{"title":"A THEORY OF ECONOMIC DISINTEGRATION","authors":"Eckhard Janeba, Karl Schulz","doi":"10.1111/iere.12665","DOIUrl":"10.1111/iere.12665","url":null,"abstract":"<p>We study the impact of unilateral economic disintegration, such as Brexit, on national and international policies. We introduce firm mobility and business-tax policies into a general-equilibrium trade model and analyze the effects of disintegration on tax policies of asymmetric countries. Although the disintegrating country taxes less, business taxes converge in the remaining economic area. We highlight important differences with existing two-country models. Moreover, we predict a realignment of trade policies with a deeper integration inside the union and lower tariffs worldwide. The leaving country's endogenous integration response with other countries may fully compensate for the disintegration-induced welfare losses.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"65 1","pages":"353-392"},"PeriodicalIF":1.5,"publicationDate":"2023-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/iere.12665","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135131719","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":"INVENTORY MANAGEMENT IN DECENTRALIZED MARKETS","authors":"Fei Li, Charles Murry, Can Tian, Yiyi Zhou","doi":"10.1111/iere.12669","DOIUrl":"10.1111/iere.12669","url":null,"abstract":"<p>We present a directed search model of intermediaries' dynamic inventory and revenue management. Search frictions hinder instantaneous replenishment, prompting intermediaries to utilize dynamic inventory-based pricing and ordering strategies. In equilibrium, when inventory is high, an intermediary posts a lower retail price to speed up sales and depresses wholesale price to slow down purchases. We characterize the evolution dynamics of inventory holdings and their steady-state distribution, and extend the model to multiunit wholesale orders, product differentiation, and heterogeneous intermediaries. Using data from used-car dealers, we quantitatively evaluate the welfare consequence of used-car dealers' inventory management practice.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"65 1","pages":"431-470"},"PeriodicalIF":1.5,"publicationDate":"2023-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49526445","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}
Árpád Ábrahám, Pavel Brendler, Eva Cárceles-Poveda
{"title":"CAPITAL TAX REFORMS WITH POLICY UNCERTAINTY","authors":"Árpád Ábrahám, Pavel Brendler, Eva Cárceles-Poveda","doi":"10.1111/iere.12664","DOIUrl":"10.1111/iere.12664","url":null,"abstract":"<p>One important feature of capital tax reforms is the uncertainty regarding their duration. In a standard heterogeneous firm framework with financial frictions, we model policy uncertainty by assuming that reforms may be either repealed or maintained with some probability every period. We illustrate the effects of policy uncertainty in the context of the 2003 Bush tax cuts (2003 Job Growth Tax Relief Reconciliation Act), which lowered shareholder taxes. We show that policy uncertainty regarding dividend and capital gains taxes can explain why the Bush tax cuts had no statistically significant effect on investment, in line with the empirical evidence.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"65 1","pages":"75-116"},"PeriodicalIF":1.5,"publicationDate":"2023-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/iere.12664","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135353532","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":"UNEMPLOYMENT DURATION UNDER FLEXIBLE INFORMATION ACQUISITION","authors":"Jeong Ho (John) Kim, Kyungmin Kim, Marilyn Pease","doi":"10.1111/iere.12666","DOIUrl":"10.1111/iere.12666","url":null,"abstract":"<p>We consider a worker's job search problem in which firms arrive sequentially, observe the worker's unemployment duration, and conduct an interview to learn about her unobservable productivity. Firms engage in fully flexible information acquisition subject to a uniformly posterior-separable cost function. We provide a closed-form characterization of equilibrium job search dynamics and demonstrate that endogenous information amplifies the “stigma” effect of long unemployment duration relative to exogenous information. We also show that lowering firms' information-acquisition costs has ambiguous implications for a worker's unemployment duration.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"65 1","pages":"471-503"},"PeriodicalIF":1.5,"publicationDate":"2023-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135353114","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":"THE FULL RECESSION: PRIVATE VERSUS SOCIAL COSTS OF COVID-19","authors":"Juan-Carlos Cordoba, Marla Ripoll, Siqiang Yang","doi":"10.1111/iere.12667","DOIUrl":"10.1111/iere.12667","url":null,"abstract":"<p>2020 official recession figures ignore the costs associated with the loss of human life due to COVID-19. This article constructs full recession measures that consider the death toll. Our model features nonexpected utility, leisure, age-specific survival rates, and tractable heterogeneity. We find an average full recession of 10.7%, which reflects the net value of an aggregate drop in consumption of 2.7%, an average increase of 197 leisure hours and about 540,000 lives lost in the first pandemic year. The full recession for a utilitarian planner is 14.5%, which aligns with that of individuals in their late 50s.