{"title":"Shocks vs. Responsiveness: What Drives Time-Varying Dispersion?","authors":"David Berger, Joseph Vavra","doi":"10.3386/w23143","DOIUrl":"https://doi.org/10.3386/w23143","url":null,"abstract":"The dispersion of many economic variables is countercyclical. What drives this fact? Greater dispersion could arise from greater volatility of shocks or from agents responding more to shocks of constant size. Without data separately measuring exogenous shocks and endogenous responses, a theoretical debate between these explanations has emerged. In this paper, we provide novel identification using the open-economy environment: using confidential BLS microdata, we document a robust positive relationship between exchange rate pass-through and the dispersion of item-level price changes. We show this relationship arises naturally in models with time-varying responsiveness but is at odds with models featuring volatility shocks.","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"190 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80750722","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Uptick in Income Segregation: Real Trend or Random Sampling Variance","authors":"J. Logan, A. Foster, Jun Ke, Fan Li","doi":"10.3386/w23656","DOIUrl":"https://doi.org/10.3386/w23656","url":null,"abstract":"Recent studies have reported a reversal of an earlier trend in income segregation in metropolitan regions, from a decline in the 1990s to an increase in the 2000-2010 decade. This finding reinforces concerns about the growing overall income inequality in the U.S. since the 1970s. Yet the evidence may be systematically biased to show an upward trend because the effective sample for the American Community Survey (ACS) is much smaller than it was for Census 2000, to which it is being compared. There is a possibility that the apparent changes in disparities across census tracts result partly from a higher level of sampling variation and bias due to the smaller sample. This study uses 100% microdata from the 1940 census to simulate the impact of different sampling rates on estimates of several measures of segregation and to propose and test the effectiveness of approaches to correcting the bias. It then applies those approaches to publicly available data for 2000 and 2007-2011. The reduction in sample sizes associated with the ACS results in exaggeration of evidence for increasing income segregation for all measures tested here, especially for subgroups (African Americans are studied here as an example). The methods of correction applied here will yield more conclusive and unbiased results when applied to the original sample data that is held internally by the Census Bureau.","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"20 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80876045","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"It's Not the Thought that Counts: A Field Experiment on Gift Exchange and Giving at a Public University","authors":"Catherine C. Eckel, David H. Herberich, J. Meer","doi":"10.3386/W22867","DOIUrl":"https://doi.org/10.3386/W22867","url":null,"abstract":"One of the most important outstanding questions in fundraising is whether donor premiums, or gifts to prospective donors, are effective in increasing donations. Donors may be motivated by reciprocity, making premium recipients more likely to donate and give larger donations. Or donors may dislike premiums, preferring instead to maximize the value of their donations to the charity; in this case donor premiums would be ineffective. We conduct a field experiment in conjunction with the fundraising campaign of a major university to examine these questions. Treatments include a control, an unconditional premium with two gift quality levels, and a set of conditional premium treatments. The conditional treatments include opt-out and opt-in conditions to test whether donors prefer to forego premiums. Compared with the control, donors are twice as likely to give when they receive an unconditional, high-quality gift. The low-quality unconditional and all conditional premiums have little impact on the likelihood or level of giving. Donors do not respond negatively to premiums: rates of giving do not suffer when premiums are offered. In addition, few opt out given the opportunity to do so, indicating that they like gifts, and suggesting that reciprocity rather than altruism determines the impact of premiums on giving.","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"25 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81043067","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Katharine G. Abraham, J. Haltiwanger, Kristin Sandusky, James R. Spletzer
{"title":"The Consequences of Long-Term Unemployment: Evidence from Linked Survey and Administrative Data","authors":"Katharine G. Abraham, J. Haltiwanger, Kristin Sandusky, James R. Spletzer","doi":"10.3386/W22665","DOIUrl":"https://doi.org/10.3386/W22665","url":null,"abstract":"It is well known that the long-term unemployed fare worse in the labor market than the short-term unemployed, but less clear why this is so. One potential explanation is that the long-term unemployed are “bad apples” who had poorer prospects from the outset of their spells (heterogeneity). Another is that their bad outcomes are a consequence of the extended unemployment they have experienced (state dependence). We use Current Population Survey (CPS) data on unemployed individuals linked to wage records for the same people to distinguish between these competing explanations. For each person in our sample, we have wage record data that cover the period from 20 quarters before to 11 quarters after the quarter in which the person is observed in the CPS. This gives us rich information about prior and subsequent work histories not available to previous researchers that we use to control for individual heterogeneity that might be affecting subsequent labor market outcomes. Even with these controls in place, we find that unemployment duration has a strongly negative effect on the likelihood of subsequent employment. This result is robust to efforts to account for differences in labor market circumstances that might affect job-finding success rates. The findings are inconsistent with the heterogeneity (“bad apple”) explanation for why the long-term unemployed fare worse than the short-term unemployed and lend support to the state dependence explanation for the negative association between unemployment duration and subsequent employment rates. We also find that longer unemployment durations are associated with lower subsequent earnings, though this is mainly attributable to the long-term unemployed having a lower likelihood of subsequent employment rather than to their having lower earnings once a job is found.","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"94 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83905448","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Bringing Real Market Participants' Real Preferences into the Lab: An Experiment that Changed the Course Allocation Mechanism at Wharton","authors":"Eric