The American Economic Review is a general-interest economics journal. The journal is published quarterly and contains articles on a broad range of topics. Established in 1911, the AER is among the nation's oldest and most respected scholarly journals in the economics profession.

Publisher: American Economic Association

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Volume 97, Number 2, May 2007

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Foreword

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Foreword
pp. ix-ix(1)
Author: Sargent, Thomas J.

Editors' Introduction

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Editors' Introduction
pp. viii-viii(1)
Authors: DeBlasi, Michelle; Oaxaca, Ronald L.

Articles

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The Economics of Human Development

The Technology of Skill Formation

pp. 31-47(17)
Authors: Cunha, Flavio; Heckman, James

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Testing the Mechanisms of Structural Models: The Case of the Mickey Mantle Effect
pp. 53-59(7)
Authors: Fang, Hanming; Keane, Michael; Khwaja, Ahmed; Salm, Martin; Silverman, Dan

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Bayesian Model Comparison and Validation
pp. 60-64(5)
Author: Geweke, John

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Risk Sharing and Cooperation in Social Networks

Reciprocity in Groups and the Limits to Social Capital

pp. 65-69(5)
Authors: Bloch, Francis; Genicot, Garance; Ray, Debraj

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Risk Sharing across Communities
pp. 70-74(5)
Authors: Bramoullé, Yann; Kranton, Rachel

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Risk Sharing and Network Formation
pp. 75-79(5)
Authors: Fafchamps, Marcel; Gubert, Flore

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Community Size and Network Closure
pp. 80-85(6)
Authors: Allcott, Hunt; Karlan, Dean; Möbius, Markus M.; Rosenblat, Tanya S.; Szeidl, Adam

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Networked Interactions

Communication Networks: Knowledge and Decisions

pp. 86-91(6)
Authors: Calvó-Armengol, Antoni; de Martí, Joan

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Diffusion of Behavior and Equilibrium Properties in Network Games
pp. 92-98(7)
Authors: Jackson, Matthew O.; Yariv, Leeat

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Financial Networks
pp. 99-103(5)
Authors: Gale, Douglas M.; Kariv, Shachar

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The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?
pp. 113-118(6)
Authors: Card, David; Chetty, Raj; Weber, Andrea

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Distinguishing Income from Substitution Effects in Disability Insurance
pp. 119-124(6)
Authors: Autor, David H.; Duggan, Mark G.

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Designing Efficient Mechanisms for Dynamic Bilateral Trading Games
pp. 131-136(6)
Authors: Athey, Susan; Segal, Ilya

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On Quitting Rights in Mechanism Design
pp. 137-141(5)
Authors: Compte, Olivier; Jehiel, Philippe

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Decision Theory: New Methods, New Insights

Neuroeconomic Studies of Impulsivity: Now or Just as Soon as Possible?

pp. 142-147(6)
Authors: William Glimcher, Paul; Kable, Joseph; Louie, Kenway

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The Neuroeconomic Theory of Learning
pp. 148-152(5)
Authors: Caplin, Andrew; Dean, Mark

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Revealing Preferences Graphically: An Old Method Gets a New Tool Kit
pp. 153-158(6)
Authors: Choi, Syngjoo; Fisman, Raymond; Gale, Douglas M.; Kariv, Shachar

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Beliefs in the Utility Function

Optimal Beliefs, Asset Prices, and the Preference for Skewed Returns

pp. 159-165(7)
Authors: Brunnermeier, Markus K.; Gollier, Christian; Parker, Jonathan A.

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Experimental Testing of Intrinsic Preferences for NonInstrumental Information
pp. 166-169(4)
Authors: Eliaz, Kfir; Schotter, Andrew

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Guilt in Games
pp. 170-176(7)
Authors: Battigalli, Pierpaolo; Dufwenberg, Martin

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Incomplete Contracts and Ownership: Some New Thoughts
pp. 182-186(5)
Authors: Hart, Oliver; Moore, John

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Can Contract Theory Explain Social Preferences?
pp. 187-192(6)
Author: MacLeod, Bentley W.

