AEA Financial Statements

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Annual Elections and Other Announcements

[News]

May 12, 2025

View the AEA Member Announcement from May 13, 2025.

Mental Accounts and Consumption Sensitivity across the Distribution of Liquid Assets

By James Graham and Robert A. McDowall

American Economic Journal: Macroeconomics

We study consumption spending responses to predictable income using household-level data from a U.S. financial institution. Even for households with large liquid asset balances, we find no spending in anticipation of income receipt, substantial spendin...

Mis-specified Forecasts and Myopia in an Estimated New Keynesian Model

By Ina Hajdini

American Economic Journal: Macroeconomics

I consider a New Keynesian framework where agents’ expectations are based on a combination of mis-specified forecasts and myopia. Such expectations are consistent with forecasters’ late over-shooting, under-reaction to forecast revisions, and over-rea...

The cultural roots of rebellion

[Research Highlight]

May 12, 2025

Eleonora Guarnieri discusses the role of cultural distance in driving civil conflict in Africa.

Cultural Distance and Ethnic Civil Conflict

By Eleonora Guarnieri

American Economic Review, April 2025

Ethnically diverse countries are more prone to conflict, but why do some groups engage in conflict, while others do not? I show that civil conflict in Africa is explained by ethnic groups' cultural distance to the central government: an increase in cultur...

The George Floyd Effect

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What happens to a community’s trust in law enforcement after high-profile acts of police violence?

Real-world Effectiveness of the Influenza Vaccine in Young Children

By Michael L. Anderson, Carlos Dobkin, Devon Gorry, and Hung-Fu Tseng

American Economic Journal: Applied Economics

Influenza causes substantial illness among children. RCTs demonstrate that the influenza vaccine reduces active-surveillance-detected influenza but have insufficient samples to examine healthcare provider visits. This study documents that two-to-five-year...

The Returns to Physical Capital in Knowledge Production: Evidence from Lab Disasters

By Stefano Baruffaldi and Fabian Gaessler

American Economic Journal: Applied Economics

We investigate the nature and relevance of physical capital in knowledge production. Exploiting adverse events in research laboratories, we find that scientists experience a persistent reduction in research output if they lose specialized physical capi...

Uncertainty and the Economy: The Evolving Distributions of Aggregate Supply and Demand Shocks

By Geert Bekaert, Eric Engstrom, and Andrey Ermolov

American Economic Journal: Macroeconomics

We estimate the time-varying distribution of aggregate supply (AS) and aggregate demand (AD) shocks. We distinguish between traditional Gaussian uncertainty and “bad” uncertainty, associated with negative skewness. The Great Moderation is driven by ...

Register Now for the Live Workshop Hosted by the Ombuds Team on Tuesday, May 20

[News]

May 15, 2025

View the AEA Member Announcement from May 16, 2025.

Policy on Revisions of Data and Code Deposits in the AEA Data and Code Repository

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Market entry as antidote to collusion

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How do cartels respond to new competition?

The Limits of Limited Commitment

By Jacopo Bizzotto, Toomas Hinnosaar, and Adrien Vigier

American Economic Journal: Microeconomics

We study limited strategic leadership. A collection of subsets covering the leader’s action space determines her commitment opportunities. We characterize the outcomes resulting from all possible commitment structures of this kind. If the commitment ...

Asymmetric Models of Sales

By David P. Myatt and David Ronayne

American Economic Journal: Microeconomics

We generalize the captive-and-shopper model of sales to allow for asymmetries in production costs and captive audiences in an oligopoly. Both kinds of asymmetry determine the firms that compete (using sales) to serve the shoppers. There are natural situat...

AEA Conference on Teaching and Research in Economic Education (CTREE)

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Trade, Value Added, and Productivity Linkages: A Quantitative Analysis

By François de Soyres and Alexandre Gaillard

American Economic Journal: Macroeconomics

Traditional international real business cycle models produce a weak relationship between trade and cross-country real GDP correlations, contradicting empirical findings. We reassess this quantitative puzzle in a many-country model featuring (i) global v...

Timothy Taylor, Distinguished Fellow 2025

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Rebuilding careers

[Research Highlight]

May 27, 2025

Higher education can help injured workers transition to higher-paying occupations.

Changing Tracks: Human Capital Investment after Loss of Ability

By Anders Humlum, Jakob R. Munch, and Pernille Plato

American Economic Review, May 2025

We provide the first evidence on how workers invest in human capital after losing ability. Using quasi-random work accidents in Danish administrative data, we find that workers enroll in bachelor's programs after physical injuries, pursuing degrees that b...