Editors' Introduction

William R. Johnson and Jane E. Voros

(p. viii)

Foreword

Avinash K. Dixit

(p. x)

Articles: Richard T. Ely Lecture

The Economics of Climate Change

Nicholas Stern

(pp. 1-37)

Articles: The Impact of Hurricanes on Residents and Local Labor Markets

Returning to New Orleans after Hurricane Katrina

Christina Paxson and Cecilia Elena Rouse

(pp. 38-42)

The Effect of Hurricane Katrina on the Labor Market Outcomes of Evacuees

Jeffrey A. Groen and Anne E. Polivka

(pp. 43-48)

How Hurricanes Affect Wages and Employment in Local Labor Markets

Ariel R. Belasen and Solomon W. Polachek

(pp. 49-53)

Measuring the Labor Market Impacts of Hurricane Katrina Migration: Evidence from Houston, Texas

Molly Fifer McIntosh

(pp. 54-57)

Articles: Rare Disasters and Asset Markets

Consumption Disasters in the Twentieth Century

Robert J. Barro and Jose F. Ursua

(pp. 58-63)

Variable Rare Disasters: A Tractable Theory of Ten Puzzles in Macro-finance

Xavier Gabaix

(pp. 64-67)

Disasters and Recoveries

Francois Gourio

(pp. 68-73)

Disasters and the Welfare Cost of Uncertainty

Ian W. R. Martin

(pp. 74-78)

Articles: US Fiscal Institutions: Reforming Tax Expenditures

How Big Are Total Individual Income Tax Expenditures, and Who Benefits from Them?

Leonard E. Burman, Christopher Geissler and Eric J. Toder

(pp. 79-83)

Tax Expenditures for Owner-Occupied Housing: Deductions for Property Taxes and Mortgage Interest and the Exclusion of Imputed Rental Income

James Poterba and Todd Sinai

(pp. 84-89)

Using Tax Expenditures to Achieve Energy Policy Goals

Gilbert E. Metcalf

(pp. 90-94)

Articles: Design and Reform of Institutions in LDCs and Transition Economies

Institutions: Top Down or Bottom Up?

William Easterly

(pp. 95-99)

Second-Best Institutions

Dani Rodrik

(pp. 100-104)

The Administrative Foundations of Self-Enforcing Constitutions

Yadira Gonzalez de Lara, Avner Greif and Saumitra Jha

(pp. 105-09)

Articles: Current and Future Institutions for the World Economy

The Future of the IMF and the World Bank

Raghuram G. Rajan

(pp. 110-15)

Rethinking Global Environmental Governance to Deal with Climate Change: The Multiple Logics of Global Collective Action

Daniel C. Esty

(pp. 116-21)

Designing Institutions to Deal with Terrorism in the United States

Martin Feldstein

(pp. 122-26)

Articles: Reforming Economic Institutions of the European Union

EU Institutional Reform: Evidence on Globalization and International Cooperation

Richard Baldwin

(pp. 127-32)

Widening and Deepening: Reforming the European Union

Erik Berglof, Mike Burkart, Guido Friebel and Elena Paltseva

(pp. 133-37)

Should the Euro Area Be Run as a Closed Economy?

Carlo Favero and Francesco Giavazzi

(pp. 138-45)

Articles: Empirical Work on Asymmetric Information in Insurance Markets

Modeling Competition and Market Equilibrium in Insurance: Empirical Issues

Pierre-Andre Chiappori and Bernard Salanie

(pp. 146-50)

Does the Secondary Life Insurance Market Threaten Dynamic Insurance?

Glenn Daily, Igal Hendel and Alessandro Lizzeri

(pp. 151-56)

Preference Heterogeneity and Insurance Markets: Explaining a Puzzle of Insurance

David M. Cutler, Amy Finkelstein and Kathleen McGarry

(pp. 157-62)

Articles: Neuroeconomic Models of Economic Decision Making

The Impact of Computation Time and Experience on Decision Values

K. Carrie Armel and Antonio Rangel

(pp. 163-68)

Economic Insights from "Neuroeconomic" Data

Andrew Caplin and Mark Dean

(pp. 169-74)

Theories of the Mind

Isabelle Brocas and Juan D. Carrillo

(pp. 175-80)

