Using a representative sample of children all born to unwed parents drawn from the Fragile Families and Child Wellbeing Study and a potential outcome approach to account for self-selection into marriage, we investigate whether marriage after childbearing has a causal effect on early child...

We report a market experiment that examines the capacity of price and information frictions to explain real responses to nominal price shocks. As predicted by the standard dynamic adjustment models, we find that both price and information frictions impede the response to a nominal shock. We also...

We investigate how household disadvantage affects the time use of 15-18 year-olds using 2003- 2006 data from the American Time Use Survey. Applying competing-risk hazard models, we distinguish between the incidence and duration of activities and incorporate the daily time constraint. We find...

This paper reports an experiment conducted to assess the effects of alterations in production conditions and product durability on market power in Bertrand-Edgeworth duopolies. Experiment results indicate that advance production increases market power in the sense that mean transaction prices...

In this paper, we study the stationary and non-stationary equilibria of a de- terministic, pure exchange, two-period overlapping generations model with habit persistence. We show that preferences with multiplicative habits can lead to quite different equilibrium outcomes compared to subtractive...

This study examines the potential causal effect of parental divorce on child educational attainments, using annual data on individuals covering the entire time span between birth until the completion of ones schooling drawn from the Panel Study of Income Dynamics (PSID). A joint hazard model of...

This paper develops a model of political contributions in which a politician can either sell policy favors, or sell access. Access allows interest groups to share hard information with the politician in support of their preferred policy. Here selling access maximizes policy utility, while...

There is a debate on whether executive pay reflects rent extraction due to “managerial power” or is the result of arms-length bargaining in a principal-agent framework. In this paper we offer a test of the managerial power hypothesis by empirically examining the CEO compensation of U.S....

This paper studies first–order differentiability properties of the value function in concave dynamic programs. Motivated by economic considerations, we dispense with commonly imposed interiority assumptions. We suppose that the correspondence of feasible choices varies with the vector of state...

An important goal in the analysis of the causal effect of a treatment on an outcome is to understand the mechanisms through which the treatment causally works. In the economics literature, however, there seems to be no available framework to estimate the relative importance of different causal...