Budish, Judd B. Kessler","doi":"10.3386/w22448","DOIUrl":"https://doi.org/10.3386/w22448","url":null,"abstract":"This paper reports on an experimental test of a new market design that is attractive in theory but makes the common and potentially unrealistic assumption that “agents report their type†; that is, that market participants can perfectly report their preferences to the mechanism. Concerns about preference reporting led to a novel experimental design that brought real market participants’ real preferences into the lab, as opposed to endowing experimental subjects with artificial preferences as is typical in market design. The experiment found that market participants were able to report their preferences “accurately enough†to realize efficiency and fairness benefits of the mechanism even while preference-reporting mistakes meaningfully harmed mechanism performance. [Working Paper 22448]","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"162 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82651556","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Sebastian Galiani, Patrick J. McEwan, B. Quistorff
{"title":"External and Internal Validity of a Geographic Quasi-Experiment Embedded in Cluster-Randomized Experiment","authors":"Sebastian Galiani, Patrick J. McEwan, B. Quistorff","doi":"10.1108/S0731-905320170000038009","DOIUrl":"https://doi.org/10.1108/S0731-905320170000038009","url":null,"abstract":"This paper analyzes a geographic quasi-experiment embedded in a cluster-randomized experiment in Honduras. In the experiment, average treatment effects on school enrollment and child labor were large—especially in the poorest blocks—and could be generalized to a policy-relevant population given the original sample selection criteria. In contrast, the geographic quasi-experiment yielded point estimates that, for two of three dependent variables, were attenuated. A judicious policy analyst without access to the experimental results might have provided misleading advice based on the magnitude of point estimates. We assessed two main explanations for the difference in point estimates, related to external and internal validity.","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"2 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78511689","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
S. Carter, W. Dudley, David S. Lyle, John Z. Smith
{"title":"Who's the Boss? The Effect of Strong Leadership on Employee Turnover","authors":"S. Carter, W. Dudley, David S. Lyle, John Z. Smith","doi":"10.3386/W22383","DOIUrl":"https://doi.org/10.3386/W22383","url":null,"abstract":"Despite the importance placed on supervision in the workplace, little is known about the effects of a boss’ leadership quality on labor market outcomes such as employee job retention. Using plausibly exogenous assignment of junior officers to bosses in the U.S. Army, we find positive retention effects for those assigned to immediate and senior bosses who are good leaders. These effects are strongest for officers with high SAT scores. Junior officers who share the same home geographic region, high SAT, and undergraduate institution as their bosses who also have strong leadership qualities retain at the highest rates.","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"57 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79104992","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Harold L. Cole, Harold L. Cole, Daniel Neuhann, Guillermo Ordoñez, Guillermo Ordoñez
{"title":"Debt Crises: For Whom the Bell Tolls","authors":"Harold L. Cole, Harold L. Cole, Daniel Neuhann, Guillermo Ordoñez, Guillermo Ordoñez","doi":"10.3386/W22330","DOIUrl":"https://doi.org/10.3386/W22330","url":null,"abstract":"What a country has done in the past, and what other countries are doing in the present, can feedback for good or for ill in debt markets. We develop a simple model of sovereign bond markets with global investors and endogenous information acquisition about fundamental default probabilities. This model displays hysteresis and contagion in sovereign bond spreads. Small fundamental shocks in one country can induce investors to acquire information, generating price volatility and increased risk premia. These changes may also induce investors to rebalance their portfolio, generating market segmentation and information acquisition in seemingly unrelated economies. Information regimes may persist over time, requiring large improvements in fundamentals to return to more stable bond spread conditions.","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"8 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79876477","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Sentiments and Economic Activity: Evidence from U.S. States","authors":"J. Benhabib, M. Spiegel","doi":"10.24148/WP2016-19","DOIUrl":"https://doi.org/10.24148/WP2016-19","url":null,"abstract":"Using data from the Michigan Survey, we find a strong relationship between expectations concerning national output growth and future state economic activity. This linkage suggests that sentiment influences aggregate demand. This relationship is robust to a battery of sensitivity tests. However, national sentiment is also positively related to past state economic activity. We therefore turn to instrumental variables, positing that agents in states with a higher share of congressmen from the political party of the sitting President will be more optimistic. This instrument is strong in the first stage, and confirms the relationship between sentiment and future state economic activity.","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"13 1","pages":"01-40"},"PeriodicalIF":0.0,"publicationDate":"2016-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73148857","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effect of Single-Sex Education on Test Scores, School Completion, Arrests, and Teen Motherhood: Evidence from School Transitions","authors":"C. Jackson","doi":"10.3386/W22222","DOIUrl":"https://doi.org/10.3386/W22222","url":null,"abstract":"In 2010, the Ministry of Education in Trinidad and Tobago converted 20 low-performing secondary schools from coeducational to single-sex. I exploit these conversions to identify the causal effect of single-sex schooling holding other school inputs constant. After also accounting for student selection, single-sex cohorts at conversion schools score higher on national exams and are four percentage points more likely to complete secondary school. There are also important non-academic effects; all-boys cohorts have fewer arrests as teens, and all-girls cohorts have lower teen pregnancy rates. These benefits are achieved at zero financial cost. Survey evidence suggests that these single-sex effects reflect both direct gender peer effects due to interactions between classmates, and indirect effects generated through changes in teacher behavior.","PeriodicalId":18934,"journal":{"name":"National Bureau of Economic Research","volume":"25 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89668843","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}