{"title":"Race and the Income-Achievement Gap","authors":"Ryan Bacic, Angela Zheng","doi":"10.1111/ecin.13182","DOIUrl":"10.1111/ecin.13182","url":null,"abstract":"<p>A large literature documents a positive correlation between parental income and child test scores. In this paper, we study whether this relationship, the dependence of the cognitive skills of children on the socioeconomic resources of their parents, varies across race. Using education data linked to tax records, we find that the income-achievement gap is small for East Asian children while significantly larger for Indigenous children. School-level factors explains a large portion of the variation in the gap across race. Our results suggest that the large income-achievement gap for Indigenous students stems partially from inequality in special needs diagnoses.</p>","PeriodicalId":51380,"journal":{"name":"Economic Inquiry","volume":"62 1","pages":"5-23"},"PeriodicalIF":1.8,"publicationDate":"2023-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136114055","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Measurement errors in popular night lights data may bias estimated impacts of economic sanctions: Evidence from closing the Kaesong Industrial Zone","authors":"Bonggeun Kim, John Gibson, Geua Boe-Gibson","doi":"10.1111/ecin.13183","DOIUrl":"10.1111/ecin.13183","url":null,"abstract":"<p>Satellite-detected night lights data are widely used to evaluate economic impacts of sanctions. Such data should be free from political manipulation. However, measurement errors in these data, from blurring and bottom-coding, are rarely considered. To study such errors, we use a difference-in-differences analysis of impacts of closing the Kaesong Industrial Zone in North Korea—a sanction South Korea imposed in 2016. Luminosity in the affected region declined by a precisely estimated 50 percent. When using the popular Defense Meteorological Satellite Program (DMSP) night lights data the apparent impacts are imprecisely estimated and far smaller. Measurement errors in DMSP data may distort evaluations of sanctions.</p>","PeriodicalId":51380,"journal":{"name":"Economic Inquiry","volume":"62 1","pages":"375-389"},"PeriodicalIF":1.8,"publicationDate":"2023-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecin.13183","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136098193","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Political hierarchy spillovers: Evidence from China","authors":"Meng-Ting Chen, Jiakai Zhang","doi":"10.1111/ecin.13179","DOIUrl":"10.1111/ecin.13179","url":null,"abstract":"<p>This paper explores the impact of the political hierarchies of cities in China from different perspectives. First, we examine the economic disparities between prefectural cities and municipalities. Furthermore, this paper draws upon a quasi- experiment to analyze the impact of upgrading Chongqing to a municipality in 1997 using the synthetic control method. The city-upgrading policy significantly increased Chongqing's gross domestic product (GDP) in the following 4 years. Finally, we find that the policy increased GDP in treated cities within 1200 km of Chongqing by about 10%–13% relative to the control cities.</p>","PeriodicalId":51380,"journal":{"name":"Economic Inquiry","volume":"62 1","pages":"329-348"},"PeriodicalIF":1.8,"publicationDate":"2023-09-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135386704","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Did pandemic unemployment benefits increase unemployment? Evidence from early state-level expirations","authors":"Harry J. Holzer, Glenn Hubbard, Michael R. Strain","doi":"10.1111/ecin.13180","DOIUrl":"10.1111/ecin.13180","url":null,"abstract":"<p>During the 2021 pandemic year, the generosity of Unemployment Insurance benefits was expanded (Federal Pandemic Unemployment Compensation [FPUC]) and eligibility for benefits was broadened (Pandemic Unemployment Assistance [PUA]). These two programs were set to expire in September 2021. In June 2021, 18 states exited both FPUC and PUA and three states exited FPUC (but not PUA). Using Current Population Survey data and a wide range of estimation methods, we find that the flow of unemployed workers into employment increased by around two-thirds following early exit among prime-age workers. We also find evidence of reductions in state-level unemployment rates, increases in employment-populations ratios, and reductions in the share of households that had no difficulty meeting expenses.</p>","PeriodicalId":51380,"journal":{"name":"Economic Inquiry","volume":"62 1","pages":"24-38"},"PeriodicalIF":1.8,"publicationDate":"2023-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135965622","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Pre-play promises, threats and commitments under partial credibility","authors":"Tigran Melkonyan, Surajeet Chakravarty","doi":"10.1111/ecin.13178","DOIUrl":"10.1111/ecin.13178","url":null,"abstract":"<p>The paper examines how pre-play communication between players with partial credibility affects the ensuing strategic interaction. We consider an environment where players are uncertain about the economic and psychological costs of reneging on promises but learn these at the time of their implementation. We demonstrate that in the equilibrium both players make promises. The latter are partially effective in terms of achieving collusive outcomes and improving the players' payoffs under strategic complementarity, where promises are used to signal future collusive behavior. In contrast, under strategic substitutability the ability to make a promise can be used to signal future aggressive behavior and one of the players may even get a lower expected (before the type is revealed) payoff than in the game without communication.