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Investing in the Next Generation: The Long-Run Impacts of a Liquidity Shock

By Patrick Agte, Arielle Bernhardt, Erica Field, Rohini Pande, and Natalia Rigol

American Economic Review, September 2024

Poor entrepreneurs must frequently choose between business investment and children's education. To examine this trade-off, we exploit experimental variation in short-run microenterprise growth among a sample of Indian households and track schooling and bu...

In-Kind Transfers as Insurance

By Lucie Gadenne, Samuel Norris, Monica Singhal, and Sandip Sukhtankar

American Economic Review, September 2024

Households in developing countries often face variation in the prices of consumption goods. We develop a model demonstrating that in-kind transfers will provide insurance benefits against price risk if the covariance between the marginal utility of income...

Spending and Job-Finding Impacts of Expanded Unemployment Benefits: Evidence from Administrative Micro Data

By Peter Ganong, Fiona Greig, Pascal Noel, Daniel M. Sullivan, and Joseph Vavra

American Economic Review, September 2024

We show that the largest increase in unemployment benefits in US history had large spending impacts and small job-finding impacts. This finding has three implications. First, increased benefits were important for explaining aggregate spending dynamics—b...

Experimentation in Networks

By Simon Board and Moritz Meyer-ter-Vehn

American Economic Review, September 2024

We propose a model of strategic experimentation on social networks in which forward-looking agents learn from their own and neighbors' successes. In equilibrium, private discovery is followed by social diffusion. Social learning crowds out own experimenta...

Comparisons of Signals

By Benjamin Brooks, Alexander Frankel, and Emir Kamenica

American Economic Review, September 2024

A signal is a description of an information source that specifies both its correlation with the state and its correlation with other signals. Extending Blackwell (1953), we characterize when one signal is more valuable than another regardless of preferenc...

Zooming to Class? Experimental Evidence on College Students' Online Learning during COVID-19

By Michael S. Kofoed, Lucas Gebhart, Dallas Gilmore, and Ryan Moschitto

American Economic Review: Insights, September 2024

One persistent question in higher education is the efficacy of online education. In the fall of 2020, we randomized 551 West Point students in a required introductory economics course across 12 instructors to either an online or in-person class as a respo...

Nonrepresentativeness in Population Health Research: Evidence from a COVID-19 Antibody Study

By Deniz Dutz, Michael Greenstone, Ali Hortaçsu, Santiago Lacouture, Magne Mogstad, Azeem M. Shaikh, Alexander Torgovitsky, and Winnie van Dijk

American Economic Review: Insights, September 2024

We analyze representativeness in a COVID-19 serological study with randomized participation incentives. We find large participation gaps by race and income when incentives are lower. High incentives increase participation rates for all groups but increase...

The Socioeconomic Distribution of Choice Quality: Evidence from Health Insurance in the Netherlands

By Benjamin Handel, Jonathan Kolstad, Thomas Minten, and Johannes Spinnewijn

American Economic Review: Insights, September 2024

We study how choice quality relates to socioeconomic factors, using population-wide data on health insurance choices and utilization in the Netherlands. We document a striking choice quality gradient with respect to socioeconomic status, finding that thos...

Regulating Transformative Technologies

By Daron Acemoglu and Todd Lensman

American Economic Review: Insights, September 2024

Transformative technologies like generative AI promise to accelerate productivity growth across many sectors, but they also present new risks from potential misuse. We develop a multisector technology adoption model to study the optimal regulation of tran...

Dynamic Spending Responses to Wealth Shocks: Evidence from Quasi Lotteries on the Stock Market

By Asger Lau Andersen, Niels Johannesen, and Adam Sheridan

American Economic Review: Insights, September 2024

How much and over what horizon do households adjust their consumption in response to stock market wealth shocks? We address these questions using granular data on spending and stock portfolios from a large bank and exploiting lottery-like variation in gai...

Repression and Repertoires

By Stephen Morris and Mehdi Shadmehr

American Economic Review: Insights, September 2024

We formalize Tilly's concept of repertoires of collective action and analyze how state repression affects the variety of observed contentious actions. When repression accelerates with higher levels of antiregime actions (convex repression structure), oppo...