Match!
The American Economic Review
IF
4.10
Papers
9889
Papers 9828
1 page of 983 pages (9,828 results)
Newest
This paper tests for downward nominal wage rigidity by examining transitory shifts in labor demand, generated by rainfall shocks, in 600 Indian districts from 1956-2009. Nominal wages rise in response to positive shocks but do not fall during droughts. In addition, transitory positive shocks generate ratcheting: after they have dissipated, nominal wages do not adjust back down. This ratcheting effect generates a 9% reduction in employment levels. Inflation enables downward real wage adjustments ...
We study the market for ratings agencies in the commercial mortgage backed securities sector leading up to and including the financial crisis of 2007–2008. Using a structural model adapted from the auctions literature, we characterize the incentives of ratings agencies to distort ratings in favor of issuers. We find an important equilibrium distortion, which decreased after the crisis. We study several counterfactual experiments motivated by recent policymaking in this industry.
#1Alexander P. Frankel (U of C: University of Chicago)H-Index: 4
#2Emir Kamenica (U of C: University of Chicago)H-Index: 15
#1Xavier Giroud (NBER: National Bureau of Economic Research)H-Index: 9
#2Holger M. Müller (NBER: National Bureau of Economic Research)H-Index: 21
This paper shows that firms spread the adverse impacts of local employment shocks across regions through their internal networks of establishments. Linking confidential micro data at the establishment level from the U.S. Census Bureau’s Longitudinal Business Database to ZIP code-level variation in house price changes during the Great Recession, we find that local establishment-level employment responds strongly to employment shocks in other regions in which the firm has establishments. Consisten...
#1Alejandro Martínez-Marquina (Stanford University)
#2Muriel Niederle (NBER: National Bureau of Economic Research)H-Index: 26
Last.Emanuel Vespa (UCSB: University of California, Santa Barbara)H-Index: 5
view all 0 authors...
We propose a new channel to account for the difficulties of individuals with contingent reasoning: the presence of uncertainty. When moving from an environment with one state of known value to one with multiple possible values, two changes occur. First, the number of values to consider increases. Second, the value of the state is uncertain. We show in an experiment that this lack of certainty, or the loss of the Power of Certainty, impedes payoff maximization and that it accounts for a substanti...
#1J. Aislinn Bohren (CMU: Carnegie Mellon University)H-Index: 5
#2Alex Imas (CMU: Carnegie Mellon University)H-Index: 8
Last.Michael RosenbergH-Index: 1
view all 3 authors...
We model the dynamics of discrimination and show how its evolution can identify the underlying cause. We test these theoretical predictions in a field experiment on a large online platform where users post content that is evaluated by other users on the platform. We assign posts to accounts that exogenously vary by gender and history of evaluations. With no prior evaluations, women face significant discrimination, while following a sequence of positive evaluations, the direction of discriminatio...
Subsidy programs have two countervailing effects on firms: direct gains for eligible firms and indirect losses for those whose competitors are eligible. In 2006, India changed the eligibility criteria for small-firm subsidies, and the sales of newly eligible firms grew by roughly 35 percent. Competitors of the newly eligible firms were affected, with almost complete crowd-out within products that were less internationally traded, but little crowd-out for more-traded products. The newly eligible ...
#1Guido Lorenzoni (NBER: National Bureau of Economic Research)H-Index: 20
#2Iván Werning (MIT: Massachusetts Institute of Technology)H-Index: 24
What circumstances or policies leave sovereign borrowers at the mercy of self-fulfilling increases in interest rates? To answer this question, we study the dynamics of debt and interest rates in a model where default is driven by insolvency. Fiscal deficits and surpluses are subject to shocks but influenced by a fiscal policy rule. Whenever possible the government issues debt to meet its current obligations and defaults otherwise. We show that low and high interest rate equilibria may coexist. H...
#1Keith Head (UBC: University of British Columbia)H-Index: 36
#2Thierry Mayer (Sciences Po)H-Index: 45
We use disaggregated data on car assembly and trade to estimate a model of multinational production. Our framework delineates four theory-based specifications under which all frictions relevant to multinational production can be structurally estimated. In addition to the trade costs and multinational production frictions emphasized in past work, we incorporate a third friction: regardless of production origin, it is more difficult to make sales in markets that are geographically separated from t...
12345678910