Accepted Papers

The Review of Economic Studies is one of the most highly respected academic journals in the field of economics. It is known for publishing leading research in all areas of economics, from microeconomics to macroeconomics. The journal is published by the Oxford University Press.

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Changes in Social Network Structure in Response to Exposure to Formal Credit Markets

Abhijit Banerjee, Emily Breza, Arun G. Chandrasekhar, Esther Duflo, Matthew O. Jackson, and Cynthia Kinnan

We show that the entry of formal financial institutions can have far-reaching and long-lasting impacts on informal lending and social networks more generally. We first study the introduction of microfinance in 75 villages in Karnataka, India, 43 of which were exposed to microfinance. Using difference-in-differences, we show that networks shrank more in exposed villages.

Is the Social Safety Net a Long-Term Investment? Large-Scale Evidence from the Food Stamps Program

Martha Bailey, Hilary Hoynes, Maya Rossin-Slater, and Reed Walker

We use novel, large-scale data on 17.5 million Americans to study how a policy-driven increase in economic resources affects children’s long-term outcomes. Using the 2000 Census and 2001-2013 American Community Survey linked to the Social Security Administration’s NUMIDENT, we leverage the county-level roll-out of the Food Stamps program between 1961 and 1975.

The Slaughter of the Bison and Reversal of Fortunes on the Great Plains

Donn. L. Feir, Rob Gillezeau, and Maggie E.C. Jones

In the late nineteenth century, the North American bison was brought to the brink of extinction in just over a decade. We demonstrate that the loss of the bison had immediate, negative consequences for the Native Americans who relied on them and ultimately resulted in a permanent reversal of fortunes. Once amongst the tallest people in the world, the generations of bison-reliant people born after the slaughter lost their entire height advantage.

The Effect of Wealth on Worker Productivity

Jan Eeckhout and Alireza Sepahsalari

We propose a theory that analyzes how a workers’ asset holdings affect their job productivity. In a labor market with uninsurable risk, workers choose to direct their job search trading off productivity and wages against unemployment risk. Workers with low asset holdings have a precautionary job search motive, they direct their search to low productivity jobs because those offer a low risk at the cost of low productivity and a low wage.

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Under Smooth Diagnostic Expectations overreaction increases smoothly with uncertainty, providing a micro-foundation for key properties of survey data and the business cycle.

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