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"65 1","pages":"547-582"},"PeriodicalIF":1.5,"publicationDate":"2023-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46933496","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":"THE SHAPING OF A GENDER NORM: MARRIAGE, LABOR, AND FOOT-BINDING IN HISTORICAL CHINA","authors":"Xinyu Fan, Lingwei Wu","doi":"10.1111/iere.12663","DOIUrl":"10.1111/iere.12663","url":null,"abstract":"<p>This article presents a theory that explains the rise of foot-binding in historical China, in response to a gender-asymmetric social mobility shock that dispersed men's quality distribution in the marriage market. The theory characterizes the marriage market equilibrium and women's competition strategies before and after the shock. Empirical evidence using archival data corroborates the theoretical predictions that greater men's social mobility opportunities encouraged foot-binding and that a greater cost of women's labor discouraged foot-binding. The article thus highlights that costly gender norms can be traced back to gender asymmetry in social mobility opportunities.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"64 4","pages":"1819-1850"},"PeriodicalIF":1.5,"publicationDate":"2023-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48197811","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}
Jere R. Behrman, C. Simon Fan, Naijia Guo, Xiangdong Wei, Hongliang Zhang, Junsen Zhang
{"title":"TUTORING EFFICACY, HOUSEHOLD SUBSTITUTION, AND STUDENT ACHIEVEMENT: EXPERIMENTAL EVIDENCE FROM AN AFTER-SCHOOL TUTORING PROGRAM IN RURAL CHINA","authors":"Jere R. Behrman, C. Simon Fan, Naijia Guo, Xiangdong Wei, Hongliang Zhang, Junsen Zhang","doi":"10.1111/iere.12668","DOIUrl":"10.1111/iere.12668","url":null,"abstract":"<p>After-school tutoring has risen globally despite limited evidence of effectiveness. We implement a randomized after-school tutoring program in rural China where many children are left-behind by parents in care of grandparents. Compared to tutees cared for by parents, those in care of grandparents reported much smaller home-tutoring reductions but larger test-score gains. We interpret our data analysis with a model with tutoring efficacy and substitution between private and public inputs both differing by family background: Increased public tutoring generates larger test-score gains for children who experience greater tutoring efficacy and lesser substitution with household inputs, consistent with our estimates.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"65 1","pages":"149-189"},"PeriodicalIF":1.5,"publicationDate":"2023-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48839913","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":"ACCOUNTING FOR SOCIAL SECURITY CLAIMING BEHAVIOR","authors":"Svetlana Pashchenko, Ponpoje Porapakkarm","doi":"10.1111/iere.12658","DOIUrl":"10.1111/iere.12658","url":null,"abstract":"<p>We study why Social Security benefit claiming is concentrated at two ages, 62 and the full retirement age, and provide three main findings. First, we show that claiming behavior can be well explained by a parsimonious life-cycle model with fully rational agents. The two key mechanisms are (i) the strong unwillingness to hold annuities and (ii) the effects of the earnings test. Second, we show that current rules distort claiming and labor supply decisions, and eliminating these distortions results in large welfare gains. Finally, we show that claiming decisions can be used to sharpen the identification of important preference parameters.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"65 1","pages":"505-545"},"PeriodicalIF":1.5,"publicationDate":"2023-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/iere.12658","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136243138","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":"FOUR STYLIZED FACTS ABOUT COVID-19","authors":"Andrew G. Atkeson, Karen A. Kopecky, Tao Zha","doi":"10.1111/iere.12660","DOIUrl":"10.1111/iere.12660","url":null,"abstract":"<p>We develop a Bayesian method for estimating the dynamics of COVID-19 deaths and discover four key findings that expose the limitations of current structural epidemiological models . (i) Death growth rates declined rapidly from high levels during the initial 30 days of the epidemic worldwide. (ii) After this initial period, these rates fluctuated substantially around 0%. (iii) The cross-location standard deviation of death growth rates decreased rapidly in the first 10 days but remained high afterward. (iv) These insights apply to both effective reproduction numbers and their cross-location variability through epidemiological models. Our method is applicable to studying other epidemics.</p>","PeriodicalId":48302,"journal":{"name":"International Economic Review","volume":"65 1","pages":"3-42"},"PeriodicalIF":1.5,"publicationDate":"2023-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136215450","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}