Articles: Information Aggregation by Voting

Information Aggregation in Standing and Ad Hoc Committees

S. Nageeb Ali, Jacob K. Goeree, Navin Kartik and Thomas R. Palfrey

(pp. 181-86)

Costly Expertise

Dino Gerardi and Leeat Yariv

(pp. 187-93)

Information Aggregation and Strategic Abstention in Large Laboratory Elections

Marco Battaglini, Rebecca B. Morton and Thomas R. Palfrey

(pp. 194-200)

Articles: Work Incentives, Motivation, and Identity

Intrinsic Motivation and Incentives

Canice Prendergast

(pp. 201-05)

Status Incentives

Timothy Besley and Maitreesh Ghatak

(pp. 206-11)

Identity, Supervision, and Work Groups

George A. Akerlof and Rachel E. Kranton

(pp. 212-17)

Articles: Expertise and Macroeconomic Policy

Insiders versus Outsiders in Monetary Policymaking

Timothy Besley, Neil Meads and Paolo Surico

(pp. 218-23)

Do Monetary Policy Committees Need Leaders? A Report on an Experiment

Alan S. Blinder and John Morgan

(pp. 224-29)

The FOMC versus the Staff: Where Can Monetary Policymakers Add Value?

Christina D. Romer and David H. Romer

(pp. 230-35)

Articles: Complexity and Dynamics in Macroeconomics: Alternatives to the DSGE Models

Beyond DSGE Models: Toward an Empirically Based Macroeconomics

David Colander, Peter Howitt, Alan Kirman, Axel Leijonhufvud and Perry Mehrling

(pp. 236-40)

Frequency-Specific Effects of Stabilization Policies

William A. Brock, Steven N. Durlauf and Giacomo Rondina

(pp. 241-45)

Modeling Macroeconomies as Open-Ended Dynamic Systems of Interacting Agents

Blake LeBaron and Leigh Tesfatsion

(pp. 246-50)

Allowing the Data to Speak Freely: The Macroeconometrics of the Cointegrated Vector Autoregression

Kevin D. Hoover, Soren Johansen and Katarina Juselius

(pp. 251-55)

Articles: Labor Market Flows

The Ins and Outs of European Unemployment

Barbara Petrongolo and Christopher A. Pissarides

(pp. 256-62)

The Decline of Job Loss and Why It Matters

Steven J. Davis

(pp. 263-67)

The Probability of Finding a Job

Robert Shimer

(pp. 268-73)

Articles: Price Manipulation in Financial Markets

How to Define Illegal Price Manipulation

Albert S. Kyle and S. Viswanathan

(pp. 274-79)

Microstructure Bluffing with Nested Information

Archishman Chakraborty and Bilge Yilmaz

(pp. 280-84)

Manipulation and Equity-Based Compensation

Lin Peng and Ailsa Roell

(pp. 285-90)

Articles: Life-Cycle Investing

Contingent Claims Analysis and Life-Cycle Finance

Zvi Bodie, Doriana Ruffino and Jonathan Treussard

(pp. 291-96)

Optimal Life-Cycle Investing with Flexible Labor Supply: A Welfare Analysis of Life-Cycle Funds

Francisco J. Gomes, Laurence J. Kotlikoff and Luis M. Viceira

(pp. 297-303)

Why Don’t People Insure Late-Life Consumption? A Framing Explanation of the Under-Annuitization Puzzle

Jeffrey R. Brown, Jeffrey R. Kling, Sendhil Mullainathan and Marian V. Wrobel

(pp. 304-09)

Articles: Assets and Credit among Low-Income Households

Mortgages, Risk, and Homeownership among Low- and Moderate-Income Families

Raphael W. Bostic and Kwan Ok Lee

(pp. 310-14)

Rates for Vehicle Loans: Race and Loan Source

Kerwin Kofi Charles, Erik Hurst and Melvin Stephens

(pp. 315-20)

Saving whilst Gambling: An Empirical Analysis of UK Premium Bonds

Peter Tufano

(pp. 321-26)

Articles: New Perspectives on Financial Globalization

The Drivers of Financial Globalization

Philip R. Lane and Gian Maria Milesi-Ferretti

(pp. 327-32)

