Shopping for Lower Sales Tax Rates

By Scott R. Baker, Stephanie Johnson, and Lorenz Kueng

American Economic Journal: Macroeconomics, July 2021

Using comprehensive high-frequency state and local sales tax data, we show that shopping behavior responds strongly to changes in sales tax rates. Even though sales taxes are not observed in posted prices and have a wide range of rates and exemptions, c...

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Paying attention to price hikes

[Research Highlight]

June 22, 2021

How do consumers respond to increases in sales tax?

On Her Own Account: How Strengthening Women's Financial Control Impacts Labor Supply and Gender Norms

By Erica Field, Rohini Pande, Natalia Rigol, Simone Schaner, and Charity Troyer Moore

American Economic Review, July 2021

Can increasing control over earnings incentivize a woman to work, and thereby influence norms around gender roles? We randomly varied whether rural Indian women received bank accounts, training in account use, and direct deposit of public sector wages int...

Does Biology Drive Child Penalties? Evidence from Biological and Adoptive Families

By Henrik Kleven, Camille Landais, and Jakob Egholt Søgaard

American Economic Review: Insights, June 2021

This paper investigates whether the impact of children on the labor market outcomes of women relative to men—child penalties—can be explained by the biological links between mother and child. We estimate child penalties in biological and adoptive fami...

A Network of Thrones: Kinship and Conflict in Europe, 1495–1918

By Seth G. Benzell and Kevin Cooke

American Economic Journal: Applied Economics, July 2021

We construct a database linking European royal kinship networks, monarchies, and wars to study the effect of family ties on conflict. To establish causality, we exploit decreases in connection caused by apolitical deaths of rulers' mutual relatives. These...

Using Synthetic Controls: Feasibility, Data Requirements, and Methodological Aspects

By Alberto Abadie

Journal of Economic Literature, June 2021

Probably because of their interpretability and transparent nature, synthetic controls have become widely applied in empirical research in economics and the social sciences. This article aims to provide practical guidance to researchers employing synthetic...

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July 06, 2021

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More than a few bad apples

[Research Highlight]

July 06, 2021

Steven Mello discusses discrimination within the Florida Highway Patrol and what it reveals about racial bias in the US.

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Family ties

[Research Highlight]

July 06, 2021

The relationship between kinship networks and war.

Understanding the child penalty

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Can biology explain gender-based differences in earnings after the birth of a child?

The fallout of bankruptcy reform

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What are the economic consequences of making it more difficult for individuals to file for bankruptcy protection?

Long-Term Contextual Effects in Education: Schools and Neighborhoods

By Jean-William Laliberté

American Economic Journal: Economic Policy, May 2021

This paper estimates the long-term impact of growing up in better neighborhoods and attending better schools on educational attainment. First, I use a spatial regression-discontinuity design to estimate school effects. Second, I study students who move ac...