Offshoring and Labor Markets

By David Hummels, Jakob R. Munch, and Chong Xiang

Journal of Economic Literature, September 2018

In this paper we survey the recent empirical literature on the effects of offshoring on wage, employment and displacement. We start with an overview of the measurement of offshoring, organizing our discussion around the three key elements of offshoring: t...

Generational Differences in Managing Personal Finances

By Bruce Carlin, Arna Olafsson, and Michaela Pagel

AEA Papers and Proceedings, May 2019

In this article, we provide a descriptive account of how people from different generations vary in their use of financial management technology, their access credit markets, and how they finance consumption and incur financial costs and penalties. We use ...

When Labor's Lost: Health, Family Life, Incarceration, and Education in a Time of Declining Economic Opportunity for Low-Skilled Men

[Symposium: The Problems of Men]

By Courtney C. Coile and Mark G. Duggan

Journal of Economic Perspectives, Spring 2019

The economic progress of US men has stagnated in recent decades. The labor force participation rate of men ages 25-54 peaked in the mid-1960s and has declined since then (according to the Bureau of Labor Statistics), while men's real median earnings hav...

International Trade with Indirect Additivity

By Paolo Bertoletti, Federico Etro, and Ina Simonovska

American Economic Journal: Microeconomics, May 2018

We develop a general equilibrium model of trade that features "indirectly additive" preferences and heterogeneous firms. Monopolistic competition generates markups that are increasing in firm productivity and in destination country per capita income, but ...

Gendered medicine

[Page]

How does homophily help explain the gender gap among physicians?

INOMICS Salary Survey for Economists

[News]

April 23, 2020

The survey will help INOMICS research the effect of the Covid-19 pandemic on the salaries and career prospects of economists.

After the flood

[Research Highlight]

April 22, 2020

Does economic activity move away from flood-prone areas after catastrophe strikes?

Flooded Cities

By Adriana Kocornik-Mina, Thomas K. J. McDermott, Guy Michaels, and Ferdinand Rauch

American Economic Journal: Applied Economics, April 2020

Does economic activity move away from areas that are at high risk of recurring shocks? We examine this question in the context of floods, which displaced more than 650 million people worldwide in the last 35 years. We study large urban floods using spatia...

Front Matter

American Economic Journal: Microeconomics, May 2020

Biased-Belief Equilibrium

By Yuval Heller and Eyal Winter

American Economic Journal: Microeconomics, May 2020

We investigate how distorted, yet structured, beliefs can persist in strategic situations. Specifically, we study two-player games in which each player is endowed with a biased-belief function that represents the discrepancy between a player's beliefs abo...

Digitizing Disclosure: The Case of Restaurant Hygiene Scores

By Weijia Dai and Michael Luca

American Economic Journal: Microeconomics, May 2020

Collaborating with Yelp and the City of San Francisco, we revisit a canonical example of quality disclosure by evaluating and helping to redesign the posting of restaurant hygiene scores on Yelp.com. We implement a two-stage intervention that separately i...

Regulatory Competition and the Market for Corporate Law

By Ofer Eldar and Lorenzo Magnolfi

American Economic Journal: Microeconomics, May 2020

This article develops an empirical model of firms' choice of corporate laws under inertia. Delaware dominates the incorporation market, though recently Nevada, a state whose laws are highly protective of managers, has acquired a sizable market share. Usin...

Incomplete Information Games with Ambiguity Averse Players

By Eran Hanany, Peter Klibanoff, and Sujoy Mukerji

American Economic Journal: Microeconomics, May 2020

We study incomplete information games with ambiguity averse players. Our focus is on equilibrium concepts satisfying sequential optimality—each player's strategy is optimal at each information set given opponents' strategies. We show sequential optimali...

Job Insecurity

By Aditya Kuvalekar and Elliot Lipnowski

American Economic Journal: Microeconomics, May 2020

We examine the relationship between job security and productivity in a fixed wage worker-firm relationship facing match quality uncertainty. The worker's action affects both learning and current productivity. The firm, seeing worker behavior and outcomes,...

The Economics of Crowdfunding

By Jen-Wen Chang

American Economic Journal: Microeconomics, May 2020

An entrepreneur finances her project via crowdfunding. She chooses a funding mechanism (fixed or flexible), a price, and a funding goal. Under fixed funding, money is refunded if the goal is not met; under flexible funding, there is no refund. Backers obs...

Revealed Preference Implications of Backward Induction and Subgame Perfection

By Pablo Schenone

American Economic Journal: Microeconomics, May 2020

Consider a decision-maker (DM) who must select an alternative from a set of mutually exclusive alternatives but must take this decision sequentially. If the DM's choice correspondence over subsets of alternatives satisfies the weak axiom of revealed prefe...

Keeping the lights on

[Page]

Should electricity be a right?

A Model of Secular Stagnation: Theory and Quantitative Evaluation

By Gauti B. Eggertsson, Neil R. Mehrotra, and Jacob A. Robbins

American Economic Journal: Macroeconomics, January 2019

This paper formalizes and quantifies the secular stagnation hypothesis, defined as a persistently low or negative natural rate of interest leading to a chronically binding zero lower bound (ZLB). Output-inflation dynamics and policy prescriptions are fund...

Discrimination via Symmetric Auctions

By Rahul Deb and Mallesh M. Pai

American Economic Journal: Microeconomics, February 2017

Discrimination (for instance, along the lines of race or gender) is often prohibited in auctions. This is legally enforced by preventing the seller from explicitly biasing the rules in favor of bidders from certain groups (for example, by subsidizing thei...

Paul Milgrom, Distinguished Fellow 2020

[Page]