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Search-and-Matching Financial Markets

Liquidity and Risk Management

pp. 193-197(5)
Authors: Gârleanu, Nicolae; Heje Pedersen, Lasse

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Search in Asset Markets: Market Structure, Liquidity, and Welfare
pp. 198-202(5)
Authors: Lagos, Ricardo; Rocheteau, Guillaume

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Information Percolation in Large Markets
pp. 203-209(7)
Authors: Duffie, Darrell; Manso, Gustavo

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Capital Market Frictions

Market Maker Inventories and Stock Prices

pp. 210-214(5)
Authors: Hendershott, Terrence; Seasholes, Mark S.

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Slow Moving Capital
pp. 215-220(6)
Authors: Mitchell, Mark; Heje Pedersen, Lasse; Pulvino, Todd

Foreword

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Systemic Illiquidity in the Federal Funds Market
pp. 221-225(5)
Authors: Ashcraft, Adam B.; Duffie, Darrell

Articles

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Pricing to Habits and the Law of One Price
pp. 232-238(7)
Authors: Ravn, Morten O.; Schmitt-Grohé, Stephanie; Uribe, Martín

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Inaction and Adjustment: Consequences for Households and Firms

Optimal Inattention to the Stock Market

pp. 244-249(6)
Authors: Abel, Andrew B.; Eberly, Janice C.; Panageas, Stavros

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Uncertainty and the Dynamics of R&D
pp. 250-255(6)
Author: Bloom, Nick

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Investment under Uncertainty with Strategic Debt Service
pp. 256-261(6)
Authors: Sundaresan, Suresh; Wang, Neng

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The Political Economy of the US Monetary Union: The Civil War Era as a Watershed
pp. 271-275(5)
Authors: Weiman, David F.; James, John A.

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John Law's System
pp. 276-279(4)
Author: Velde, François R.

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The McKenna Rule and UK World War I Finance
pp. 290-294(5)
Authors: Nason, James M.; Vahey, Shaun P.

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How Occupied France Financed Its Own Exploitation in World War II
pp. 295-299(5)
Authors: Occhino, Filippo; Oosterlinck, Kim; White, Eugene N.

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The Transparency of Political Institutions

The Perils of Transparency in Bureaucracies

pp. 300-305(6)
Authors: Gavazza, Alessandro; Lizzeri, Alessandro

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The Transparency of Politics and the Quality of Politicians
pp. 311-315(5)
Authors: Mattozzi, Andrea; Merlo, Antonio

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Is Foreign Aid Helping?

Aid Effectiveness—Opening the Black Box

pp. 316-321(6)
Authors: Bourguignon, François; Sundberg, Mark

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Does Aid Affect Governance?
pp. 322-327(6)
Authors: Rajan, Raghuram; Subramanian, Arvind

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Was Development Assistance a Mistake?
pp. 328-332(5)
Author: Easterly, William

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Exchange Rate Puzzles

The Returns to Currency Speculation in Emerging Markets

pp. 333-338(6)
Authors: Burnside, Craig; Eichenbaum, Martin; Rebelo, Sergio

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If Exchange Rates Are Random Walks, Then Almost Everything We Say About Monetary Policy Is Wrong
pp. 339-345(7)
Authors: Alvarez, Fernando; Atkeson, Andrew; Kehoe, Patrick J.

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Random Walk Expectations and the Forward Discount Puzzle
pp. 346-350(5)
Authors: Bacchetta, Philippe; van Wincoop, Eric

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New Approaches to International Trade

Unbalanced Trade

pp. 351-355(5)
Authors: Dekle, Robert; Eaton, Jonathan; Kortum, Samuel

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Trade Flow Dynamics with Heterogeneous Firms
pp. 356-361(6)
Authors: Ghironi, Fabio; Melitz, Marc J.

