We propose a generalization of the synthetic control method to a multiple-outcome framework, which improves the reliability of treatment effect estimation. This is done by supplementing the conventional pre-treatment time dimension with the extra dimension of related outcomes in computing the...

We examine a novel hypothesis that roots human prosociality in the need to elicit and sustain help from others for the purpose of raising children, i.e. allomaternal care. We design an economic experiment to characterize the relationship between allomaternal care and cooperative behavior among a...

The future impact of climate change on the world economy is a topic of great importance and uncertainty. Previous models predict only mild aggregate damages and that some countries will be unaffected or may even benefit. This article demonstrates that these results rely on the restrictive...

This paper proposes a novel method to estimate productivity and quality at the firm-product level, together with transformation function and demand parameters. The method relies on firm optimization conditions to obtain a one-to-one mapping between observed data and unobserved productivity and...

We propose a mechanism linking legislative gridlock to voters’ support for candidates who hold extreme policy positions. Moderate voters rationally discount extreme pol- icy proposals from co-partisans on gridlocked policy issues because on these issues policy change is unlikely. We test our...

We study a model of popular demand for anti-elite populist reforms that drain the swamp: replace experienced public servants with novices that will only acquire experience with time. Voters benefit from experienced public servants because they are more effective at delivering public goods and...

This paper constructs a new game—the “rule-the-roost game”—where players compete repeatedly for power (“chickens”) and wealth (“eggs”) in the laboratory. We find that a vicious circle develops where the powerful accumulate more power and wealth over time, leading to substantial...

2SLS has poor properties if instruments are exogenous but weak. But how strong must instruments be for 2SLS estimates and test statistics to exhibit acceptable properties? A common standard is a first-stage F ≥ 10. This is adequate to ensure two- tailed t-tests have small size distortions. But...

Definitions of output and input are key to studies of productivity analysis, as they are to the national accounts of countries. This paper systematically reviews alternative definitions at production unit and aggregate levels, illustrating the different perspectives that they provide on...

We report results from a field experiment on cultural context in standardized tests among 6th- and 8th-grade school students in Australia. The National Assessment Program Literacy and Numeracy (NAPLAN) is a series of basic-skills tests given to Australian students. In our experiment, 1135...