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Information and the Formation of Inflation Expectations by Firms: Evidence from a Survey of Israeli Firms

By Yuriy Gorodnichenko, Ari Kutai, and Rafi Melnick

American Economic Journal: Macroeconomics

We analyze how firms form their inflation expectations after a regime change in monetary policy and a transition to a low-inflation environment. Utilizing the Bank of Israel’s survey of firms, we document the basic properties of firms’ inflation expec...

Health Sector Structural Change

By Nick Pretnar and Maria Feldman

American Economic Journal: Macroeconomics

The U.S. health-services sector has grown both in terms of its expenditure share and relative price. Using a two-sector general equilibrium model with monopolistic competition and endogenous population, we find that relative price growth is almost enti...

Common Ownership and Market Entry: Evidence from the Pharmaceutical Industry

By Melissa Newham, Jo Seldeslachts, and Albert Banal-Estañol

American Economic Journal: Microeconomics, November 2025

Common ownership—where several firms are (partially) owned by the same investors—and its impact on product market competition has recently drawn much attention. This paper focuses on its implications for market entry. We consider the entry decisions o...

Holding Platforms Liable

By Xinyu Hua and Kathryn E. Spier

American Economic Journal: Microeconomics, November 2025

Should platforms be liable for harms suffered by users? A platform enables interactions between firms and users. Harmful firms impose larger costs on users than safe firms. If firms have deep pockets and are fully liable for harms, platform liability is u...