Cross-Country Differences in Intergenerational Earnings Mobility

[Symposium: Intergenerational Mobility]

By Gary Solon

Journal of Economic Perspectives, Summer 2002

International studies of the extent to which economic status is passed from one generation to the next are important for at least two reasons. First, each study of a particular country characterizes an important feature of that country's income inequality...

Political Parties and Labor-Market Outcomes: Evidence from US States

By Louis-Philippe Beland

American Economic Journal: Applied Economics, October 2015

This paper estimates the causal impact of the party allegiance (Republican or Democratic) of US governors on labor-market outcomes. I match gubernatorial elections with March Current Population Survey (CPS) data for income years 1977 to 2008. Using a regr...

Natural Gas: From Shortages to Abundance in the United States

By Paul L. Joskow

American Economic Review, May 2013

The history of natural gas wellhead and pipeline regulation, deregulation and regulatory reforms are discussed. These reforms brought natural gas shortages and pipeline inefficiencies to an end. They also created an economic platform that could support un...

Empathy or Antipathy? The Impact of Diversity

By Johanne Boisjoly, Greg J. Duncan, Michael Kremer, Dan M. Levy, and Jacque Eccles

American Economic Review, December 2006

Mixing across racial and ethnic lines could spur understanding or inflame tensions between groups. We find that white students at a large state university randomly assigned African American roommates in their first year were more likely to endorse affirma...

Relative Goods' Prices, Pure Inflation, and the Phillips Correlation

By Ricardo Reis and Mark W. Watson

American Economic Journal: Macroeconomics, July 2010

This paper uses a dynamic factor model for the quarterly changes in consumption goods' prices in the United States since 1959 to separate them into three independent components: idiosyncratic relative-price changes, a low-dimensional index of aggregate re...

Does the Market Value CEO Styles?

By Antoinette Schoar and Luo Zuo

American Economic Review, May 2016

We study how investors perceive the skill set that different types of CEOs bring into their companies. We compare CEOs who started their careers during a recession with other CEOs. We show that the announcement return around the appointment of a recession...

ABCs (and Ds) of Understanding VARs

By Jesús Fernández-Villaverde, Juan F. Rubio-Ramírez, Thomas J. Sargent, and Mark W. Watson

American Economic Review, June 2007

The dynamics of a linear (or linearized) dynamic stochastic economic model can be expressed in terms of matrices (A, B, C, D) that define a state space system for a vector of observables. An associated state space system (A,ˆB,C,ˆD) determines a vector ...

The Importance of Being Marginal: Gender Differences in Generosity

By Stefano DellaVigna, John A. List, Ulrike Malmendier, and Gautam Rao

American Economic Review, May 2013

Do men and women have different social preferences? Previous findings are contradictory. We provide a potential explanation using evidence from a field experiment. In a door-to-door solicitation, men and women are equally generous, but women become less g...

Issuer Credit Quality and the Price of Asset Backed Securities

By Oliver Faltin-Traeger, Kathleen W. Johnson, and Christopher Mayer

American Economic Review, May 2010

Estimates of Annual Consumption Expenditures and Its Major Components in the PSID in Comparison to the CE

By Patricia Andreski, Geng Li, Mehmet Zahid Samancioglu, and Robert Schoeni

American Economic Review, May 2014

Comprehensive data on consumption expenditures have historically not been collected in US longitudinal household surveys. The Panel Study of Income Dynamics (PSID) expanded its expenditure data collection in 1999 and 2005. We examine these new expenditur...

Pricing and Welfare in Health Plan Choice

By M. Kate Bundorf, Jonathan Levin, and Neale Mahoney

American Economic Review, December 2012

Premiums in health insurance markets frequently do not reflect individual differences in costs, either because consumers have private information or because prices are not risk rated. This creates inefficiencies when consumers self-select into plans. We ...

How Demanding Is the Revealed Preference Approach to Demand?

By Timothy K. M. Beatty and Ian A. Crawford

American Economic Review, October 2011

A well-known problem with revealed preference methods is that when data are found to satisfy their restrictions it is hard to know whether this should be viewed as a triumph for economic theory, or a warning that these conditions are so undemanding that a...

Legislative Bargaining under Weighted Voting

By James M. Snyder Jr., Michael M. Ting, and Stephen Ansolabehere

American Economic Review, September 2005

Organizations often distribute resources through weighted voting. We analyze this setting using a noncooperative bargaining game based on the Baron-Ferejohn (1989) model. Unlike analyses derived from cooperative game theory, we find that each voter's expe...

About Capital in the Twenty-First Century

By Thomas Piketty

American Economic Review, May 2015

In this article, I present three key facts about income and wealth inequality in the long run emerging from my book, Capital in the Twenty-First Century, and seek to sharpen and refocus the discussion about those trends. In particular, I clarify ...

The Long-Run Effect of Mexican Immigration on Crime in US Cities: Evidence from Variation in Mexican Fertility Rates

By Aaron Chalfin

American Economic Review, May 2015

Using historical data on the size of state-specific Mexican birth cohorts and geographic migration networks between Mexican states and US metropolitan areas, I construct an instrumental variable that predicts decadal migration from Mexico to the United St...

Inflation-Targeting, Exchange-Rate Pass-Through, and Volatility

By Maurice Obstfeld

American Economic Review, May 2002

Did the Elimination of Mandatory Retirement Affect Faculty Retirement?

By Orley Ashenfelter and David Card

American Economic Review, September 2002

A special exemption from the 1986 Age Discrimination Act allowed colleges and universities to enforce mandatory retirement of faculty at age 70 until 1994. We construct a survey that permits us to compare faculty turnover rates before and after the law ch...

Trade, Labor Market Frictions, and Residual Wage Inequality across Worker Groups

By Pravin Krishna, Jennifer P. Poole, and Mine Zeynep Senses

American Economic Review, May 2012

Using a matched employer-employee data set, we study the effects of trade liberalization on wage dispersion in Brazil across heterogeneous worker groups, keeping in mind that the assignment of workers to firms may be non-random and determined by the time-...

Field Centipedes

By Ignacio Palacios-Huerta and Oscar Volij

American Economic Review, September 2009

In the centipede game, all standard equilibrium concepts dictate that the player who decides first must stop the game immediately. There is vast experimental evidence, however, that this rarely occurs. We first conduct a field experiment in which highly r...

Interpreting Aggregate Wage Growth: The Role of Labor Market Participation

By Richard Blundell, Howard Reed, and Thomas M. Stoker

American Economic Review, September 2003

A new and easily implementable framework for the empirical analysis of the relationship between aggregate and individual wages is developed. Aggregate real wages are shown to contain three important bias terms: one associated with the dispersion of indivi...