</p>","PeriodicalId":51380,"journal":{"name":"Economic Inquiry","volume":"62 1","pages":"308-328"},"PeriodicalIF":1.8,"publicationDate":"2023-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecin.13178","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44926487","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Pandemic exposure and long-run psychological well-being","authors":"Chao Ma, Yiwei Li, Wenxin Jiang, Xing Zhang","doi":"10.1111/ecin.13176","DOIUrl":"10.1111/ecin.13176","url":null,"abstract":"<p>Using individuals' life history information from a large-scale national survey (<i>N</i> = 13,044), we causally evaluate how exposure to SARS-Cov-1, the first global pandemic in the 21st century, affects long-term psychological well-being. We find that exposure to local pandemic risk, that is, local deaths due to the pandemic, significantly reduced people's mental health 12 years later. Consistent with the belief-based account of depression, exposure to pandemic risk resulted in more pessimistic beliefs about the future and survival probability. People reduced savings and increased hedonic consumption, suggesting a “<i>carpe diem</i>” effect of the pandemic exposure.</p>","PeriodicalId":51380,"journal":{"name":"Economic Inquiry","volume":"62 1","pages":"39-55"},"PeriodicalIF":1.8,"publicationDate":"2023-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43826807","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Sports injuries and game stakes: Concussions in the National Football League","authors":"Pascal Courty, Jeffrey Cisyk","doi":"10.1111/ecin.13173","DOIUrl":"10.1111/ecin.13173","url":null,"abstract":"<p>The National Football League's regular-season games are not of equal importance: some games loom larger than others for determining a team's chance to qualify for the playoffs. We develop an incentive-based measure of the impact of winning a game on a team's qualification probability to study the relationship between stakes and injuries. We find teams are 24 percentage points more likely to suffer concussions in games where a win secures one team a playoff berth. This is the first evidence to support the risk-escalation hypothesis that injuries increase with a competition's stakes. We then discuss implications for sports injury prevention.</p>","PeriodicalId":51380,"journal":{"name":"Economic Inquiry","volume":"62 1","pages":"430-448"},"PeriodicalIF":1.8,"publicationDate":"2023-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecin.13173","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41393190","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A tale of two cities: Communication, innovation, and divergence","authors":"Stefano Magrini, Alessandro Spiganti","doi":"10.1111/ecin.13175","DOIUrl":"10.1111/ecin.13175","url":null,"abstract":"<p>We present a two-area endogenous growth model where abstract knowledge flows at no cost across space but tacit knowledge arises from the interaction among researchers and is hampered by distance. Digital communication reduces this “cost of distance” and reinforces productive specialization, leading to an increase in the system-wide growth rate but at the cost of more inequality within and across areas. These results are consistent with evidences on the rise in the concentration of innovative activities, income inequality, and skills and income divergence across US urban areas.</p>","PeriodicalId":51380,"journal":{"name":"Economic Inquiry","volume":"62 1","pages":"390-413"},"PeriodicalIF":1.8,"publicationDate":"2023-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecin.13175","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136243004","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"State-owned enterprises and entrusted lending: Economic growth and business cycles in China","authors":"Shuonan Zhang","doi":"10.1111/ecin.13174","DOIUrl":"10.1111/ecin.13174","url":null,"abstract":"<p>A key economic structure in China is the co-existence of state-owned enterprises (SOEs) being bank-favored firms as well as policy tools, and more productive private firms who can borrow from SOEs through entrusted lending. We explore macroeconomic implications of such a structure in China. Our findings suggest SOEs dampen output volatility at the cost of productivity volatility. In contrast, the healthy development of entrusted lending dampens variations of both output and productivity by reallocating credits between firms. Focusing on the recent growth slowdown in China, we further show conducive effects of entrusted lending on economic growth by mitigating capital misallocation.</p>","PeriodicalId":51380,"journal":{"name":"Economic Inquiry","volume":"62 1","pages":"197-222"},"PeriodicalIF":1.8,"publicationDate":"2023-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecin.13174","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47203816","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}