Home Bias at the Fund Level

Harald Hau and Helene Rey

(pp. 333-38)

Is the 2007 US Sub-prime Financial Crisis So Different? An International Historical Comparison

Carmen M. Reinhart and Kenneth S. Rogoff

(pp. 339-44)

Articles: Applications of Recent Methodology in Project Evaluation

Using Selection on Observed Variables to Assess Bias from Unobservables When Evaluating Swan-Ganz Catheterization

Joseph G. Altonji, Todd E. Elder and Christopher R. Taber

(pp. 345-50)

Treatment Effect Bounds under Monotonicity Assumptions: An Application to Swan-Ganz Catheterization

Jay Bhattacharya, Azeem M. Shaikh and Edward Vytlacil

(pp. 351-56)

Estimating Average Treatment Effects with Continuous and Discrete Covariates: The Case of Swan-Ganz Catheterization

Qi Li, Jeffrey S. Racine and Jeffrey M. Wooldridge

(pp. 357-62)

Articles: Gender Differences in Careers, Education, and Games

Transitions: Career and Family Life Cycles of the Educational Elite

Claudia Goldin and Lawrence F. Katz

(pp. 363-69)

Exploring the Impact of Financial Incentives on Stereotype Threat: Evidence from a Pilot Study

Roland G. Fryer Jr., Steven D. Levitt and John A. List

(pp. 370-75)

Do Women Supply More Public Goods Than Men? Preliminary Experimental Evidence from Matrilineal and Patriarchal Societies

Steffen Andersen, Erwin Bulte, Uri Gneezy and John A. List

(pp. 376-81)

Articles: Macroeconomic Factors Affecting Poverty and Income Distribution among African Americans

African American and White Differences in the Impacts of Monetary Policy on the Duration of Unemployment

William M. Rodgers

(pp. 382-86)

The Changing Incidence and Severity of Poverty Spells among Female-Headed Families

David Card and Rebecca M. Blank

(pp. 387-91)

Poverty Volatility and Macroeconomic Quiescence

Philip N. Jefferson

(pp. 392-97)

Non-white Poverty and Macroeconomy: The Impact of Growth

Gary A. Hoover, Walter Enders and Donald G. Freeman

(pp. 398-402)

Articles: Women, Finances, and Children

Understanding the Returns to Delayed Childbearing for Working Women

Kasey Buckles

(pp. 403-07)

The Effect of Children's Gender on Living Arrangements and Child Support

Kristin Mammen

(pp. 408-12)

Planning and Financial Literacy: How Do Women Fare?

Annamaria Lusardi and Olivia S. Mitchell

(pp. 413-17)

Who Chooses Annuities? An Experimental Investigation of the Role of Gender, Framing, and Defaults

Julie R. Agnew, Lisa R. Anderson, Jeffrey R. Gerlach and Lisa R. Szykman

(pp. 418-22)

Articles: Sources of International Price Stickiness

A Structural Approach to Explaining Incomplete Exchange-Rate Pass-Through and Pricing-to-Market

Pinelopi Koujianou Goldberg and Rebecca Hellerstein

(pp. 423-29)

Pass-Through in Retail and Wholesale

Emi Nakamura

(pp. 430-37)

Welfare Costs of Inflation in a Menu Cost Model

Ariel Burstein and Christian Hellwig

(pp. 438-43)

Articles: Firm Heterogeneity and International Trade

Endogenous Variety and the Gains from Trade

Costas Arkolakis, Svetlana Demidova, Peter J. Klenow and Andres Rodriguez-Clare

(pp. 444-50)

R&D Investments, Exporting, and the Evolution of Firm Productivity

Bee Yan Aw, Mark J. Roberts and Daniel Yi Xu

(pp. 451-56)

Firm-Level Heterogeneous Productivity and Demand Shocks: Evidence from Bangladesh

Hiau Looi Kee and Kala Krishna

(pp. 457-62)

Articles: Height, Health, and Economic Development

Height, Health, and Cognitive Function at Older Ages

Anne Case and Christina Paxson

(pp. 463-67)

Height, Health, and Inequality: The Distribution of Adult Heights in India

Angus Deaton

(pp. 468-74)

Height and Economic Development in Italy, 1730-1980

Franco Peracchi

(pp. 475-81)

