Home Sweet Home: Returns to Returning in the Age of Mass Migration

By Olof Ejermo, Kerstin Enflo, Björn Eriksson, and Erik Prawitz

American Economic Journal: Applied Economics, October 2025

Despite significant circular migration flows historically and today, their economic impacts remain understudied. Using data on predominantly rural Swedish migrants who returned from the United States during the Age of Mass Migration, we estimate returns t...

Labor Supply and Entertainment Innovations: Evidence from the US TV Rollout

By George Fenton and Felix Koenig

American Economic Journal: Applied Economics, October 2025

We study the impact of entertainment technology on labor supply. Using Social Security work histories and a natural experiment arising from the regulated US rollout of television, we estimate that a station launch reduced the probability of working by aro...

Down to the Wire: Leveraging Technology to Improve Electric Utility Cost Recovery

By Husnain F. Ahmad, Ayesha Ali, Robyn C. Meeks, Zhenxuan Wang, and Javed Younas

American Economic Journal: Applied Economics, October 2025

We study the effects of a technical intervention in Karachi, Pakistan—converting bare distribution wires to aerial bundled cables (ABCs)—that was intended to prevent illegal grid connections and improve utility cost recovery. Theft-resistant cables re...

The Franchise, Policing, and Race: Evidence from Arrests Data and the Voting Rights Act

By Giovanni Facchini, Brian Knight, and Cecilia Testa

American Economic Journal: Applied Economics, October 2025

This paper investigates the relationship between the franchise and policing. We find that, following the Voting Rights Act of 1965, Black arrest rates in counties that both had more newly enfranchised Blacks and were covered by the legislation fell, compa...

Where Do My Tax Dollars Go? Tax Morale Effects of Perceived Government Spending

By Matias Giaccobasso, Brad Nathan, Ricardo Perez-Truglia, and Alejandro Zentner

American Economic Journal: Applied Economics, October 2025

Do perceptions about government spending affect willingness to pay taxes? We test this hypothesis with a natural field experiment that focuses on the allocation of property taxes to public schools. Our results show that taxpayers often misperceive the des...

Human Capital and Racial Inequality in the US Labor Market

By Owen Thompson

Journal of Economic Literature

If racial gaps in measures of human capital like educational attainment and standardized test scores were eliminated, what would happen to racial disparities in wages, employment, and other labor market outcomes? A credible answer to this question is foun...

Front Matter

American Economic Journal: Macroeconomics, October 2025

The Dynamics of Development: Innovation and Reallocation

By Francisco J. Buera and Roberto N. Fattal-Jaef

American Economic Journal: Macroeconomics, October 2025

This paper proposes a quantitative model of endogenous firm dynamics to study growth-acceleration episodes triggered by reforms. We find that reversals of entry distortions lead to persistent growth in TFP and declining average firm size, as in the experi...

The Consumption Origins of Business Cycles: Lessons from Sectoral Dynamics

By Christian Matthes and Felipe Schwartzman

American Economic Journal: Macroeconomics, October 2025

We measure the impact of household consumption shocks on aggregate fluctuations. These shocks affect household consumption directly, and production and prices indirectly through their impact on aggregate consumption. We show how to identify such shocks us...

GDP-B: Accounting for the Value of New and Free Goods

By Erik Brynjolfsson, Avinash Collis, W. Erwin Diewert, Felix Eggers, and Kevin J. Fox

American Economic Journal: Macroeconomics, October 2025

The welfare contributions of new goods and free goods are not well-measured in standard statistical agency metrics like GDP or productivity. We derive explicit terms for the contributions of these goods and introduce a new framework and metric, GDP-B, whi...

Real Exchange Rates and Endogenous Productivity

By Nils Gornemann, Pablo A. Guerrón Quintana, and Felipe Saffie

American Economic Journal: Macroeconomics, October 2025

Two-thirds of the real exchange rate's (RER's) volatility occurs at low frequencies. We provide empirical evidence that links movements in the RER to changes in research and development spending and patents. A two-country real business cycle model with en...

Time to Say Goodbye: The Macroeconomic Implications of Termination Notice

By Tomer Ifergane

American Economic Journal: Macroeconomics, October 2025

Insuring households against unemployment risk is a cornerstone of modern economic policy. Many countries provide unemployment insurance partly by employment protection mandates, most commonly using termination notice mandates. Unlike unemployment insuranc...

Cyclical Attention to Saving

By Alistair Macaulay

American Economic Journal: Macroeconomics, October 2025

I explore the business-cycle implications of household inattention to savings product choices. In a model with heterogeneous banks, savers pay more attention to their bank choice when the marginal utility of income is high. Consistent with this, in data f...

Market Segmentation and International Bond Prices: The Role of ECB Asset Purchases

By Ester Faia, Juliana Salomao, and Alexia Ventula Veghazy

American Economic Journal: Macroeconomics, October 2025

We estimate euro-dollar yields differences, hedged and unhedged, with euro area confidential corporate bond holdings data. We find that euro yields significantly decline relative to dollar yields—more for securities in the portfolios of investors that p...

Temporary Layoffs, Firm Entry and Exit Dynamics, and Aggregate Fluctuations

By Sanjay K. Chugh and Alan Finkelstein Shapiro

American Economic Journal: Macroeconomics, October 2025

We build a model to study how the countercyclicality of temporary layoffs affects unemployment, firm entry and exit, and macroeconomic fluctuations. The model can quantitatively generate the rich cyclical dynamics of temporary layoffs, unemployment, and f...

AEA Meeting Minutes

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Bias in academic networking

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A social media field experiment suggests that gender, race, and university affiliation influence the formation of professional relationships among economists.

Front Matter

American Economic Review, October 2025

Intermediated Asymmetric Information, Compensation, and Career Prospects

By Ron Kaniel and Dmitry Orlov

American Economic Review, October 2025

Adverse selection benefits firms able to identify talent. An informed intermediary expropriates agents' ability by threatening to fire and expose them to undervaluation of their skill. An agent's track record gradually reduces intermediary's information a...

Place-Based Redistribution

By Cecile Gaubert, Patrick Kline, Damian Vergara, and Danny Yagan

American Economic Review, October 2025

We study optimal income taxation in a spatial equilibrium model with heterogeneous locational preferences, labor supply decisions, and competitive housing and labor markets. Expressions characterizing the optimal tax schedule in each community are provide...