The recent recession has brought fiscal policy back to the forefront, with economists and policy makers struggling to reach a consensus on highly political issues like tax rates and government spending. At the heart of the debate are fiscal multipliers, whose size and sensitivity determine the...

If individuals become aware of their stereotypes, do they change their behavior? We study this question in the context of teachers' bias in grading immigrants and native children in middle schools. Teachers give lower grades to immigrant students compared to natives who have the same performance...

One commonly held view about the difference between continental European countries and other OECD countries, especially the United States, is that the heavy regulation of Europe reduces its growth. Using newly assembled data on regulation in several sectors of many OECD countries, we provide...

Intro -- Preface -- Introduction -- 1 Europe and the United States: Two Different Social Models -- 2 Handling a Multiethnic Society -- 3 Americans at Work, Europeans on Holiday -- 4 Job Security, Job Regulations, and 14 Million Unemployed -- 5 Technology, Research, and Universities -- 6...