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Test-Optional Admissions

By Wouter Dessein, Alex Frankel, and Navin Kartik

òòò½Íø Review, September 2025

Many US colleges now use test-optional admissions. A frequent claim is that by not seeing standardized test scores, a college can admit a student body it prefers, say, with more diversity. But how can observing less information improve decisions? This pap...

Market-Wide Predictable Price Pressure

By Samuel M. Hartzmark and David H. Solomon

òòò½Íø Review, September 2025

We demonstrate that predictable uninformed cash flows forecast aggregate market stock returns. Buying pressure from dividend payments (announced weeks prior) predicts higher value-weighted market returns, with returns for the top quintile of payment days ...

Micro versus Macro Labor Supply Elasticities: The Role of Dynamic Returns to Effort

By Henrik Kleven, Claus Kreiner, Kristian Larsen, and Jakob ³§Ã¸²µ²¹²¹°ù»å

òòò½Íø Review, September 2025

We investigate long-run earnings responses to taxes in the presence of dynamic returns to effort. First, we develop a theoretical model of earnings determination with dynamic returns to effort. In this model, earnings responses are delayed and mediated by...

The Economics of Attention

By George Loewenstein and Zachary Wojtowicz

Journal of Economic Literature, September 2025

Attention is an important resource in the modern economy and plays an increasingly prominent role in economic analysis. We summarize research on attention from both psychology and economics with a particular emphasis on its capacity to explain documented ...

Housing and Inequality

By Yannis M. Ioannides and L. Rachel Ngai

Journal of Economic Literature, September 2025

We approach the literature on housing and inequality from two angles. One is the impact of unequal endowments on housing. The second is the "memberships" inequality associated with neighborhoods, namely, households' location in a geographic and social con...