Review of Economic Studies (Rev Econ Stud)
A Leader in its Field Founded in 1933 by a group of young British and American economists The Review of Economic Studies aims to encourage research in theoretical and applied economics especially by young economists. Today it is one of the core economics journals ranking consistently among the top half dozen titles. The Review of Economic Studies is essential reading. It includes articles from well-established specialists and young research scholars as well as having a reputation for publishing path-breaking papers in theoretical and applied economics. Click here for more information on The Review of Economic Studies Back issues are available electronically from JSTOR.
Current impact factor: 2.81
Impact Factor Rankings
|Website||Review of Economic Studies, The website|
|Document type||Computer File, Journal / Magazine / Newspaper|
- Author can archive a pre-print version
- Author cannot archive a post-print version
- 2 years embargo after first online publication
- Author's pre-print can only be posted prior to acceptance
- Author's pre-print must be accompanied by set statement (see link)
- Author's pre-print must not be replaced with post-print, instead a link to published version with amended set statement should be made
- Author's pre-print on author's personal website, employer website, free public server or pre-prints in subject area
- Author's post-print in Institutional repositories or central repositories
- Published source must be acknowledged
- Must link to publisher version
- Set phrase to accompany archived copy (see policy)
- Authors covered by funding agency rules, may post author's post-print after a 12 months embargo after first online publication
- This policy is an exception to the default policies of 'Oxford University Press (OUP)'
Publications in this journal
- [Show abstract] [Hide abstract] ABSTRACT: I extend the Epstein-Zin-lognormal consumption-based asset-pricing model to allow for generali.i.d. consumption growth. Information about the higher moments-equivalently, cumulants-ofconsumptiongrowth is encoded in the cumulant-generating function. I use the framework to analyse economieswith rare disasters, and argue that the importance of such disasters is a double-edged sword: parameters that govern the frequency and sizes of rare disasters are critically important for asset pricing, but extremely hard to calibrate. I show how to sidestep this issueby using observable asset prices to make inferences without having to estimate higher moments of the underlying consumption process. Extensions of the model allow consumption to diverge from dividends, and for non-i.i.d. consumption growth. © The Author 2012. Published by Oxford University Press on behalf of The Review of Economic Studies Limited.
Article: inventories, markups
- [Show abstract] [Hide abstract] ABSTRACT: We explore how allowing votes to be traded separately of shares may affect the efficiency of corporate control contests. Our basic set-up and the nature of the questions continue the work of Grossman and Hart (1980),Harris and Raviv (1988), and Blair, Golbe and Gerard (1989). We consider three cases with respect to the allowable price offers (for shares and for votes when they can be traded separately): unrestricted price offers, quantity-restricted price offers, and price offers contingent on winning. Our main results are characterizations of the equilibria and of the circumstances under which vote buying is harmful. We show that allowing votes to be traded separately of shares results in inefficiencies in all the cases we study. Similarly allowing quantity-restricted offers is also harmful, but allowing conditional offers is not in itself detrimental to efficiency. The paper also makes a methodological contribution to the analysis of takeover games with atomless shareholders. It provides a way of dealing with asymmetric equilibria that must be dealt with for a complete analysis and it proves existence of an equilibrium. Copyright 2012, Oxford University Press.
Article: Learning from a Piece of Pie[Show abstract] [Hide abstract] ABSTRACT: We investigate the empirical content of the Nash solution to two-player bargaining games. The bargaining environment is described by a set of variables that may affect agents' preferences over the agreement sharing, the status quo outcome, or both. The outcomes (i.e. whether an agreement is reached, and if so the individual shares) and the environment (including the size of the pie) are known, but neither are the agents' utilities nor their threat points. We consider both a deterministic version of the model in which the econometrician observes the shares as deterministic functions of the variables under consideration and a stochastic one in which because of latent disturbances only the joint distribution of incomes and outcomes is recorded. We show that in the most general framework any outcome can be rationalized as a Nash solution. However, even mild exclusion restrictions generate strong implications that can be used to test the Nash bargaining assumption. Stronger conditions further allow to recover the underlying structure of the bargaining, and in particular, the cardinal representation of individual preferences in the absence of uncertainty. An implication of this finding is that empirical works entailing Nash bargaining could (and should) use much more general and robust versions than they usually do. Copyright 2012, Oxford University Press.
- [Show abstract] [Hide abstract] ABSTRACT: This paper examines the dynamic implications of social networks for the labour market outcomes of refugees resettled in the U.S. A theoretical model of job information transmission shows that the relationship between social network size and labour market outcomes is heterogeneous and depends on the vintage of network members: an increase in network size can negatively impact some cohorts in a network while benefiting others. To test this prediction, I use new data on political refugees resettled in the U.S. and exploit the fact that these refugees are distributed across cities by a resettlement agency, precluding individuals from sorting. The results indicate that an increase in the number of social network members resettled in the same year or one year prior to a new arrival leads to a deterioration of outcomes, while a greater number of tenured network members improves the probability of employment and raises the hourly wage.
