

By Jean Tirole

American Economic Review, February 2012

The paper provides a first analysis of market jump starting and its two-way interaction between mechanism design and participation constraints. The government optimally overpays for the legacy assets and cleans up the market of its weakest assets, through...

Global Supply Chains and Wage Inequality

By Arnaud Costinot, Jonathan Vogel, and Su Wang

American Economic Review, May 2012

A salient feature of globalization in recent decades is the emergence of "global supply chains" in which different countries specialize in different stages of a sequential production process. In Costinot, Vogel and Wang (2011) (CVW hereafter), we have dev...

The Information-Technology Revolution and the Stock Market

By Jeremy Greenwood and Boyan Jovanovic

American Economic Review, May 1999

Matching in Networks with Bilateral Contracts

By John William Hatfield and Scott Duke Kominers

American Economic Journal: Microeconomics, February 2012

We introduce a model in which firms trade goods via bilateral contracts which specify a buyer, a seller, and the terms of the exchange. This setting subsumes (many-to-many) matching with contracts, as well as supply chain matching. When firms' relationshi...

Business Groups in Emerging Markets: Paragons or Parasites?

By Tarun Khanna and Yishay Yafeh

Journal of Economic Literature, June 2007

Diversified business groups, consisting of legally independent firms operating across diverse industries, are ubiquitous in emerging markets. Groups around the world share certain attributes but also vary substantially in structure, ownership, and other...

Ready for Boarding? The Effects of a Boarding School for Disadvantaged Students

By Luc Behaghel, Clément de Chaisemartin, and Marc Gurgand

American Economic Journal: Applied Economics, January 2017

Boarding schools substitute school to home, but little is known on the effects this substitution produces on students. We present results of an experiment in which seats in a boarding school for disadvantaged students were randomly allocated. Boarders enj...

Forces Shaping Hours Worked in the OECD, 1960-2004

By Cara McDaniel

American Economic Journal: Macroeconomics, October 2011

The goal of this paper is to examine the role of taxes and productivity growth as forces influencing market hours. To achieve this goal, the paper considers a calibrated growth model extended to include home production and subsistence consumption, both of...

Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments

[Symposium: Econometric Tools]

By Joshua D. Angrist and Alan B. Krueger

Journal of Economic Perspectives, Fall 2001

Instrumental variables was first used in the 1920s to estimate supply and demand elasticities and later to correct for measurement error in single equation models. Recently, instrumental variables have been widely used to reduce bias from omitted variable...

The Young Person's Guide to Writing Economic Theory

By William Thomson

Journal of Economic Literature, March 1999

I formulate recommendations to young authors for writing economic theory well. I state general principles of good writing, and emphasize the role of the different components of a paper and the importance of the structure of one's work being clear. I expla...