Social Distance and Other-Regarding Behavior in Dictator Games: Reply

By Elizabeth Hoffman, Kevin McCabe, and Vernon L. Smith

American Economic Review, March 1999

Optimal Inflation Targets, "Conservative" Central Banks, and Linear Inflation Contracts: Comment

By Roel M. W. J. Beetsma and Henrik Jensen

American Economic Review, March 1999

Front Matter

American Economic Review, March 1999

The Winner's Curse and Public Information in Common Value Auctions: Reply

By Colin M. Campbell, John H. Kagel, and Dan Levin

American Economic Review, March 1999

Social Distance and Other-Regarding Behavior in Dictator Games: Comment

By Iris Bohnet and Bruno S. Frey

American Economic Review, March 1999

Can Affirmative Action Be Cost Effective? An Experimental Examination of Price-Preference Auctions

By Allan Corns and Andrew Schotter

American Economic Review, March 1999

Overconfidence and Excess Entry: An Experimental Approach

By Colin Camerer and Dan Lovallo

American Economic Review, March 1999

The Winner's Curse and Public Information in Common Value Auctions: Comment

By James C. Cox, Samuel H. Dinkin, and Vernon L. Smith

American Economic Review, March 1999

Scale Economies and Industry Agglomeration Externalities: A Dynamic Cost Function Approach

By Catherine J. Morrison Paul and Donald S. Siegel

American Economic Review, March 1999

Scale economies and agglomeration externalities are alleged to be important determinants of economic growth. To assess these effects, the authors outline and estimate a microfoundations model based on a dynamic cost function specification. This model prov...

Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?

By Jordi Galí

American Economic Review, March 1999

The author estimate a decomposition of productivity and hours into technology and nontechnology components. Two results stand out: (1) the estimated conditional correlations of hours and productivity are negative for technology shocks, positive for nontec...

An Economic Theory of GATT

By Kyle Bagwell and Robert W. Staiger

American Economic Review, March 1999

The authors propose a unified theoretical framework within which to interpret and evaluate the foundational principles of GATT. Working within a general equilibrium trade model, they represent government preferences in a way that is consistent with nation...

The Role of Multilateral Institutions in International Trade Cooperation

By Giovanni Maggi

American Economic Review, March 1999

The World Trade Organization (WFO) lacks the power to directly enforce agreements. It is, therefore, important to understand what role the WTO can play to facilitate international cooperation and whether a multilateral institution can offer distinct advan...

The Generalized War of Attrition

By Jeremy Bulow and Paul Klemperer

American Economic Review, March 1999

The authors model a war of attrition with N+K firms competing for N prizes. In a 'natural oligopoly' context, the K - 1 lowest-value firms drop out instantaneously, even though each firm's value is private information to itself. In a 'standard setting' co...

Rules of Thumb versus Dynamic Programming

By Martin Lettau and Harald Uhlig

American Economic Review, March 1999

This paper studies decisionmaking with rules of thumb in the context of dynamic decision problems and compares it to dynamic programming. A rule is a fixed mapping from a subset of states into actions. Rules are compared by averaging over past experiences...

Cooperative Investments and the Value of Contracting

By Yeon-Koo Che and Donald B. Hausch

American Economic Review, March 1999

Recent articles have shown that contracts can support the efficient outcome for bilateral trade even in the face of specific investments and incomplete contracting. These studies typically considered 'selfish' investments that benefit the investor (e.g., ...

Doing It Now or Later

By Ted O'Donoghue and Matthew Rabin

American Economic Review, March 1999

The authors examine self-control problems--modeled as time-inconsistent, present-biased preferences--in a model where a person must do an activity exactly once. They emphasize two distinctions: do activities involve immediate costs or immediate rewards, a...

Technological Revolutions

By Francesco Caselli

American Economic Review, March 1999

In skill-biased (deskilling) technological revolutions, learning investments required by new machines are greater (smaller) than those required by preexisting machines. Skill-biased (deskilling) revolutions trigger reallocations of capital from slow- (fas...

Endogenous Technological Change and Wage Inequality

By Huw Lloyd-Ellis

American Economic Review, March 1999

Although microeconomic studies find a positive relationship between R&D and skill premia, much of the recent rise in U.S. wage inequality was accompanied by slowing labor-productivity growth and relatively slow introduction of new technologies. These conf...

The Voracity Effect

By Aaron Tornell and Philip R. Lane

American Economic Review, March 1999

The authors analyze an economy that lacks a strong legal-political institutional infrastructure and is populated by multiple powerful groups. Powerful groups dynamically interact via a fiscal process that effectively allows open access to the aggregate ca...

Catching Up with the Economy

By Robert W. Fogel

American Economic Review, March 1999