We study the problem of learning about the effect of one market-level variable (e.g., price) on another (e.g., quantity) in the presence of shocks to unobservables (e.g., preferences). We show that economic intuitions about the plausible size of the shocks can be informative about the parameter...

An individual’s beliefs about whether luck or effort determine how economically successful people are in life (luck/effort beliefs) are central for how she views society. In general, a person who thinks that luck is relatively more important than effort accepts less inequality, wants more...