Endogenous Lobby Formation and Endogenous Protection: A Long-Run Model of Trade Policy Determination

By Devashish Mitra

American Economic Review, December 1999

This paper provides a theory of lobby formation within a framework in which trade policy is determined through political contributions. Under certain conditions, free trade turns out to be an equilibrium outcome either when the government has a high affin...

Legal Reform and Loan Repayment: The Microeconomic Impact of Debt Recovery Tribunals in India

By Sujata Visaria

American Economic Journal: Applied Economics, July 2009

In 1993, the Indian government introduced debt recovery tribunals to speed up the resolution of debt recovery claims larger than a threshold. This paper exploits the staggered introduction of tribunals across states and the link between overdues and cl...

Recommendations for Further Reading

By Bernard Saffran

Journal of Economic Perspectives, Summer 1989

Behavioral CEOs: The Role of Managerial Overconfidence

[Symposium: Overconfidence]

By Ulrike Malmendier and Geoffrey Tate

Journal of Economic Perspectives, Fall 2015

In this paper, we provide a theoretical and empirical framework that allows us to synthesize and assess the burgeoning literature on CEO overconfidence. We also provide novel empirical evidence that overconfidence matters for corporate investment de...

Time Allocation and Task Juggling

By Decio Coviello, Andrea Ichino, and Nicola Persico

American Economic Review, February 2014

A single worker allocates her time among different projects which are progressively assigned. When the worker works on too many projects at the same time, the output rate decreases and completion time increases according to a law which we derive. We call...

Secession and the Limits of Taxation: Toward a Theory of Internal Exit: Comment

By Grégoire Rota Graziosi

American Economic Review, March 2007

Economic Incentives and Social Preferences: Substitutes or Complements?

By Samuel Bowles and Sandra Polania-Reyes

Journal of Economic Literature, June 2012

Explicit economic incentives designed to increase contributions to public goods and to promote other pro-social behavior sometimes are counterproductive or less effective than would be predicted among entirely self-interested individuals. This may occur ...

Risk Matters: The Real Effects of Volatility Shocks: Comment

By Benjamin Born and Johannes Pfeifer

American Economic Review, December 2014

We show that the risk-shock business cycle model of Fernández-Villaverde et al. (2011) must be recalibrated because it underpredicts the targeted business cycle moments by a factor of three once a time aggregation error is corrected. Recalibrating the co...

Recommendations for Further Reading

By Bernard Saffran

Journal of Economic Perspectives, Winter 1993

How Much Would You Pay to Resolve Long-Run Risk?

By Larry G. Epstein, Emmanuel Farhi, and Tomasz Strzalecki

American Economic Review, September 2014

Though risk aversion and the elasticity of intertemporal substitution have been the subjects of careful scrutiny, the long-run risks literature as well as the broader literature using recursive utility to address asset pricing puzzles have ignored the ful...

What Do (and Don't) We Know about the Value Added Tax? A Review of Richard M. Bird and Pierre-Pascal Gendron's The VAT in Developing and Transitional Countries

By Michael Keen

Journal of Economic Literature, March 2009

The VAT has taken the tax world by storm over the last fifty years, but left little trace in the academic literature. Bird and Gendron provide an impressively informed and informative account of the VAT experience in lower income countries, largely vind...

The Dynamics of Open-Source Contributors

By Josh Lerner, Parag A. Pathak, and Jean Tirole

American Economic Review, May 2006

Marriage Laws and Growth in Sub-Saharan Africa

By Todd Schoellman and Michèle Tertilt

American Economic Review, May 2006

How Does Risk Selection Respond to Risk Adjustment? New Evidence from the Medicare Advantage Program

By Jason Brown, Mark Duggan, Ilyana Kuziemko, and William Woolston

American Economic Review, October 2014

To combat adverse selection, governments increasingly base payments to health plans and providers on enrollees' scores from risk-adjustment formulae. In 2004, Medicare began to risk-adjust capitation payments to private Medicare Advantage (MA) plans to ...

Beyond Work Ethic: Religion, Individual, and Political Preferences

By Christoph Basten and Frank Betz

American Economic Journal: Economic Policy, August 2013

We investigate the effect of Reformed Protestantism, relative to Catholicism, on preferences for leisure, and for redistribution and intervention in the economy. We use a Fuzzy Spatial Regression Discontinuity Design to exploit a historical quasi-experime...

Benefits of Neuroeconomic Modeling: New Policy Interventions and Predictors of Preference

By Ian Krajbich, Bastiaan Oud, and Ernst Fehr

American Economic Review, May 2014

Neuroeconomics strives to use knowledge from neuroscience to improve models of decisionmaking. Here we introduce a biologically plausible, drift-diffusion model that is able to jointly predict choice behavior and response times across different choice env...

Asymmetric Networks in Two-Sided Markets

By Attila Ambrus and Rossella Argenziano

American Economic Journal: Microeconomics, February 2009

This paper investigates pricing decisions and network choices in two-sided markets with network externalities. Consumers are heterogeneous in how much they value the externality. Imposing restrictions on the extent of coordination failure among consume...

Contagious Adverse Selection

By Stephen Morris and Hyun Song Shin

American Economic Journal: Macroeconomics, January 2012

We illustrate the corrosive effect of even small amounts of adverse selection in an asset market and show how it can lead to the total breakdown of trade. The problem is the failure of "market confidence," defined as approximate common knowledge of an upp...

Anomalies: The January Effect

By Richard H. Thaler

Journal of Economic Perspectives, Summer 1987

This feature will report successful searches for disconfirming evidence -- economic anomalies. As suggested by Thomas Kuhn, an economic anomaly is a result inconsistent with the present economics paradigm. Economics is distinguished from other social scie...

The "Collapse in Quality" Hypothesis

By Andrei A. Levchenko, Logan T. Lewis, and Linda L. Tesar

American Economic Review, May 2011

This paper evaluates the hypothesis that during the 2008-2009 collapse in international trade, imports of higher quality goods experienced larger reductions compared to low-quality imports, using data on US imports disaggregated by HS-10 product category ...