Relational Incentive Contracts

By Jonathan Levin

American Economic Review, June 2003

Standard incentive theory models provide a rich framework for studying informational problems but assume that contracts can be perfectly enforced. This paper studies the design of self-enforced relational contracts. I show that optimal contracts often can...

Does Banning Affirmative Action Lower College Student Quality?

By Jimmy Chan and Erik Eyster

American Economic Review, June 2003

Verifying the Solution from a Nonlinear Solver: A Case Study

By B. D. McCullough and H. D. Vinod

American Economic Review, June 2003

The Carrot or the Stick: Rewards, Punishments, and Cooperation

By James Andreoni, William Harbaugh, and Lise Vesterlund

American Economic Review, June 2003

Risk Sharing and Industrial Specialization: Regional and International Evidence

By Sebnem Kalemli-Ozcan, Bent E. Sørensen, and Oved Yosha

American Economic Review, June 2003

Simple Menus of Contracts in Cost-Based Procurement and Regulation

By William P. Rogerson

American Economic Review, June 2003

Caballero Meets Bewley: The Permanent-Income Hypothesis in General Equilibrium

By Neng Wang

American Economic Review, June 2003

Consequences of Bank Distress During the Great Depression

By Charles W. Calomiris and Joseph R. Mason

American Economic Review, June 2003

An Empirical Analysis of the Risk Properties of Human Capital Returns

By Ignacio Palacios-Huerta

American Economic Review, June 2003

Collusive Practices in Repeated English Auctions: Experimental Evidence on Bidding Rings

By Owen R. Phillips, Dale J. Menkhaus, and Kalyn T. Coatney

American Economic Review, June 2003

Estimating the Knowledge-Capital Model of the Multinational Enterprise: Comment

By Bruce A. Blonigen, Ronald B. Davies, and Keith Head

American Economic Review, June 2003

Estimating the Knowledge-Capital Model of the Multinational Enterprise: Reply

By David L. Carr, James R. Markusen, and Keith E. Maskus

American Economic Review, June 2003

An Asset Allocation Puzzle: Comment

By Haim Shalit and Shlomo Yitzhaki

American Economic Review, June 2003

Endogenous Growth Without Scale Effects: Comment

By Chol-Won Li

American Economic Review, June 2003

Auditors' Report/Audited Financial Statements

American Economic Review, June 2003

The Misallocation of Housing Under Rent Control

By Edward L. Glaeser and Erzo F. P. Luttmer

American Economic Review, September 2003

The standard analysis of price controls assumes that goods are efficiently allocated, even when there are shortages. But if shortages mean that goods are randomly allocated across the consumers that want them, the welfare costs from misallocation may be g...

Social Security Investment in Equities

By Peter Diamond and John Geanakoplos

American Economic Review, September 2003

This paper explores the general-equilibrium impact of social security portfolio diversification into private securities, either through the trust fund or private accounts. The analysis depends critically on heterogeneities in saving, production, assets, a...

On the Evolution of the Firm Size Distribution: Facts and Theory

By Luís M B Cabral and José Mata

American Economic Review, September 2003

Using a comprehensive data set of Portuguese manufacturing firms, we show that the firm size distribution is significantly right-skewed, evolving over time toward a lognormal distribution. We also show that selection accounts for very little of this evolu...

Inequality and Growth: Why Differential Fertility Matters

By David de la Croix and Matthias Doepke

American Economic Review, September 2003

We develop a new theoretical link between inequality and growth. In our model, fertility and education decisions are interdependent. Poor parents decide to have many children and invest little in education. A mean-preserving spread in the income distribut...

Interpreting Aggregate Wage Growth: The Role of Labor Market Participation

By Richard Blundell, Howard Reed, and Thomas M. Stoker

American Economic Review, September 2003

A new and easily implementable framework for the empirical analysis of the relationship between aggregate and individual wages is developed. Aggregate real wages are shown to contain three important bias terms: one associated with the dispersion of indivi...