A Theory of Political Transitions

By Daron Acemoglu and James A. Robinson

American Economic Review, September 2001

We develop a theory of political transitions inspired by the experiences of Western Europe and Latin America. Nondemocratic societies are controlled by a rich elite. The initially disenfranchised poor can contest power by threatening revolution, especiall...

Telecommunications Infrastructure and Economic Development: A Simultaneous Approach

By Lars-Hendrik Roller and Leonard Waverman

American Economic Review, September 2001

In this paper we investigate how telecommunications infrastructure affects economic growth. We use evidence from 21 OECD countries over a 20-year period to examine the impacts that telecommunications developments may have had. We jointly estimate a microm...

Is Free Trade Good for the Environment?

By Werner Antweiler, Brian R. Copeland, and M. Scott Taylor

American Economic Review, September 2001

This paper investigates how openness to international goods markets affects pollution concentrations. We develop a theoretical model to divide trade's impact on pollution into scale, technique, and composition effects and then examine this theory using da...

Social Culture and Economic Performance

By Hanming Fang

American Economic Review, September 2001

The connection between obtaining higher paying jobs and undertaking some seemingly irrelevant activity is interpreted as "social culture." In the context of a society trying to adopt a new technology, I show that by allowing the firms to give preferential...

What Accounts for the Variation in Retirement Wealth among U.S. Households?

By B. Douglas Bernheim, Jonathan Skinner, and Steven Weinberg

American Economic Review, September 2001

Even among households with similar socioeconomic characteristics, saving and wealth vary considerably. Life-cycle models attribute this variation to differences in time preference rates, risk tolerance, exposure to uncertainty, relative tastes for work an...

Increasing Returns versus National Product Differentiation as an Explanation for the Pattern of U.S.-Canada Trade

By Keith Head and John Ries

American Economic Review, September 2001

We evaluate two alternative models of international trade in differentiated products. An increasing returns model where varieties are linked to firms predicts home market effects: increases in a country's share of demand cause disproportionate increases i...

The Division of Spoils: Rent-Sharing and Discrimination in a Regulated Industry

By Sandra E. Black and Philip E. Strahan

American Economic Review, September 2001

Until the middle of the 1970s, regulations constrained banks' ability to enter new markets. Over the subsequent 25 years, states gradually lifted these restrictions. This paper tests whether rents fostered by regulation were shared with labor, and whether...

Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment

By Esther Duflo

American Economic Review, September 2001

Between 1973 and 1978, the Indonesian government engaged in one of the largest school construction programs on record. Combining differences across regions in the number of schools constructed with differences across cohorts induced by the timing of the p...

Estimating the Effect of Unearned Income on Labor Earnings, Savings, and Consumption: Evidence from a Survey of Lottery Players

By Guido W. Imbens, Donald B. Rubin, and Bruce I. Sacerdote

American Economic Review, September 2001

This paper provides empirical evidence about the effect of unearned income on earnings, consumption, and savings. Using an original survey of people playing the lottery in Massachusetts in the mid-1980s, we analyze the effects of the magnitude of lottery ...

How Liable Should a Lender Be? The Case of Judgment-Proof Firms and Environmental Risk: Comment

By Dieter Balkenborg

American Economic Review, June 2001

How Liable Should a Lender Be? The Case of Judgment-Proof Firms and Environmental Risk: Reply

By Rohan Pitchford

American Economic Review, June 2001

Independent Auditors' Report

American Economic Review, June 2001

Front Matter

American Economic Review, June 2001

Rising U.S. Earnings Inequality and Family Labor Supply: The Covariance Structure of Intrafamily Earnings

By Dean R. Hyslop

American Economic Review, September 2001

This paper studies the labor supply contributions to individual and family earnings inequality during the period of rising wage inequality in the early 1980's. Working couples have positively correlated labor market outcomes, which are almost entirely att...

Estimating the Knowledge-Capital Model of the Multinational Enterprise

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

American Economic Review, June 2001

Optimal Regional Redistribution under Asymmetric Information

By Massimo Bordignon, Paolo Manasse, and Guido Tabellini

American Economic Review, June 2001

How Liable Should a Lender Be? The Case of Judgment-Proof Firms and Environmental Risk: Comment

By Tracy R. Lewis and David E. M. Sappington

American Economic Review, June 2001

Monetary Instability, the Predictability of Prices, and the Allocation of Investment: An Empirical Investigation Using U.K. Panel Data

By Paul Beaudry, Mustafa Caglayan, and Fabio Schiantarelli

American Economic Review, June 2001

Business Fixed Investment and "Bubbles": The Japanese Case

By Robert S. Chirinko and Huntley Schaller

American Economic Review, June 2001

The Response of Expenditures to Anticipated Income Changes: Panel Data Estimates

By Martin Browning and M. Dolores Collado

American Economic Review, June 2001