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Selection in Insurance Markets: Theory and Empirics in Pictures

By Liran Einav and Amy Finkelstein

Journal of Economic Perspectives, Winter 2011

Government intervention in insurance markets is ubiquitous and the theoretical basis for such intervention, based on classic work from the 1970s, has been the problem of adverse selection. Over the last decade, empirical work on selection in insurance mar...

A Time-Series Analysis of Crime, Deterrence, and Drug Abuse in New York City

By Hope Corman and H. Naci Mocan

蝌蚪网 Review, June 2000

From Peer Pressure to Biased Norms

By Moti Michaeli and Daniel Spiro

蝌蚪网 Journal: Microeconomics, February 2017

This paper studies a coordination game between a continuum of players with heterogeneous tastes who perceive peer pressure when behaving differently from each other. It characterizes the conditions under which a social norm鈥攁 mode of behavior followed b...

The Stock Market and Capital Accumulation

By Robert E. Hall

蝌蚪网 Review, December 2001

The value of a firm's securities measures the value of the firm's productive assets. If the assets include only capital goods and not a permanent monopoly franchise, the value of the securities measures the value of the capital. Finally, if the price of t...

Will the Sovereign Debt Market Survive?

By Andrei Shleifer

蝌蚪网 Review, May 2003

Parental Job Loss and Children's Long-Term Outcomes: Evidence from 7 Million Fathers' Layoffs

By Nathaniel G. Hilger

蝌蚪网 Journal: Applied Economics, July 2016

How do parental layoffs and their large attendant income losses affect children's long-term outcomes? This question has proven difficult to answer due to the endogeneity of parental layoffs. I overcome this problem by exploiting the timing of 7 million fa...

Managing Conflicts in Relational Contracts

By Jin Li and Niko Matouschek

蝌蚪网 Review, October 2013

A manager and a worker are in an infinitely repeated relationship in which the manager privately observes her opportunity costs of paying the worker. We show that the optimal relational contract generates periodic conflicts during which effort and expe...

Identity Economics 2016: Where Do Social Distinctions and Norms Come From?

By Rachel E. Kranton

蝌蚪网 Review, May 2016

Identity economics provides a framework to analyze economic outcomes by establishing people's identities鈥攏ot just pecuniary incentives鈥攁s primary motivations for choice. The heart of the framework is social difference and norms. This paper engages the...

Entropy and the Value of Information for Investors

By Antonio Cabrales, Olivier Gossner, and Roberto Serrano

蝌蚪网 Review, February 2013

Consider an investor who fears ruin when facing investments that satisfy no-arbitrage. Before investing he can purchase information about the state of nature as an information structure. Given his prior, information structure α investment dominat...

Self-Fulfilling Risk Panics

By Philippe Bacchetta, 颁茅诲谤颈肠 Tille, and Eric van Wincoop

蝌蚪网 Review, December 2012

Recent crises have seen large spikes in asset price risk. We propose an explanation for such panics based on self-fulfilling shifts in beliefs about risk. A negative link between the current level and the future risk of an asset price leads to a circular ...

Grade Information and Grade Inflation: The Cornell Experiment

[Symposium: Grade Differences and Inflation]

By Talia Bar, Vrinda Kadiyali, and Asaf Zussman

Journal of Economic Perspectives, Summer 2009

Grade inflation and high grade levels have been subjects of concern and public debate in recent decades. In the mid-1990s, Cornell University's Faculty Senate had a number of discussions about grade inflation and what might be done about it. In April 1996...

The War on Drugs: Methamphetamine, Public Health, and Crime

By Carlos Dobkin and Nancy Nicosia

蝌蚪网 Review, March 2009

In mid-1995, a government effort to reduce the supply of methamphetamine precursors successfully disrupted the methamphetamine market and interrupted a trajectory of increasing usage. The price of methamphetamine tripled and purity declined from 90 per...

Do Wealth Fluctuations Generate Time-Varying Risk Aversion? Micro-evidence on Individuals

By Markus K. Brunnermeier and Stefan Nagel

蝌蚪网 Review, June 2008

We use data from the Panel Study of Income Dynamics to investigate how households portfolio allocations change in response to wealth fluctuations. Persistent habits, consumption commitments, and subsistence levels can generate time-varying risk aversio...

A Sociological Perspective on Gender and Career Outcomes

[Symposium: Sociology and Economics]

By Barbara F. Reskin and Denise D. Bielby

Journal of Economic Perspectives, Winter 2005

Powering Up China: Income Distributions and Residential Electricity Consumption

By Maximilian Auffhammer and Catherine D. Wolfram

蝌蚪网 Review, May 2014

Current forecasts suggest that the vast majority of growth in energy demand will come from the developing world, and that China will play a major part in that growth. This paper presents evidence suggesting that the shape of the income distribution, which...

Incentive Schemes, Sorting, and Behavioral Biases of Employees: Experimental Evidence

By Ian Larkin and Stephen Leider

蝌蚪网 Journal: Microeconomics, May 2012

We investigate how the convexity of a firm's incentives interacts with worker overconfidence to affect sorting decisions and performance. We demonstrate, experimentally, that overconfident employees are more likely to sort into a nonlinear incentive schem...

A Quantitative Analysis of the Used-Car Market

By Alessandro Gavazza, Alessandro Lizzeri, and Nikita Roketskiy

蝌蚪网 Review, November 2014

We quantitatively investigate the allocative and welfare effects of secondary markets for cars. An important source of gains from trade in these markets is the heterogeneity in the willingness to pay for higher-quality (newer) goods, but transaction co...

The Value of Postsecondary Credentials in the Labor Market: An Experimental Study

By David J. Deming, Noam Yuchtman, Amira Abulafi, Claudia Goldin, and Lawrence F. Katz

蝌蚪网 Review, March 2016

We study employers' perceptions of the value of postsecondary degrees using a field experiment. We randomly assign the sector and selectivity of institutions to fictitious resumes and apply to real vacancy postings for business and health jobs on a lar...

Medium-Term Business Cycles

By Diego Comin and Mark Gertler

蝌蚪网 Review, June 2006

Over the postwar period, many industrialized countries have experienced significant medium-frequency oscillations between periods of robust growth versus relative stagnation. Conventional business cycle filters, however, tend to sweep these oscillations...

The Limits of Trade Policy Reform in Developing Countries

[Symposium: Trade Liberalization and Development]

By Dani Rodrik

Journal of Economic Perspectives, Winter 1992

Trade reform is now raising some new issues. This paper deals with three sets of questions: First, how can trade reform be sustained? Can governments convince business, labor, or consumers that trade reform will be lasting, so as to forestall possible adv...