The Impact of Unemployment Benefit Extensions on Employment: The 2014 Employment Miracle?

By Marcus Hagedorn, Iourii Manovskii, and Kurt Mitman

American Economic Journal: Macroeconomics, October 2025

We measure the aggregate effect of unemployment benefit duration on employment and the labor force. We exploit the variation induced by Congress's failure in December 2013 to reauthorize the unprecedented benefit extensions introduced during the Great Rec...

Real Exchange Rates and Endogenous Productivity

By Nils Gornemann, Pablo A. Guerrón Quintana, and Felipe Saffie

American Economic Journal: Macroeconomics, October 2025

Two-thirds of the real exchange rate's (RER's) volatility occurs at low frequencies. We provide empirical evidence that links movements in the RER to changes in research and development spending and patents. A two-country real business cycle model with en...

Time to Say Goodbye: The Macroeconomic Implications of Termination Notice

By Tomer Ifergane

American Economic Journal: Macroeconomics, October 2025

Insuring households against unemployment risk is a cornerstone of modern economic policy. Many countries provide unemployment insurance partly by employment protection mandates, most commonly using termination notice mandates. Unlike unemployment insuranc...

GDP-B: Accounting for the Value of New and Free Goods

By Erik Brynjolfsson, Avinash Collis, W. Erwin Diewert, Felix Eggers, and Kevin J. Fox

American Economic Journal: Macroeconomics, October 2025

The welfare contributions of new goods and free goods are not well-measured in standard statistical agency metrics like GDP or productivity. We derive explicit terms for the contributions of these goods and introduce a new framework and metric, GDP-B, whi...

Changing Business Cycles: The Role of Women's Employment

By Stefania Albanesi

American Economic Journal: Macroeconomics, October 2025

Women's labor force participation in the United States rose rapidly until the mid-1990s when it flattened out. I examine the impact of this change in trend on aggregate business cycles with a quantitative model that incorporates gender differences. I show...

Market Segmentation and International Bond Prices: The Role of ECB Asset Purchases

By Ester Faia, Juliana Salomao, and Alexia Ventula Veghazy

American Economic Journal: Macroeconomics, October 2025

We estimate euro-dollar yields differences, hedged and unhedged, with euro area confidential corporate bond holdings data. We find that euro yields significantly decline relative to dollar yields—more for securities in the portfolios of investors that p...

Preference Reversals of a Different Kind: The "More Is Less" Phenomenon

By John A. List

American Economic Review, December 2002

Adjustable Product Attributes, Indirect Network Effects, And Subsidy Design: The Case of Electric Vehicles

By Kevin Remmy

American Economic Journal: Economic Policy

This paper develops a structural model of endogenous product attribute choice in the presence of indirect network effects to study electric vehicle (EV) subsidies. Using data on the German EV market, I find that a support scheme almost doubled EV sales...

Guaranteed Employment in Rural India: Intra-Household Labor and Resource Allocation Consequences

By Jorge Luis García

American Economic Journal: Economic Policy

I investigate the intra-household labor and resource allocation consequences of an employment guarantee targeting rural households in India. The guarantee insures household earnings, replacing women as added workers and shutting down a motive for savin...

The Welfare Effects of Eligibility Expansions: Theory and Evidence from SNAP

By Jenna Anders and Charlie Rafkin

American Economic Journal: Economic Policy

We study how eligibility expansions in the U.S. Supplemental Nutrition Assistance Program affect take-up among previously eligible households and social welfare. Using an event study with administrative take-up data, we document a “woodwork effect”:...

Integrating Out Natural Disaster Shocks

By Franziska Bremus and Malte Rieth

American Economic Journal: Economic Policy

We study the role of international financial integration in buffering natural disaster shocks, using a large sample of advanced and emerging economies. Natural disasters are largely unpredictable and unrelated to the state of financial integration. We doc...

Inclusive Teaching: Spotting Social Isolation in the Classroom

By Sule Alan, Michela Carlana, and Marinella Leone

American Economic Journal: Economic Policy

We evaluate an intervention aimed at addressing social isolation in classrooms. The treatment provides teachers with their students’ social networks and information on developmental risks associated with social exclusion. Using friendship data and in...

Cooking, Health, and Daily Exposure to Pollution Spikes

By Susanna B. Berkouwer and Joshua T. Dean

American Economic Journal: Economic Policy

Many routine daily activities—such as cooking and commuting—cause large recurring pollution spikes that may impact health without significantly affecting average exposure. We study pollution spikes by combining experimental variation in cooking tec...

The Theory of Financial Stability Meets Reality: A Unifying Framework for Bank Regulation and Accounting Discretion

By Nina Boyarchenko, Kinda Hachem, and Anya Kleymenova

Journal of Economic Literature

A large literature at the intersection of economics and finance offers prescriptions for regulating banks to increase financial stability. This literature abstracts from the discretion that accounting standards give banks over financial reporting, creatin...

Which Reference Groups Matter and How? A Relative Income Information Experiment with Administrative Data

By Xiaogeng Xu, Satu Metsälampi, Michael Kirchler, Kaisa Kotakorpi, Peter Hans Matthews, and Topi Miettinen

American Economic Journal: Applied Economics

The Welfare Economics of Reference Dependence

By Daniel Reck and Arthur Seibold

American Economic Journal: Applied Economics

We analyze welfare under reference-dependent preferences. We decompose the first-order welfare effects of reference-point and price changes into direct and behavioral effects. The sign of these effects depends on the form of reference-dependent payoffs;...

Long Wars

By Sandeep Baliga and Tomas Sjöström

American Economic Review: Insights

We study whether the Coase conjecture holds for bargaining during war. Two players, A and B, contest a divisible resource until one side collapses or agreement is reached. If player B is militarily strong then he insists on getting a large share. Howev...

Risk Aversion and Incentive Effects

By Charles A. Holt and Susan K. Laury

American Economic Review, December 2002

Breaking Bad News

By Moritz Meyer-ter-Vehn and Simon Board

American Economic Review: Insights

We study how information disclosure shapes social learning about a potentially harmful product. Increased transparency helps early agents avoid harm, which may undermine learning by later agents. Despite this conflict of interest, we show that full tra...

Short- and Long-Term Effects of Universal Preschool: Evidence from the Arab Population in Israel

By Elad DeMalach and Analia Schlosser

American Economic Journal: Economic Policy

We estimate the causal impacts of universal preschool by leveraging a quasi-experimental design based on Israel’s implementation of free public preschool for children ages 3 and 4 beginning in September 1999. We focus on the Arab population, who were...