A Theory of Demand Shocks

By Guido Lorenzoni

American Economic Review, December 2009

This paper presents a model of business cycles driven by shocks to consumer expectations regarding aggregate productivity. Agents are hit by heterogeneous productivity shocks, they observe their own productivity and a noisy public signal regarding aggr...

VAR Analysis and the Great Moderation

By Luca Benati and Paolo Surico

American Economic Review, September 2009

Most analyses of the US Great Moderation are based on structural VARs, and point toward good luck as the main explanation for the recent macroeconomic stability. Based on an estimated New-Keynesian model where the only source of change is the move from pa...

Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments: Comment

By Ernst Fehr, Michael Naef, and Klaus M. Schmidt

American Economic Review, December 2006

Do Private Equity Owned Firms Have Better Management Practices?

By Nicholas Bloom, Raffaella Sadun, and John Van Reenen

American Economic Review, May 2015

Using an innovative survey measure of management practices on over 15,000 firms, we find private equity firms are better managed than government, family, and privately owned firms, and have similar management to publicly listed firms. This is true both in...

Aggregate Demand and the Top 1 Percent

By Adrien Auclert and Matthew Rognlie

American Economic Review, May 2017

There has been a large rise in US top income inequality since the 1980s. We merge a widely studied model of the Pareto tail of labor incomes with a canonical model of consumption and savings to study the consequences of this increase for aggregate demand....

Consensus Building: How to Persuade a Group

By Bernard Caillaud and Jean Tirole

American Economic Review, December 2007

The paper explores strategies that the sponsor of a proposal may employ to convince a qualified majority of members in a group to approve the proposal. Adopting a mechanism design approach to communication, it emphasizes the need to distill information...

Tax Reform Unraveling

[Symposium: U.S. Tax Policy in International Perspective]

By Michael J. Graetz

Journal of Economic Perspectives, Winter 2007

The Tax Reform Act of 1986 was widely heralded as the most significant change in our nation's tax law since the income tax was extended to the masses during World War II. It was the crowning domestic policy achievement of President Ronald Reagan, who proc...

Report: Committee on the Status of Minority Groups in the Economics Profession (CSMGEP)

By Cecilia Rouse and Gary Hoover

American Economic Review, May 2016

Confidence Risk and Asset Prices

By Ravi Bansal and Ivan Shaliastovich

American Economic Review, May 2010

Deposit Insurance Around the Globe: Where Does It Work?

By Asli Demirgüç-Kunt and Edward J. Kane

Journal of Economic Perspectives, Spring 2002

Explicit deposit insurance has been spreading rapidly in recent years, even to countries with low levels of financial and institutional development. This paper documents the extent of cross-country differences in deposit insurance design and reviews empir...

Child Labor and the Labor Supply of Other Household Members: Evidence from 1920 America

By Marco Manacorda

American Economic Review, December 2006

This paper exploits the variation in the legal minimum working age across states in 1920 America in order to identify households' labor supply responses to exogenous changes in children's labor force participation. Using micro data on urban households fro...

The Cross Section of Foreign Currency Risk Premia and Consumption Growth Risk: Comment

By Craig Burnside

American Economic Review, December 2011

Lustig and Verdelhan (2007) argue that the excess returns to borrowing US dollars and lending in foreign currency "compensate US investors for taking on more US consumption growth risk," yet the stochastic discount factor corresponding to their benchmark ...

How Special Is the Special Relationship? Using the Impact of U.S. R&D Spillovers on U.K. Firms as a Test of Technology Sourcing

By Rachel Griffith, Rupert Harrison, and John Van Reenen

American Economic Review, December 2006

We examine the "technology sourcing" hypothesis that foreign research labs located in the U.S. tap into U.S. R&D spillovers and improve home country productivity. We show that U.K. firms that established a high proportion of inventors based in the U.S. by...

Can Tax Rebates Stimulate Consumption Spending in a Life-Cycle Model?

By Jonathan Huntley and Valentina Michelangeli

American Economic Journal: Macroeconomics, January 2014

We build a life-cycle model with earnings risk, liquidity constraints, and portfolio choice over tax-deferred and taxable assets to evaluate how household consumption changes in response to shocks to transitory anticipated income, such as the 2001 inco...

Annotated Listing of New Books

Journal of Economic Literature, December 2015

Policy Gambles

By Sumon Majumdar and Sharun W. Mukand

American Economic Review, September 2004

The New Institutional Economics: Taking Stock, Looking Ahead

By Oliver E. Williamson

Journal of Economic Literature, September 2000

This paper examines the progressive development of the new institutional economics over the past quarter century. It begins by distinguishing four levels of social analysis, with special emphasis on the institutional environment and the institutions of go...

Wage Posting and Business Cycles

By Giuseppe Moscarini and Fabien Postel-Vinay

American Economic Review, May 2016

The canonical model of job search and wage posting (Burdett and Mortensen, 1998) establishes a natural connection between the average wage growth in the economy and the pace of Employer-to-Employer (EE) transitions, predicting wage growth to be positively...

Plants and Imported Inputs: New Facts and an Interpretation

By Maurice Kugler and Eric Verhoogen

American Economic Review, May 2009

JEL Classification System

Journal of Economic Literature, September 2002