{"title":"Recombinant Innovation, Novel Ideas, and the Start of Nobel Prize–Winning Work","authors":"John C. Ham, Brian Quistorff, Bruce A. Weinberg","doi":"10.1111/iere.12768","DOIUrl":"https://doi.org/10.1111/iere.12768","url":null,"abstract":"<div>\u0000 \u0000 <p>We draw on a recombinant view of innovation, where being in a new location and/or multiple locations leads to exposure to novel combinations of ideas that increase the creativity of top scientists. Using a rich, unique data set we helped assemble, we estimate the empirical relationship between being in a new location and/or multiple locations and the expected interval before an eventual Nobel laureate (ENL) commences their prize-winning work. We find that being in a new location and in multiple locations are substantially and significantly associated with a shorter expected interval before ENLs commence their prize-winning work.</p>\u0000 </div>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"66 2","pages":"965-979"},"PeriodicalIF":1.5,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143950138","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Francesco Agostinelli, Morteza Saharkhiz, Matthew Wiswall
{"title":"Home and School in the Development of Children","authors":"Francesco Agostinelli, Morteza Saharkhiz, Matthew Wiswall","doi":"10.1111/iere.12774","DOIUrl":"https://doi.org/10.1111/iere.12774","url":null,"abstract":"<p>We develop an empirical framework integrating Child Development and Education Production Function literature. It accounts for classroom and parental influences, skill measurement issues, and cognitive/noncognitive interactions. Both home and school investments shape children's skills by kindergarten, with low-skill children benefiting most from improvements. While classrooms are generally more productive, reducing disparities in home investments is more effective in closing income-related skill gaps. This stems from greater inequality in home investments than in school quality across socioeconomic groups.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"66 2","pages":"527-566"},"PeriodicalIF":1.5,"publicationDate":"2025-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/iere.12774","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143950219","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Sovereign Spreads and the Political Leaning of Nations","authors":"Johnny Cotoc, Alok Johri, César Sosa-Padilla","doi":"10.1111/iere.12767","DOIUrl":"https://doi.org/10.1111/iere.12767","url":null,"abstract":"<div>\u0000 \u0000 <p>Nations with a higher propensity to elect left governments tend to pay higher and more volatile sovereign spreads. We build a sovereign default model with elections between left and right policymakers. Reelection probabilities increase with government spending, with the left having a small advantage (consistent with the data). We use variation in “election efficiency” to create model economies that elect the left more (left leaning) or less frequently (right leaning) in equilibrium. The left-leaning economy has a higher reluctance for fiscal austerity than the right-leaning economy, chooses higher government spending, and faces higher spreads, resulting in lower welfare.</p></div>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"66 2","pages":"687-709"},"PeriodicalIF":1.5,"publicationDate":"2025-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143950002","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yifan Gong, Todd Stinebrickner, Ralph Stinebrickner, Yuxi Yao
{"title":"The Role of Nonpecuniary Considerations: Location Decisions of College Graduates From Low-Income Backgrounds","authors":"Yifan Gong, Todd Stinebrickner, Ralph Stinebrickner, Yuxi Yao","doi":"10.1111/iere.12763","DOIUrl":"https://doi.org/10.1111/iere.12763","url":null,"abstract":"<p>We examine the initial postcollege geographic location decisions of students from low-income backgrounds, focusing on the role of nonpecuniary considerations. Novel survey questions, in the spirit of the contingent valuation approach, allow us to characterize the full nonpecuniary benefits of each relevant location in dollar equivalents. Supplementing data on perceived location choice probabilities and wage expectations with our nonpecuniary measures allows us to estimate a stylized location choice model and obtain a comprehensive understanding of the importance of pecuniary and nonpecuniary factors. We also combine the nonpecuniary measures with realized location and earnings outcomes to characterize inequality in overall welfare.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"66 2","pages":"903-931"},"PeriodicalIF":1.5,"publicationDate":"2025-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/iere.12763","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143950220","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"ON THE OPTIMALITY OF DIFFERENTIAL ASSET TAXATION","authors":"Thomas Phelan","doi":"10.1111/iere.12753","DOIUrl":"https://doi.org/10.1111/iere.12753","url":null,"abstract":"<p>In this article, I study the optimality of differential asset taxation in an environment with entrepreneurs and workers in which output is stochastic and entrepreneurs can misreport profits and abscond with capital. I show that a stationary efficient allocation may be implemented as an equilibrium with endogenous collateral constraints, transfers to newborns, and linear taxes on profits, investment, and interest. Furthermore, these taxes differ from one another and serve distinct purposes. The profits tax shares risk and depends solely on the severity of the misreporting friction, whereas the remaining instruments determine the efficient mean and variance of entrepreneurs' consumption growth.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"66 1","pages":"53-78"},"PeriodicalIF":1.5,"publicationDate":"2025-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143397385","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"TRADE LIBERALIZATION AND THE GREAT LABOR REALLOCATION","authors":"Yuan Zi","doi":"10.1111/iere.12751","DOIUrl":"https://doi.org/10.1111/iere.12751","url":null,"abstract":"<p>I examine how migration frictions shape the effects of trade policy by analyzing the impact of tariff reductions on labor allocation in China and the role of hukou-based migration frictions. Trade liberalization induces significant labor reallocation, greater in regions with lower hukou frictions. Quantitatively, trade liberalization increases China's welfare by 0.72%. Abolishing the hukou system directly improves welfare by 1.75% but reduces gains from tariff reductions by 18% and amplifies negative distributional effects. In the process, I develop a novel measure of hukou-related migration frictions.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"66 2","pages":"933-963"},"PeriodicalIF":1.5,"publicationDate":"2025-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143950174","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"UNDERSTANDING THE GREAT RECESSION THROUGH THE BANKING SECTOR","authors":"Toshiaki Ogawa","doi":"10.1111/iere.12747","DOIUrl":"https://doi.org/10.1111/iere.12747","url":null,"abstract":"<p>I develop a general equilibrium model to explore heterogeneous bank liquidity management. Smaller banks, driven by stronger precautionary motives, tend to accumulate capital and liquidity buffers, rendering them less susceptible to liquidity risk than larger banks. Whereas negative productivity shocks affect all banks' loans similarly, liquidity shocks result in lending responses that vary by bank size. Mapping the model to panel data, I argue that initially, liquidity shocks were the primary driver of the Great Recession, followed by negative demand shocks that accounted for approximately 60% of the recession's greatest fall in aggregate loans.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"66 1","pages":"331-361"},"PeriodicalIF":1.5,"publicationDate":"2024-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143396974","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}