Page 37 – The Review of Economic Studies

International Spillovers and Bailouts

14 February 2023

Marina Azzimonti and Vincenzo Quadrini

We study how cross-country macroeconomic spillovers caused by sovereign default affect equilibrium bailouts.

Human Capital, Female Employment, and Electricity: Evidence from the Early 20th-Century United States

12 February 2023

Daniela Vidart

This paper revisits the link between electrification and the rise in female labor force participation (LFP), and presents theoretical and empirical evidence showing that electrification triggered a rise in female LFP by increasing market opportunities for skilled women.

The Cost of Wage Rigidity

12 February 2023

Ester Faia and Vincenzo Pezone

Private efficiency of wage rigidity has taken center stage in economics. Measuring its effects has proven elusive for lack of actual wage data.

Dynamic Asset-Backed Security Design

12 February 2023

Emre Ozdenoren, Kathy Yuan, and Shengxing Zhang

Borrowers obtain liquidity by issuing securities backed by the current period payoff and resale price of a long-lived collateral asset, and they are privately informed about the payoff distribution.

A Theory of Falling Growth and Rising Rents

9 February 2023

Philippe Aghion, Antonin Bergeaud, Timo Boppart, Peter J. Klenow, and Huiyu Li

Growth has fallen in the U.S. amid a rise in firm concentration. Market share has shifted to low labor share firms, while within-firm labor shares have actually risen.

Risk Classification in Insurance Markets with Risk and Preference Heterogeneity

9 February 2023

Vitor Farinha Luz, Piero Gottardi, and Humberto Moreira

This paper studies a competitive model of insurance markets in which consumers are privately informed about their risk and risk preferences. We provide a characterization of the equilibria, which depend non-trivially on consumers’ type distribution, a desirable feature for policy analysis.

Left-Digit Bias at Lyft

8 February 2023

John A. List, Ian Muir, Devin Pope, and Gregory Sun

Left-digit bias (or 99-cent pricing) has been discussed extensively in economics, psychology, and marketing. Despite this, we show that the rideshare company, Lyft, was not using a 99-cent pricing strategy prior to our study.

The Lost Capital Asset Pricing Model

8 February 2023

Daniel Andrei, Julien Cujean, and Mungo Wilson

We provide a novel explanation for the empirical failure of the CAPM despite its widespread practical use. In a rational-expectations economy in which information is dispersed, variation in expected returns over time and across investors creates an informational gap between investors and the empiricist.

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Chris Cronin's recent Review of Economic Studies (@RevEconStudies) article, "What Good Are Treatment Effects Without Treatment? Mental Health and the Reluctance to Use Talk Therapy," with Forsstrom and Papageorge, is one of their "featured" articles.

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Recently accepted to #REStud, "Overconfidence and Prejudice," from Heidhues, Kőszegi and Strack:

https://www.restud.com/overconfidence-and-prejudice/

#econtwitter

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"Can communities sustain cooperation when players can add or erase signals from their records?
Sufficiently long-lived players can hardly sustain any cooperation, but players w/ intermediate lifespans can sustain some cooperation."

From @harry_toulouse:

https://www.restud.com/community-enforcement-with-endogenous-records/