Market Contagion: Evidence from the Panics of 1854 and 1857

By Morgan Kelly and Cormac O Grada

American Economic Review, December 2000

To test a model of contagion--where individuals hear some bad news and communicate it to their acquaintances, who then pass it on, leading to a market panic--requires a knowledge of the information networks of participants, something hitherto unavailable....

Fair Shares: Accountability and Cognitive Dissonance in Allocation Decisions

By James Konow

American Economic Review, September 2000

Front Matter

American Economic Review, September 2000

Does Exchange-Rate Stability Increase Trade and Welfare?

By Philippe Bacchetta and Eric van Wincoop

American Economic Review, December 2000

This paper develops a simple general-equilibrium framework to study the effect of the exchange-rate system on trade and welfare. An important feature of the model is deviations from purchasing-power parity, caused by rigid price setting in buyers' currenc...

Learning and Forgetting: The Dynamics of Aircraft Production

By C. Lanier Benkard

American Economic Review, September 2000

Optimal Risk Adjustment in Markets with Adverse Selection: An Application to Managed Care

By Jacob Glazer and Thomas G. McGuire

American Economic Review, September 2000

Asset Markets: How They Are Affected by Tournament Incentives for Individuals

By Duncan James and R. Mark Isaac

American Economic Review, September 2000

Losing Sleep at the Market: The Daylight Saving Anomaly

By Mark J. Kamstra, Lisa A. Kramer, and Maurice D. Levi

American Economic Review, September 2000

Private Information and Trade Timing

By Lones Smith

American Economic Review, September 2000

Demand Reduction in Multiunit Auctions: Evidence from a Sportscard Field Experiment

By John A. List and David Lucking-Reiley

American Economic Review, September 2000

A Preference Regime Model of Bull and Bear Markets

By Stephen Gordon and Pascal St-Amour

American Economic Review, September 2000

Cooperation and Punishment in Public Goods Experiments

By Ernst Fehr and Simon Gächter

American Economic Review, September 2000

Does Culture Matter in Economic Behavior? Ultimatum Game Bargaining among the Machiguenga of the Peruvian Amazon

By Joseph Henrich

American Economic Review, September 2000

Meetings with Costly Participation

By Martin J. Osborne, Jeffrey S. Rosenthal, and Matthew A. Turner

American Economic Review, September 2000

We study a collective decision-making process in which people interested in an issue may participate, at a cost, in a meeting, and the resulting decision is a compromise among the participants' preferences. We show that the equilibrium number of participa...

Motivating Wealth-Constrained Actors

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

American Economic Review, September 2000

We examine how owners of productive resources (e.g. public enterprises or financial capital) optimally allocate their resources among wealth-constrained operators of unknown ability. Optimal allocations exhibit: (1) shared enterprise profit--the resource ...

A Representative Consumer Theory of Distribution

By Francesco Caselli and Jaume Ventura

American Economic Review, September 2000

This paper introduces various sources of consumer heterogeneity in one-sector representative consumer (RC) growth models and develops tools to study the evolution of the distribution of consumptions, assets, and incomes. These tools are applied to the Ram...

Intelligence, Social Mobility, and Growth

By John Hassler and Jose V. Rodriguez Mora

American Economic Review, September 2000

We develop a model where the allocation of human resources, intergenerational social mobility, and technological growth are jointly determined. High growth endogenously increases the equilibrium return to innate cognitive ability and makes the allocation ...

Aid, Policies, and Growth

By Craig Burnside and David Dollar

American Economic Review, September 2000

This paper uses a new database on foreign aid to examine the relationships among foreign aid, economic policies, and growth per capita GDP. We find that aid has a positive impact on growth in developing countries with good fiscal, monetary, and trade poli...

A Reassessment of the Relationship between Inequality and Growth

By Kristin J. Forbes

American Economic Review, September 2000

This paper challenges the current belief that income inequality has a negative relationship with economic growth. It uses an improved data set on income inequality, which not only reduces measurement error, but also allows estimation via a panel technique...

Endogenous Growth and Cross-Country Income Differences

By Peter Howitt

American Economic Review, September 2000

A multicountry Schumpeterian growth model is constructed. Because of technology transfer, R&D-performing countries converge to parallel growth paths; other countries stagnate. A parameter change that would have raised a country's growth rate in standard S...