AEA Research Highlights
Business & Finance
About
A podcast featuring interviews with economists whose work appears in journals published by the American Economic Association.
Episodes
- Ep. 99: The wrong side of the tracks
The place where a child grows up in America shapes their economic future to a significant degree . One long-suspected explanation is racial segregation, but proving whether segregation actually causes worse outcomes—rather than just correl…
- Ep. 98: Delivering clean water
More than two billion people around the world do not have safe drinking water at home. Piped water infrastructure remains out of reach for much of the developing world, and cheaper alternatives like chlorine tablets have low take-up rates…
- Ep. 97: A short history of Asian immigration
Asian Americans are the fastest-growing racial group in the United States and are on track to become the largest immigrant group by 2050. Yet, researchers have devoted much less attention to this population than to other immigrant groups.…
- Ep. 96: W. E. B. Du Bois and the history of marginalism
W. E. B. Du Bois is remembered as a civil rights leader, sociologist, and author of The Souls of Black Folk. But before he became famous for his empirical studies of Black life in America, Du Bois was a graduate student at Harvard studying…
- Ep. 95: Diversifying college applications
Guidance counselors generally advise college applicants to diversify their applications across schools they believe to be safeties, matches, and reaches. Yet, prevailing economic theories of school choice suggest that such hedging strategi…
- Ep. 94: Targeted supply-side enforcement in the controlled substance market
Between 1997 and 2011, opioid dispensing in the United States more than tripled, fueling what would become the deadliest drug epidemic in American history. This surge in the supply of opioids was concentrated among a small subset of doctor…
- Ep. 93: Technological spillovers
The launch of Sputnik by the Soviet Union in October 1957 led to a geopolitical crisis that reshaped American science policy. Within months, Congress established NASA, and by 1961, President Kennedy committed the nation to landing a man on…
- Ep. 92: Housing supply skepticism
Most Americans agree that housing costs are too high, often blaming developers and landlords. Many feel that the problem can be solved with price controls, development restrictions, and mandates on providing below-market-rate units. But th…
- Ep. 91: Reviewing residential segregation
Despite decades of civil rights legislation, many Black and White Americans, as well as other minorities, continue to live in racially homogeneous neighborhoods, with significant implications for access to quality schools, jobs, healthcare…
- Ep. 90: Understanding the US net foreign asset position
For decades, the United States enjoyed what some called an exorbitant privilege—the ability to spend more than it earned without accumulating much debt to the rest of the world. But that privilege has ended. In a paper in the American Econ…
- Ep. 89: Measuring US income inequality
US household income has grown significantly, but much of that growth seems to be at the very top of the distribution. Just how much inequality has increased and why it is growing is a topic of debate among economists. Part of the challenge…
- Ep. 88: Understanding international approaches to drug pricing
Drug prices have become a hot-button issue in the United States, with politicians across the spectrum agreeing that American consumers pay too much for prescription medications. But bringing down drug prices raises fundamental economic cha…
- Ep. 87: The cultural roots of rebellion
Civil conflict has plagued much of Africa, with ethnically diverse countries experiencing particularly high rates of violence. Yet within these nations, patterns vary, leading to questions of why some groups rebel while others do not and w…
- Ep. 86: Reexamining air quality regulations
The Clean Air Act has been an essential tool for reducing air pollution in the United States. But standard estimation methods may overstate its impact, according to a paper in the American Economic Journal: Economic Policy . Authors Lutz S…
- Ep. 85: America's public safety net
The patchwork nature of America's public safety net has evolved over centuries, shaped by political winds and changing views on poverty. Understanding this complicated history may help shed light on the core tensions that continue to defin…
- Ep. 84: Media salience and polarization
- Ep. 83: The returns to industrial policy
Between 2006 and 2013, China's government poured enormous resources into its shipbuilding industry through various subsidies—from providing free coastal land to offering financing assistance for ship buyers. But estimating the true scale a…