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Pricing-to-Market in a Ricardian Model of International Trade
pp. 362-367(6)
Authors: Atkeson, Andrew; Burstein, Ariel

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The Effects of Recent Immigration on Racial/Ethnic Labor Market Differentials
pp. 373-377(5)
Authors: Reed, Deborah; Danziger, Sheldon

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Inward Foreign Direct Investment and Racial Employment Patterns in US Manufacturing
pp. 378-382(5)
Authors: Gelan, Abera; Husbands Fealing, Kaye; Peoples, James

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Differential Impacts of Immigrants on Native Black and White Workers
pp. 383-387(5)
Authors: Ong, Paul; Mar, Don

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Public Education Expenditures, Taxation, and Growth: Linking Data to Theory
pp. 393-397(5)
Authors: Blankenau, William F.; Simpson, Nicole B.; Tomljanovich, Marc

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Why Do Poor Children Lose Health Insurance in the SCHIP Era? The Role of Family Health
pp. 398-401(4)
Authors: Carroll, Anne; Corman, Hope; Noonan, Kelly; Reichman, Nancy E.

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Gender Differences in the Labor Market: Impact of IRCA's Amnesty Provisions
pp. 412-416(5)
Authors: Amuedo-Dorantes, Catalina; Bansak, Cynthia; Raphael, Steven

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The Role of Labor Market Intermittency in Explaining Gender Wage Differentials
pp. 417-421(5)
Authors: Hotchkiss, Julie L.; Pitts, Melinda M.

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Social Value and the Speed of Innovation
pp. 433-437(5)
Authors: Murphy, Kevin M.; Topel, Robert H.

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An Estimable Dynamic Model of Entry, Exit, and Growth in Oligopoly Retail Markets
pp. 449-454(6)
Authors: Aguirregabiria, Victor; Mira, Pedro; Roman, Hernan

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Bounding Revenue Comparisons across Multi-Unit Auction Formats under -Best Response
pp. 455-458(4)
Authors: Chapman, James T. E.; McAdams, David; Paarsch, Harry J.

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Linear Regression Estimation of Discrete Choice Models with Nonparametric Distributions of Random Coefficients
pp. 459-463(5)
Authors: Bajari, Patrick; Fox, Jeremy T.; Ryan, Stephen P.

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Welfare without Happiness
pp. 471-476(6)
Authors: Gul, Faruk; Pesendorfer, Wolfgang

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Mistakes in Choice-Based Welfare Analysis
pp. 477-481(5)
Authors: Kőszegi, Botond; Rabin, Matthew

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Habits, Peers, and Happiness: An Evolutionary Perspective
pp. 487-491(5)
Authors: Rayo, Luis; Becker, Gary S.

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Why Do We Die? Economics, Biology, and Aging
pp. 492-495(4)
Authors: Robson, Arthur J.; Kaplan, Hillard S.

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The Evolution of Intertemporal Preferences
pp. 496-500(5)
Authors: Robson, Arthur J.; Samuelson, Larry

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The Search for Economics Talent: Doctoral Completion and Research Productivity
pp. 506-511(6)
Authors: Grove, Wayne A.; Wu, Stephen

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What Does Performance in Graduate School Predict? Graduate Economics Education and Student Outcomes
pp. 512-518(7)
Authors: Athey, Susan; Katz, Lawrence F.; Krueger, Alan B.; Levitt, Steven; Poterba, James

Miscellany

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Minutes of the Annual Meeting Chicago, IL January 6, 2007
pp. 523-524(2)
Author: Siegfried, John J.

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Minutes of the Executive Committee Meetings
pp. 525-533(9)
Author: Siegfried, John J.

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Report of the Secretary for 2006
pp. 534-537(4)
Author: Siegfried, John J.

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Report of the Treasurer
pp. 538-541(4)
Author: Siegfried, John J.

Articles

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Report of the Editor

American Economic Review

pp. 542-554(13)
Author: Moffitt, Robert A.

Miscellany

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Report of the Editor

Journal of Economic Literature

pp. 555-557(3)
Author: Gordon, Roger

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Report of the Editor

Journal of Economic Perspectives

pp. 558-559(2)
Author: Shleifer, Andrei

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Report of the Director

Job Openings for Economists

pp. 560-562(3)
Author: Siegfried, John J.

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Report of the Committee on Economic Education
pp. 563-565(3)
Author: Watts, Michael

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American Economic Association Universal Academic Questionnaire Summary Statistics
pp. 588-591(4)
Authors: Scott, Charles E.; Siegfried, John J.

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