Recommendations for Further Reading

By Timothy Taylor

Journal of Economic Perspectives, Spring 2007

Notes

Journal of Economic Perspectives, Spring 2007

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...

Automobile Externalities and Policies

By Ian W. H. Parry, Margaret Walls, and Winston Harrington

Journal of Economic Literature, June 2007

This paper discusses the nature, and magnitude, of externalities associated with automobile use, including local and global pollution, oil dependence, traffic congestion and traffic accidents. It then discusses current federal policies affecting these ...

Global Capital Markets in the Long Run: A Review of Maurice Obstfeld and Alan Taylor's Global Capital Markets

By Jeffrey G. Williamson

Journal of Economic Literature, June 2007

Written by Maurice Obstfeld and Alan Taylor, Global Capital Markets: Integration, Crisis, and Growth was a much-needed book that will be cited extensively by those with interests in the long run evolution of the world financial capital market. The ...

A Review of Richard Layard, Stephen Nickell, and Richard Jackman's Unemployment: Macroeconomic Performance and the Labour Market

By Olivier Blanchard

Journal of Economic Literature, June 2007

Unemployment: Macroeconomic Performance and the Labour Market by Richard Layard, Stephen Nickell, and Richard Jackman (Oxford University Press 2005) is the second edition of a book first published in 1991. The second edition is identical to the fi...

Optimal Executive Compensation versus Managerial Power: A Review of Lucian Bebchuk and Jesse Fried's Pay without Performance: The Unfulfilled Promise of Executive Compensation

By Michael S. Weisbach

Journal of Economic Literature, June 2007

This essay reviews Lucian A. Bebchuk and Jesse M. Fried's Pay without Performance: The Unfulfilled Promise of Executive Compensation. Bebchuk and Fried criticize the standard view of executive compensation, in which executives negotiate contracts w...

Book Reviews

Journal of Economic Literature, June 2007

Annotated Listing of New Books

Journal of Economic Literature, June 2007

JEL Classification System

Journal of Economic Literature, June 2007

Macroeconomics for a Modern Economy

By Edmund S. Phelps

American Economic Review, June 2007

Relative Prices and Relative Prosperity

By Chang-Tai Hsieh and Peter J. Klenow

American Economic Review, June 2007

The positive correlation between real investment rates and real income levels across countries is driven largely by differences in the price of investment relative to output. The high relative price of investment in poor countries is due to the low pric...

Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach

By Frank Smets and Rafael Wouters

American Economic Review, June 2007

Using a Bayesian likelihood approach, we estimate a dynamic stochastic general equilibrium model for the US economy using seven macroeconomic time series. The model incorporates many types of real and nominal frictions and seven types of structural sho...

Generalizing the Taylor Principle

By Troy Davig and Eric M. Leeper

American Economic Review, June 2007

The paper generalizes the Taylor principle—the proposition that central banks can stabilize the macroeconomy by raising their interest rate instrument more than one-for-one in response to higher inflation—to an environment in which reaction c...

The Timing of Monetary Policy Shocks

By Giovanni Olivei and Silvana Tenreyro

American Economic Review, June 2007

A vast empirical literature has documented delayed and persistent effects of monetary policy shocks on output. We show that this finding results from the aggregation of output impulse responses that differ sharply depending on the timing of the shock. ...

Job Displacement Risk and the Cost of Business Cycles

By Tom Krebs

American Economic Review, June 2007

This paper analyzes the welfare costs of business cycles when workers face uninsurable job displacement risk. The paper uses a simple macroeconomic model with incomplete markets to show that cyclical variations in the long-term earnings losses of displ...

Learning Your Earning: Are Labor Income Shocks Really Very Persistent?

By Fatih Guvenen

American Economic Review, June 2007

The current literature offers two views on the nature of the labor income process. According to the first view, individuals are subject to very persistent income shocks while facing similar life-cycle income profiles (the RIP process, Thomas MaCurdy 19...

Valuing New Goods in a Model with Complementarity: Online Newspapers

By Matthew Gentzkow

American Economic Review, June 2007

Many important economic questions hinge on the extent to which new goods either crowd out or complement consumption of existing products. Recent methods for studying new goods rule out complementarity by assumption, so their applicability to these ques...

Estimating Risk Preferences from Deductible Choice

By Alma Cohen and Liran Einav

American Economic Review, June 2007

We develop a structural econometric model to estimate risk preferences from data on deductible choices in auto insurance contracts. We account for adverse selection by modeling unobserved heterogeneity in both risk (claim rate) and risk aversion. We fi...

Estimating the Effects of Private School Vouchers in Multidistrict Economies

By Maria Marta Ferreyra

American Economic Review, June 2007

This paper estimates a general equilibrium model of school quality and household residential and school choice for economies with multiple public school districts and private (religious and nonsectarian) schools. The estimates, obtained through full-so...