The Persistence of Inferior Cultural-Institutional Conventions

By Marianna Belloc and Samuel Bowles

American Economic Review, May 2013

Our theory of cultural-institutional persistence and innovation is based on uncoordinated updating of individual social norms and contracts, so that both culture and institutions co-evolve. We explain why Pareto-dominated cultural-institutional configurat...

Sooner or Later: Timing of Monetary Policy with Heterogeneous Risk-Taking

By Dong Beom Choi, Thomas M. Eisenbach, and Tanju Yorulmazer

American Economic Review, May 2016

We analyze the effects and interactions of monetary policy tools that differ in terms of their timing and their targeting. In a model with heterogeneous agents, more productive agents endogenously expose themselves to higher interim liquidity risk by borr...

Teaching Modern Macroeconomics at the Principles Level

By John B. Taylor

American Economic Review, May 2000

Racial Discrimination in the Sharing Economy: Evidence from a Field Experiment

By Benjamin Edelman, Michael Luca, and Dan Svirsky

American Economic Journal: Applied Economics, April 2017

In an experiment on Airbnb, we find that applications from guests with distinctively African American names are 16 percent less likely to be accepted relative to identical guests with distinctively white names. Discrimination occurs among landlords of all...

Real Exchange Rate Fluctuations and the Dynamics of Retail Trade Industries on the U. S.-Canada Border

By Jeffrey R. Campbell and Beverly Lapham

American Economic Review, September 2004

Independent Auditors' Report

American Economic Review, June 2004

Distortionary Taxes and the Provision of Public Goods

By Charles L. Ballard and Don Fullerton

Journal of Economic Perspectives, Summer 1992

Economists have long been concerned with finding an efficient level of public expenditure. The classic statement of the problem was given by Paul Samuelson (1954). An optimal level of expenditure is where the sum of the marginal rates of substitution betw...

Testing for the Disposition Effect on Optimal Stopping Decisions

By Jacopo Magnani

American Economic Review, May 2015

This paper develops a new laboratory test of the hypothesis that individual investors sell winners too early and ride losers too long. In the experiment, subjects invest in a risky asset, whose price evolves in near-continuous time, and they are provided ...

Isolated Capital Cities, Accountability, and Corruption: Evidence from US States

By Filipe R. Campante and Quoc-Anh Do

American Economic Review, August 2014

We show that isolated capital cities are robustly associated with greater levels of corruption across US states, in line with the view that this isolation reduces accountability. We then provide direct evidence that the spatial distribution of population ...

Deconstructing Income and Income Inequality Measures: A Crosswalk from Market Income to Comprehensive Income

By Philip Armour, Richard V. Burkhauser, and Jeff Larrimore

American Economic Review, May 2013

Recent research on levels and trends in the United States in income inequality vary substantially in how they measure income. We show the sensitivity of alternative income measures in capturing income trends using a unified data set. Focusing solely on ma...

Corruption, Trade Costs, and Gains from Tariff Liberalization: Evidence from Southern Africa

By Sandra Sequeira

American Economic Review, October 2016

This paper exploits quasi-experimental variation in tariffs in southern Africa to estimate trade elasticities. Traded quantities respond only weakly to a 30 percent reduction in the average nominal tariff rate. Trade flow data combined with primary data o...

A Century of Global Equity Market Correlations

By Dennis P. Quinn and Hans-Joachim Voth

American Economic Review, May 2008

Pay for Performance and Beyond

By Bengt Holmström

American Economic Review, July 2017

Incentives are often associated with narrow financial rewards such as bonuses or executive stock options. But in general such rewards are just a small part of the design of incentives. Properly designed incentive systems have to take into account the full...

The Drivers of Financial Globalization

By Philip R. Lane and Gian Maria Milesi-Ferretti

American Economic Review, May 2008

Minimum Wage Laws: Are They Overrated?

By Charles Brown

Journal of Economic Perspectives, Summer 1988

I think there is a reasonably high degree of agreement in studies of the impact of the minimum wage on employment, unemployment, and the distribution of income -- though I will also point to a few areas where further work could refine our understanding of...

Consumers' Perceptions and Misperceptions of Energy Costs

By Hunt Allcott

American Economic Review, May 2011

This paper presents three initial stylized facts from the Vehicle Ownership and Alternatives Survey (VOAS), a nationally representative survey that elicits consumers' beliefs about gasoline prices and the relative energy costs of autos with different fuel...

Consumer Bankruptcy: A Fresh Start

By Igor Livshits, James MacGee, and Michèle Tertilt

American Economic Review, March 2007

Consumer bankruptcy provides partial insurance against bad luck, but, by driving up interest rates, makes life-cycle smoothing more difficult. We argue that to assess this trade-off one needs a quantitative model of consumer bankruptcy with three key feat...

Participation

By Gary Charness and Martin Dufwenberg

American Economic Review, June 2011

We show experimentally that whether and how communication achieves beneficial social outcomes in a hidden-information context depends crucially on whether low-talent agents can participate in a Pareto-improving outcome. Communication is effective (and ...

Taxation and Corporate Payout Policy

By James Poterba

American Economic Review, May 2004

Trade and the Diffusion of the Industrial Revolution

By Robert E. Lucas

American Economic Journal: Macroeconomics, January 2009

This paper proposes a model to describe the evolution of real gross domestic product (GDP) in the world economy that is intended to apply to all open economies. The parameters of the model are calibrated using evidence from Sachs and Warner on economie...