Puriya Abbassi, Rajkamal Iyer, José-Luis Peydró and Francesc R. Tous find that banks with higher trading expertise increase their investments in securities and decrease their lending during a crisis.
Giacomo De Giorgi and Michele Pellizzari have been awarded the RES Prize for their paper, “Understanding Social Interactions: Evidence from the Classroom”
Can economic uncertainty make it easier for politicians to implement painful but beneficial reforms? Alessandra Bonfiglioli and Gino Gancia find evidence that indeed this is the case.
Joram Mayshar, Omer Moav, Zvika Neeman and Luigi Pascali find that one consistent difference between farming societies that developed complex hierarchies and those that did not was whether those societies relied on cereal grains or roots and tubers.
Career concerns are particularly relevant in the legal profession since the variance in lawyers’ earnings is large. Moreover, differences in perceived talents are a substantial determinant of the abovementioned variance. Rosa Ferrer studies how career concerns influence effort levels, litigants’ strategic interactions, and the role of the difficulty of the case as a multiplier of the career concerns implicit incentive.
Are American-style megacities or European-style urban networks the best development path for urbanizing countries like China? Can Europe’s relatively smaller cities compete with the world’s megacities by improving the transportation and communication links between them? Edward Glaeser, Giacomo Ponzetto, and Yimei Zou develop a theory of the flow of ideas within and between cities and discuss the factors that may favor consolidation into a dominant megalopolis over the balanced growth of a network of smaller cities.