Articles: Psychology and Development: Theory and Experimental Evidence

How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya

Esther Duflo, Michael Kremer and Jonathan Robinson

(pp. 482-88)

Limited Attention and Income Distribution

Abhijit V. Banerjee and Sendhil Mullainathan

(pp. 489-93)

Spite and Development

Ernst Fehr, Karla Hoff and Mayuresh Kshetramade

(pp. 494-99)

Articles: New Research in Development Economics: Marriage, Motherhood, and Conflict

Motherhood and Female Labor Force Participation: Evidence from Infertility Shocks

Jorge M. Aguero and Mindy S. Marks

(pp. 500-504)

Segregation, Rent Control, and Riots: The Economics of Religious Conflict in an Indian City

Erica Field, Matthew Levinson, Rohini Pande and Sujata Visaria

(pp. 505-10)

Stress and Birth Weight: Evidence from Terrorist Attacks

Adriana Camacho

(pp. 511-15)

Prostitutes and Brides?

Raj Arunachalam and Manisha Shah

(pp. 516-22)

Articles: New Comparative Economic History

Made in America? The New World, the Old, and the Industrial Revolution

Gregory Clark, Kevin H. O'Rourke and Alan M. Taylor

(pp. 523-28)

Trade Costs, 1870-2000

David S. Jacks, Christopher M. Meissner and Dennis Novy

(pp. 529-34)

A Century of Global Equity Market Correlations

Dennis P. Quinn and Hans-Joachim Voth

(pp. 535-40)

Articles: Assessment of Economics in US High Schools and Undergraduate Programs

The National Assessment of Educational Progress in Economics: Findings for General Economics

William B. Walstad and Stephen Buckles

(pp. 541-46)

The Test of Understanding of College Economics

William B. Walstad and Ken Rebeck

(pp. 547-51)

Assessment Practices and Trends in Undergraduate Economics Courses

Georg Schaur, Michael Watts and William E. Becker

(pp. 552-56)

Awards: Awards

Susan C. Athey: John Bates Clark Medalist 2007

Georg Schaur, Michael Watts and William E. Becker

(pp. 559-60)

Proceedings: Reports

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American Economic Review

Vol. 98 No. 2 May 2008

Find articles in this issue

Editors' Introduction William R. Johnson and Jane E. Voros (p. viii)

Foreword Avinash K. Dixit (p. x)

The Economics of Climate Change Nicholas Stern (pp. 1-37)

Returning to New Orleans after Hurricane Katrina Christina Paxson and Cecilia Elena Rouse (pp. 38-42)

The Effect of Hurricane Katrina on the Labor Market Outcomes of Evacuees Jeffrey A. Groen and Anne E. Polivka (pp. 43-48)

How Hurricanes Affect Wages and Employment in Local Labor Markets Ariel R. Belasen and Solomon W. Polachek (pp. 49-53)

Measuring the Labor Market Impacts of Hurricane Katrina Migration: Evidence from Houston, Texas Molly Fifer McIntosh (pp. 54-57)

Consumption Disasters in the Twentieth Century Robert J. Barro and Jose F. Ursua (pp. 58-63)

Variable Rare Disasters: A Tractable Theory of Ten Puzzles in Macro-finance Xavier Gabaix (pp. 64-67)

Disasters and Recoveries Francois Gourio (pp. 68-73)

Disasters and the Welfare Cost of Uncertainty Ian W. R. Martin (pp. 74-78)

How Big Are Total Individual Income Tax Expenditures, and Who Benefits from Them? Leonard E. Burman, Christopher Geissler and Eric J. Toder (pp. 79-83)

Tax Expenditures for Owner-Occupied Housing: Deductions for Property Taxes and Mortgage Interest and the Exclusion of Imputed Rental Income James Poterba and Todd Sinai (pp. 84-89)

Using Tax Expenditures to Achieve Energy Policy Goals Gilbert E. Metcalf (pp. 90-94)

Institutions: Top Down or Bottom Up? William Easterly (pp. 95-99)

Second-Best Institutions Dani Rodrik (pp. 100-104)

The Administrative Foundations of Self-Enforcing Constitutions Yadira Gonzalez de Lara, Avner Greif and Saumitra Jha (pp. 105-09)