- Ep. 82: Service quality in the financial advisory industry
A growing number of US households hire advisers to assist with major financial decisions, such as planning life events or making portfolio choices for retirement. But some advisers exploit the inherent complexity of these decisions and the…
- Ep. 81: Assessing the Effects of the 2017 Tax Cut and Jobs Act
In 2017, then-President Trump signed into law the Tax Cut and Jobs Act, which was arguably the largest corporate tax cut in US history. The TCJA significantly lowered the statutory rate that corporations pay in taxes and reshaped numerous…
- Ep. 80: Agricultural productivity and chronic disease
A half a century ago, new high-yield varieties of crops were introduced to India, and it transformed the country's farming. This so-called "Green Revolution" significantly boosted agricultural output, allaying concerns about famine and foo…
- Ep. 79: Social organization and redistribution
Qualitative accounts of anthropologists indicate that social structure plays an important role in how resources are shared in society. But quantitative evidence measuring the impacts of social organization on financial ties and transfers h…
- Ep. 78: Broader economic impacts of the Paycheck Protection Program
The Paycheck Protection Program (PPP) was launched at the height of the COVID-19 pandemic in the hopes that it would keep businesses from laying off workers during government shutdown measures taken to contain the spread of the disease. In…
- Ep. 77: The political power of historical narratives
In 2005, Austria's most prominent far-right party proclaimed a "Third Turkish Siege of Vienna." The campaign warned voters that, like their ancestors who were almost overrun by the Ottoman Empire four centuries ago, they were being cultura…
- Ep. 76: The political consequences of NAFTA
In 1993, the North American Free Trade Agreement (NAFTA) was passed with bipartisan support and near universal endorsement by economists. In hindsight, the economic costs and political consequences were far greater than many contemporary o…
- Ep. 75: Moral hazard and migration
Since 2014, over 15,000 migrants have died or gone missing trying to make the voyage from the north coast of Africa to southern Europe. In response, European authorities have launched several search and rescue operations. There are few sig…
- Ep. 74: The pace of economics publishing
Timely publication of research in peer-reviewed journals is critical for economists seeking tenure and important for audiences looking for high-quality, trustworthy studies. But in recent decades, there has been an increasing concern that…
- Ep. 73: Improving vaccine messaging
The COVID-19 pandemic highlighted the importance of vaccines, but it also underscored the reservations and low take-up rates among US citizens. In a paper in the American Economic Journal: Economic Policy , authors Marcella Alsan and Sarah…
- Ep. 72: A textbook bank run
In the middle of the day on Friday, March 10, 2023, bank regulators swiftly shut down Silicon Valley Bank (SVB), arguably averting a wider panic. Compared to past financial crises, it was not especially economically significant, but it sta…
- Ep. 71: The roots of US innovation clusters
Before Silicon Valley became a byword for innovation, Route 128 , outside of Boston, was America's technology highway, connecting the country's premier technology companies and research facilities. However, this first American high-tech cl…
- Ep. 70: Counselors matter
Numerous studies have highlighted the importance of effective teachers for student achievement. But new research suggests that school counselors may be just as critical as teaching staff for some students. In a paper in the American Econom…
- Ep. 69: Testing two theories of the origin of government
Some social scientists have postulated that governments are designed for the purpose of helping the powerful take resources from the less powerful. But while there have been many exploitative governments throughout history, states may have…
- Ep. 68: Ending school segregation for Mexican Americans
Seven years before the 1954 Brown v. Board of Education decision ended the legal segregation of Black schoolchildren, California ended the legal segregation of Mexican American schoolchildren. That decision, known as Mendez v. Westminster,…
- Ep. 67: Learning the language
The bulk of education research focuses on the benefits of the traditional K–12 and higher education systems, while non-traditional programs are relatively understudied. But economists are starting to shine a light on the large returns to i…
- Ep. 66: Transitional housing and recidivism
