Bargaining with Deadlines and Private Information

By William Fuchs and Andrzej Skrzypacz

American Economic Journal: Microeconomics, November 2013

We study dynamic bargaining with private information and a deadline. As commitment power disappears, there is a clear "deadline effect." That is, trade takes place smoothly before the deadline and with an atom right at the deadline. Prices, timing of t...

On the Efficiency of Codeshare Contracts between Airlines: Is Double Marginalization Eliminated?

By Philip G. Gayle

American Economic Journal: Microeconomics, November 2013

Previous research has suggested that codeshare agreements eliminate double marginalization that exists when unaffiliated airlines independently determine the price for different segments of an interline trip. Using a structural econometric model, this ...

Front Matter

American Economic Journal: Microeconomics, November 2013

Effects of Federal Policy to Insure Young Adults: Evidence from the 2010 Affordable Care Act's Dependent-Coverage Mandate

By Yaa Akosa Antwi, Asako S. Moriya, and Kosali Simon

American Economic Journal: Economic Policy, November 2013

Using data from the Survey of Income and Program Participation (SIPP), we study the health insurance and labor market implications of the recent Affordable Care Act (ACA) provision that allows dependents to remain on parental policies until age 26. Our...

Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects

By Sascha O. Becker, Peter H. Egger, and Maximilian von Ehrlich

American Economic Journal: Economic Policy, November 2013

Researchers often estimate average treatment effects of programs without investigating heterogeneity across units. Yet, individuals, firms, regions, or countries vary in their ability to utilize transfers. We analyze Objective 1 transfers of the EU to ...

Profiting from Regulation: Evidence from the European Carbon Market

By James B. Bushnell, Howard Chong, and Erin T. Mansur

American Economic Journal: Economic Policy, November 2013

We investigate how cap-and-trade regulation affects profits. In late April 2006, the EU CO2 allowance price dropped 50 percent, equating to a €28 billion reduction in the value of aggregate annual allowances. We examine daily returns for 552 stocks f...

Measuring the Environmental Benefits of Wind-Generated Electricity

By Joseph Cullen

American Economic Journal: Economic Policy, November 2013

Production subsidies for renewable energy, such as solar or wind power, are rationalized by their environmental benefits. Subsidizing these projects allows clean, renewable technologies to produce electricity that otherwise would have been produced by ...

Death by Market Power: Reform, Competition, and Patient Outcomes in the National Health Service

By Martin Gaynor, Rodrigo Moreno-Serra, and Carol Propper

American Economic Journal: Economic Policy, November 2013

The effect of competition on the quality of health care remains a contested issue. Most empirical estimates rely on inference from nonexperimental data. In contrast, this paper exploits a procompetitive policy reform to provide estimates of the impact ...

Superstar Cities

By Joseph Gyourko, Christopher Mayer, and Todd Sinai

American Economic Journal: Economic Policy, November 2013

We document large long-run differences in average house price appreciation across metropolitan areas over the past 50 years, and show they can be explained by an inelastic supply of land in some unique locations combined with an increasing number of hi...

State Gun Policy and Cross-State Externalities: Evidence from Crime Gun Tracing

By Brian Knight

American Economic Journal: Economic Policy, November 2013

This paper provides a theoretical and empirical analysis of crossstate externalities associated with gun regulations that impact gun trafficking. Using tracing data, which identify the source state for crime guns recovered in destination states, we fin...

Corruption Dynamics: The Golden Goose Effect

By Paul Niehaus and Sandip Sukhtankar

American Economic Journal: Economic Policy, November 2013

Theoretical work on disciplining corrupt agents has emphasized the role of expected future rents -- for example, efficiency wages. Yet taken seriously this approach implies that illicit future rents should also deter corruption. We study this "golden g...

Bank Bailouts, International Linkages, and Cooperation

By Friederike Niepmann and Tim Schmidt-Eisenlohr

American Economic Journal: Economic Policy, November 2013

Financial institutions are increasingly linked internationally. As a result, financial crises and government intervention have stronger effects beyond borders. We provide a model of international contagion allowing for bank bailouts. While a social pla...

The Economic and Policy Consequences of Catastrophes

By Robert S. Pindyck and Neng Wang

American Economic Journal: Economic Policy, November 2013

How likely is a catastrophic event that would substantially reduce the capital stock, GDP, and wealth? How much should society be willing to pay to reduce the probability or impact of a catastrophe? We answer these questions and provide a framework for...

Front Matter

American Economic Journal: Economic Policy, November 2013

A Century of US Central Banking: Goals, Frameworks, Accountability

[Symposium: The First 100 Years of the Federal Reserve]

By Ben S. Bernanke

Journal of Economic Perspectives, Fall 2013

Several key episodes in the 100-year history of the Federal Reserve have been referred to in various contexts with the adjective "Great" attached to them: the Great Experiment of the Federal Reserve's founding, the Great Depression, the Great Inflation ...

Central Bank Design

[Symposium: The First 100 Years of the Federal Reserve]

By Ricardo Reis

Journal of Economic Perspectives, Fall 2013

Starting with a blank slate, how could one design the institutions of a central bank for the United States? This paper explores the question of how to design a central bank, drawing on the relevant economic literature and historical experiences while st...

The Federal Reserve and Panic Prevention: The Roles of Financial Regulation and Lender of Last Resort

[Symposium: The First 100 Years of the Federal Reserve]

By Gary Gorton and Andrew Metrick

Journal of Economic Perspectives, Fall 2013

This paper surveys the role of the Federal Reserve within the financial regulatory system, with particular attention to the interaction of the Fed's role as both a supervisor and a lender-of-last-resort. The institutional design of the Federal Reserve S...

Shifts in US Federal Reserve Goals and Tactics for Monetary Policy: A Role for Penitence?

[Symposium: The First 100 Years of the Federal Reserve]

By Julio J. Rotemberg

Journal of Economic Perspectives, Fall 2013

This paper considers some of the large changes in the Federal Reserve's approach to monetary policy. It shows that, in some important cases, critics who were successful in arguing that past Fed approaches were responsible for mistakes that caused harm ...

Does the Federal Reserve Care about the Rest of the World?

[Symposium: The First 100 Years of the Federal Reserve]

By Barry Eichengreen

Journal of Economic Perspectives, Fall 2013

Many economists are accustomed to thinking about Federal Reserve policy in terms of the institution's "dual mandate," which refers to price stability and high employment, and in which the exchange rate and other international variables matter only insof...

An Interview with Paul Volcker

[Symposium: The First 100 Years of the Federal Reserve]

By Martin Feldstein

Journal of Economic Perspectives, Fall 2013

Martin Feldstein interviewed Paul Volcker in Cambridge, Massachusetts, on July 10, 2013, as part of a conference at the National Bureau of Economic Research on "The First 100 Years of the Federal Reserve: The Policy Record, Lessons Learned, and Prospect...