The Future of the IMF and the World Bank Raghuram G. Rajan (pp. 110-15)

Rethinking Global Environmental Governance to Deal with Climate Change: The Multiple Logics of Global Collective Action Daniel C. Esty (pp. 116-21)

Designing Institutions to Deal with Terrorism in the United States Martin Feldstein (pp. 122-26)

EU Institutional Reform: Evidence on Globalization and International Cooperation Richard Baldwin (pp. 127-32)

Widening and Deepening: Reforming the European Union Erik Berglof, Mike Burkart, Guido Friebel and Elena Paltseva (pp. 133-37)

Should the Euro Area Be Run as a Closed Economy? Carlo Favero and Francesco Giavazzi (pp. 138-45)

Modeling Competition and Market Equilibrium in Insurance: Empirical Issues Pierre-Andre Chiappori and Bernard Salanie (pp. 146-50)

Does the Secondary Life Insurance Market Threaten Dynamic Insurance? Glenn Daily, Igal Hendel and Alessandro Lizzeri (pp. 151-56)

Preference Heterogeneity and Insurance Markets: Explaining a Puzzle of Insurance David M. Cutler, Amy Finkelstein and Kathleen McGarry (pp. 157-62)

The Impact of Computation Time and Experience on Decision Values K. Carrie Armel and Antonio Rangel (pp. 163-68)

Economic Insights from "Neuroeconomic" Data Andrew Caplin and Mark Dean (pp. 169-74)

Theories of the Mind Isabelle Brocas and Juan D. Carrillo (pp. 175-80)

Information Aggregation in Standing and Ad Hoc Committees S. Nageeb Ali, Jacob K. Goeree, Navin Kartik and Thomas R. Palfrey (pp. 181-86)

Costly Expertise Dino Gerardi and Leeat Yariv (pp. 187-93)

Information Aggregation and Strategic Abstention in Large Laboratory Elections Marco Battaglini, Rebecca B. Morton and Thomas R. Palfrey (pp. 194-200)

Intrinsic Motivation and Incentives Canice Prendergast (pp. 201-05)

Status Incentives Timothy Besley and Maitreesh Ghatak (pp. 206-11)

Identity, Supervision, and Work Groups George A. Akerlof and Rachel E. Kranton (pp. 212-17)

Insiders versus Outsiders in Monetary Policymaking Timothy Besley, Neil Meads and Paolo Surico (pp. 218-23)

Do Monetary Policy Committees Need Leaders? A Report on an Experiment Alan S. Blinder and John Morgan (pp. 224-29)

The FOMC versus the Staff: Where Can Monetary Policymakers Add Value? Christina D. Romer and David H. Romer (pp. 230-35)

Beyond DSGE Models: Toward an Empirically Based Macroeconomics David Colander, Peter Howitt, Alan Kirman, Axel Leijonhufvud and Perry Mehrling (pp. 236-40)

Frequency-Specific Effects of Stabilization Policies William A. Brock, Steven N. Durlauf and Giacomo Rondina (pp. 241-45)

Modeling Macroeconomies as Open-Ended Dynamic Systems of Interacting Agents Blake LeBaron and Leigh Tesfatsion (pp. 246-50)

Allowing the Data to Speak Freely: The Macroeconometrics of the Cointegrated Vector Autoregression Kevin D. Hoover, Soren Johansen and Katarina Juselius (pp. 251-55)

The Ins and Outs of European Unemployment Barbara Petrongolo and Christopher A. Pissarides (pp. 256-62)

The Decline of Job Loss and Why It Matters Steven J. Davis (pp. 263-67)

The Probability of Finding a Job Robert Shimer (pp. 268-73)

How to Define Illegal Price Manipulation Albert S. Kyle and S. Viswanathan (pp. 274-79)

Microstructure Bluffing with Nested Information Archishman Chakraborty and Bilge Yilmaz (pp. 280-84)

Manipulation and Equity-Based Compensation Lin Peng and Ailsa Roell (pp. 285-90)

Contingent Claims Analysis and Life-Cycle Finance Zvi Bodie, Doriana Ruffino and Jonathan Treussard (pp. 291-96)