The United States spends over a billion dollars a year on housing programs that give recently released prisoners a place to stay and modest support before reintegration into society. Yet there is little causal evidence that these programs…
- Ep. 65: Economic questions raised by Alzheimer's disease
The costs of Alzheimer's disease are significant. In 2021, it affected nearly 6 million Americans and accounted for an estimated 8 percent of total US health-care spending—about as much as cancer and heart disease combined. And those numbe…
- Ep. 64: Reconceptualizing the path to universal health insurance
For decades US policymakers have tried to achieve the universal health insurance coverage that many other developed countries enjoy. But despite incremental reforms, based on tweaking health insurance markets, America's uninsured populatio…
- Ep. 63: Gender bias in bank lending
Around the world, female entrepreneurs borrow less than their male counterparts. Many people suggest that the reason for this gap comes down to the fact that women select into less capital-intensive industries. But in a paper in the Americ…
- Ep. 62: The importance of local activism
A wave of political demonstrations in recent years has grabbed headlines and helped to reshape the political landscape. But it's an open question as to whether these protest movements actually change opinions in the long run. In a paper in…
- Ep. 61: Market design and live events
Fans have frequently experienced the frustration of event tickets selling out in a matter of minutes and then being resold for twice as much or more. This combination of underpriced tickets in the primary market and rent-seeking speculatio…
- Ep. 60: Graduate school and mental health
Graduate school should be about learning how to push the frontiers of knowledge. Many students, however, also learn that getting a PhD can push them into emotional and psychological trouble. In a paper in the Journal of Economic Literature…
- Ep. 59: Mental health therapy in the developing world
Cognitive behavioral therapy (CBT) is a form of counseling designed to change unhelpful patterns of thinking. A strong, evidence-based track record has led to its widespread use in high-income countries. But it may also be an important too…
- Ep. 58: How good is popular financial advice?
When most Americans look for financial advice, they don't turn to academic journals for guidance. Instead, they're likely to get information from financial personalities like Dave Ramsey or Robert Kiyosaki, whose books have sold millions o…
- Ep. 57: The costs of cultural traditions
Religion is a deep source of tradition and meaning for many people around the world, especially those in developing countries. But religious practices can sometimes stand in the way of long-term economic growth, according to a paper in the…
- Ep. 56: Fundraising Appeals and the Lift/Shift Question
Major charity appeals can bring in hundreds of millions of dollars. But many worry that these efforts shift money away from other charities or merely move donations forward in time. In a paper in the American Economic Journal: Economic Pol…
- Ep. 55: School bullying, cyberbullying, and remote learning
The pandemic has taken a toll on the education system. School enrollment has decreased, teacher turnover has ticked up, and students have experienced substantial learning losses . But there is at least one silver lining, according to a pap…
- Ep. 54: Protecting vulnerable kids
Every year, hundreds of thousands of kids enter the US foster care system. And yet, improving their welfare remains an understudied topic among economists, according to a paper in the Journal of Economic Perspectives . Authors Anthony Bald…
- Ep. 53: Grade inflation and graduation
From the 1970s to the 1990s, the share of students leaving college with a degree steadily declined. But according to a paper in the American Economic Journal: Applied Economics , the trend since then has taken a turn for the better. Author…
- Ep. 52: Just what the doctor ordered?
In the 1990s, drug manufacturers began marketing their products directly to consumers. Since then, prescription drug advertising has become a multibillion dollar industry, and some have worried that it might be getting between patients and…
- Ep. 51: The returns to an economics degree
Publicly available statistics on career earnings show that an economics degree pays far more on the job market than degrees in other social sciences. But it's not clear that those higher salaries reveal the true returns to studying the dis…
- Ep. 50: Comparing 911 responses
Black Lives Matter protests have put a spotlight on police abuses since 2014, but it has been challenging for researchers to assess the impact of race from the available data. In a paper in the American Economic Review , authors Mark Hoeks…