- [Show abstract] [Hide abstract] ABSTRACT: Drawing on uncommonly rich and representative data from the Colombian manufacturing census, this paper documents new empirical relationships between input prices, output prices, and plant size and proposes a model of endogenous input and output quality choices by heterogeneous firms to explain the observed patterns. The key empirical facts are that, on average within narrowly defined sectors, (1) larger plants charge more for their outputs and (2) larger plants pay more for their material inputs. The latter fact generalizes the well-known positive correlation between plant size and wages. Similar correlations hold between prices and export status. We show that the empirical patterns are consistent with a parsimonious extension of the Melitz (2003 , "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, 71, 1695--1725) framework to include endogenous choice of input and output quality. Using a measure of the scope for quality differentiation from Sutton (1998 , Technology and Market Structure: Theory and History. Cambridge: MIT Press), we show that differences across sectors in the relationships between prices and plant size are consistent with our model. Available evidence suggests that differences in observable measures of market power do not provide a complete explanation for the empirical patterns. We interpret the results as supportive of the hypothesis that quality differences of both inputs and outputs play an important role in generating the price--plant size correlations. Copyright 2012, Oxford University Press.
- [Show abstract] [Hide abstract] ABSTRACT: We study dynamic incentives and behaviour in markets with costly discovery of past transactions. In our model, a sequence of short-lived customers interact over time with a single long-lived firm that privately knows its type (good or opportunistic). Customers must pay to observe the firm's past behaviour. We characterize the equilibrium structure that features accumulation, consumption, and restoration of reputation. The opportunistic firm deliberately builds its reputation up to a point where the maximum periods of information acquired by customers do not reveal past opportunistic behaviour and exploits the customers who most trust the firm.
- [Show abstract] [Hide abstract] ABSTRACT: In this paper I derive a sucient condition for a numeri-cally computed -equilibrium of a dynamic stochastic economy with heterogeneous agents to be close to an exact equilibrium. If the economic fundamentals are semi-algebraic, one can verify computationally whether this condition holds. The condition can be interpreted economically as a robustness requirement on the set of -equilibria that form a neighborhood of the computed approximation. I use this method of 'self-validating computation' to prove that in realistically calibrated stochastic overlapping generation models, competitive equilibria can often be extremely well approximated by cubic functions, mapping the current shock and the beginning-of-period wealth-distribution to current endogenous variables.
- [Show abstract] [Hide abstract] ABSTRACT: I present a sticky-wage model of exchange rate pass-through with heterogeneous producers and endogenous markups. The model shows that low levels of exchange rate pass-through to firm- and aggregate-level import prices coexist with large movements in trade flows. After an exchange rate shock, aggregate import prices are subject to a composition bias due to changes in the extensive margin of trade (the number of goods traded between countries). At the firm level, each producer adjusts its markups depending on its own productivity and the change in the competitive environment generated by the exchange rate movement. Firm-level price responses are asymmetric—different for appreciations and depreciations—and adjustments in the intensive margin of trade (firm-level exports) are substantial. In general equilibrium, the model shows that firm reallocations increase the persistence of exogenous shocks.
- [Show abstract] [Hide abstract] ABSTRACT: The “new classical” theory states that families in low-skill occupations with low levels of human capital can stay poor from one generation to the next, while families in high-skill occupations with correspondingly high levels of human capital stay wealthy, despite being endowed with the same level of ability on average. This paper proposes an informal institutional mechanism—the community-based network—through which families belonging to the same neighbourhood or kinship group can bootstrap their way out of such low-skill occupational traps. The insight from the dynamic model that is developed is that once they form, new networks providing mutual support to their members and substituting for inherited parental human capital and wealth will strengthen most rapidly in historically disadvantaged communities, generating a correspondingly high level of intergenerational mobility. These predictions are successfully tested using unique data from India. The analysis in this paper, coupled with an emerging empirical literature on networks and migration, provides a new perspective on mobility in developing countries, with restrictive traditional networks decaying even as new networks supporting collective mobility form and strengthen over time.
- [Show abstract] [Hide abstract] ABSTRACT: I examine a model of a uniform price auction of a perfectly divisible good with private information in which the bidders submit discrete bidpoints rather than continuous downward sloping demand functions. I characterize necessary conditions for equilibrium bidding. The characterization reveals a close relationship between bidding in multiunit auctions and oligopolistic behaviour. I demonstrate that a recently proposed indirect approach to the revenue comparisons of discriminatory and uniform price auctions is not valid if bid functions have steps. In particular, bidders may bid above their marginal valuation in a uniform price auction. In order to demonstrate that discrete bidding can have important consequences for empirical analysis I use my model to examine a data set consisting of individual bids in uniform price treasury auctions of the Czech government. I propose an alternative method for evaluating the performance of the employed mechanism. My results suggest that the uniform price auction performs well, both in terms of efficiency of the allocation and in terms of revenue maximization. I estimate that the employed mechanism failed to extract at most 3 basis points in terms of the annual yield of T-bills worth of expected surplus while implementing an allocation resulting in almost all the efficient surplus. Failing to account for discreteness of bids would in my application result in overestimating the unextracted revenue by more than 50%. Copyright 2011, Oxford University Press.
Data provided are for informational purposes only. Although carefully collected, accuracy cannot be guaranteed. The impact factor represents a rough estimation of the journal's impact factor and does not reflect the actual current impact factor. Publisher conditions are provided by RoMEO. Differing provisions from the publisher's actual policy or licence agreement may be applicable.