Optimal Life-Cycle Investing with Flexible Labor Supply: A Welfare Analysis of Life-Cycle Funds Francisco J. Gomes, Laurence J. Kotlikoff and Luis M. Viceira (pp. 297-303)

Why Don’t People Insure Late-Life Consumption? A Framing Explanation of the Under-Annuitization Puzzle Jeffrey R. Brown, Jeffrey R. Kling, Sendhil Mullainathan and Marian V. Wrobel (pp. 304-09)

Mortgages, Risk, and Homeownership among Low- and Moderate-Income Families Raphael W. Bostic and Kwan Ok Lee (pp. 310-14)

Rates for Vehicle Loans: Race and Loan Source Kerwin Kofi Charles, Erik Hurst and Melvin Stephens (pp. 315-20)

Saving whilst Gambling: An Empirical Analysis of UK Premium Bonds Peter Tufano (pp. 321-26)

The Drivers of Financial Globalization Philip R. Lane and Gian Maria Milesi-Ferretti (pp. 327-32)

Home Bias at the Fund Level Harald Hau and Helene Rey (pp. 333-38)

Is the 2007 US Sub-prime Financial Crisis So Different? An International Historical Comparison Carmen M. Reinhart and Kenneth S. Rogoff (pp. 339-44)

Using Selection on Observed Variables to Assess Bias from Unobservables When Evaluating Swan-Ganz Catheterization Joseph G. Altonji, Todd E. Elder and Christopher R. Taber (pp. 345-50)

Treatment Effect Bounds under Monotonicity Assumptions: An Application to Swan-Ganz Catheterization Jay Bhattacharya, Azeem M. Shaikh and Edward Vytlacil (pp. 351-56)

Estimating Average Treatment Effects with Continuous and Discrete Covariates: The Case of Swan-Ganz Catheterization Qi Li, Jeffrey S. Racine and Jeffrey M. Wooldridge (pp. 357-62)

Transitions: Career and Family Life Cycles of the Educational Elite Claudia Goldin and Lawrence F. Katz (pp. 363-69)

Exploring the Impact of Financial Incentives on Stereotype Threat: Evidence from a Pilot Study Roland G. Fryer Jr., Steven D. Levitt and John A. List (pp. 370-75)

Do Women Supply More Public Goods Than Men? Preliminary Experimental Evidence from Matrilineal and Patriarchal Societies Steffen Andersen, Erwin Bulte, Uri Gneezy and John A. List (pp. 376-81)

African American and White Differences in the Impacts of Monetary Policy on the Duration of Unemployment William M. Rodgers (pp. 382-86)

The Changing Incidence and Severity of Poverty Spells among Female-Headed Families David Card and Rebecca M. Blank (pp. 387-91)

Poverty Volatility and Macroeconomic Quiescence Philip N. Jefferson (pp. 392-97)

Non-white Poverty and Macroeconomy: The Impact of Growth Gary A. Hoover, Walter Enders and Donald G. Freeman (pp. 398-402)

Understanding the Returns to Delayed Childbearing for Working Women Kasey Buckles (pp. 403-07)

The Effect of Children's Gender on Living Arrangements and Child Support Kristin Mammen (pp. 408-12)

Planning and Financial Literacy: How Do Women Fare? Annamaria Lusardi and Olivia S. Mitchell (pp. 413-17)

Who Chooses Annuities? An Experimental Investigation of the Role of Gender, Framing, and Defaults Julie R. Agnew, Lisa R. Anderson, Jeffrey R. Gerlach and Lisa R. Szykman (pp. 418-22)

A Structural Approach to Explaining Incomplete Exchange-Rate Pass-Through and Pricing-to-Market Pinelopi Koujianou Goldberg and Rebecca Hellerstein (pp. 423-29)

Pass-Through in Retail and Wholesale Emi Nakamura (pp. 430-37)

Welfare Costs of Inflation in a Menu Cost Model Ariel Burstein and Christian Hellwig (pp. 438-43)

Endogenous Variety and the Gains from Trade Costas Arkolakis, Svetlana Demidova, Peter J. Klenow and Andres Rodriguez-Clare (pp. 444-50)

R&D Investments, Exporting, and the Evolution of Firm Productivity Bee Yan Aw, Mark J. Roberts and Daniel Yi Xu (pp. 451-56)