Table Of Content

CONTENTS FOR VOLUME CIX AUTHORS AGHION, PHILIPPE, AND JEAN TIROLE. The Management of Innovation AryaGarI, S. Rao. Uninsured Idiosyncratic Risk and Aggregate Saving ALESINA, ALBERTO, AND DANI Roprik. Distributive Politics and Economic Growth . ANDERLINI, LUCA, AND LEONARDO FELLI. Incomplete Written Contracts: Undescrib- able States of Nature ASQUITH, PAUL, ROBERT GERTNER, AND DAVID SCHARFSTEIN. Anatomy of Financial Distress: An Examination of Junk Bond Issuers AUERBACH, ALAN J., Kevin A. HASSETT, AND STEPHEN D. OLINER. Reassessing the Social Returns to Equipment Investment BAKER, GEORGE, MICHAEL GIBBS, AND BENGT HOLMSTROM. The Internal Economics of the Firm: Evidence from Personnel Data BAKER, GEORGE, MICHAEL GIBBS, AND BENGT HOLMSTROM. The Wage Policy of a Firm BAKER, GEORGE, ROBERT GIBBONS, AND KEVIN J. MURPHY. Subjective Performance Measures in Optimal Incentive Contracts BANERJEE, ABHIJIT V., TIMOTHY BESLEY, AND TIMOTHY W. GUINNANE. Thy Neigh- bor’s Keeper: The Design of a Credit Cooperative with Theory and a Test BarSKY, ROBERT, GARY SOLON, AND JONATHAN A. PARKER. Measuring the Cyclical- ity of Real Wages: How Important Is Composition Bias? ..................ss0seeeees BEBCHUK, LUCIAN ARYE. Efficient and Inefficient Sales of Corporate Control BERGLOF, ERIK, AND ERNST-LUDWIG VON THADDEN. Short-Term versus Long-Term Interests: Capital Structure with Multiple Investors BERMAN, ELI, JOHN BOUND, AND ZVI GRILICHES. Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures BESLEY, TIMOTHY, ABHIJIT V. BANERJEE, AND TIMOTHY W. GUINNANE. Thy Neigh- bor’s Keeper: The Design of a Credit Cooperative with Theory and a Test BoaL, WILLIAM M., AND JOHN PENCAVEL. The Effects of Labor Unions on Employ- ment, Wages, and Days of Operation: Coal Mining in West Virginia BOLTON, PATRICK, AND MATHIAS DEWATRIPONT. The Firm as a Communication Network BOUND, JOHN, ELI BERMAN, AND ZVI GRILICHES. Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures BRESNAHAN, TIMOTHY F., AND VALERIE A. RAMEY. Output Fluctuations at the Plant BUTCHER, KRISTIN F., AND ANNE CASE. The Effect of Sibling Sex Composition on Women’s Education and Earnings CARROLL, CHRISTOPHER D. How Does Future Income Affect Current Consump- IIE sscs tsinnehlaate lisiisnicinssnenisonicnstiitaibisiinadsabilbantiabaiiahteianansinitsinnmcnamiaaehidmaiapiion CARROLL, CHRISTOPHER D., BYUNG-KUN RHEE, AND CHANGYONG RHEE. Are There Cultural Effects on Saving? Some Cross-Sectional Evidence CaSsE, ANNE, AND KRISTiN F. BUTCHER. The Effect of Sibling Sex Composition on Women’s Education and Earnings COCHRANE, JOHN H. Permanent and Transitory Components of GNP and Stock Prices COPELAND, BRIAN R., AND M. Scott TayLor. North-South Trade and the Environ- vi CONTENTS FOR VOLUME CIX DE LONG, J. BRADFORD, AND LAWRENCE H. SUMMERS. Equipment Investment and Economic Growth: Reply DEVEREUX, MICHAEL B., AND BEVERLY J. LAPHAM. The Stability of Economic Integration and Endogenous Growth DEWATRIPONT, MATHIAS, AND JEAN TIROLE. A Theory of Debt and Equity: Diversity of Securities and Manager-Shareholder Congruence DEWATRIPONT, MATHIAS, AND PATRICK BOLTON. The Firm as a Communication DRAZEN, ALLAN, AND PAUL R. MAsson. Credibility of Policies versus Credibility of Policymakers EvANS, WILLIAM N., AND IOANNIS N. KEssIDES. Living by the “‘Golden Rule’’: Multimarket Contact in the U. S. Airline Industry FELLI, LEONARDO, AND LUCA ANDERLINI. Incomplete Written Contracts: Undescrib- able States of Nature FRANKEL, JEFFREY A., AND CarA S. Lown. An Indicator of Future Inflation Extracted from the Steepness of the Interest Rate Yield Curve Along Its Entire Length GERTLER, MARK, AND SIMON GILCHRIST. Monetary Policy, Business Cycles, and the Behavior of Small Manufacturing Firms GERTNER, ROBERT H., DAvip S. SCHARFSTEIN, AND JEREMY C. STEIN. Internal versus External Capital Markets GERTNER, ROBERT, PAUL ASQUITH, AND DAVID SCHARFSTEIN. Anatomy of Financial Distress: An Examination of Junk Bond Issuers GIBBONS, ROBERT, GEORGE BAKER, AND KEVIN J. MURPHY. Subjective Performance Measures in Optimal Incentive Contracts GiBBs, MICHAEL, GEORGE BAKER, AND BENGT HOLMSTROM. The Internal Economics of the Firm: Evidence from Personnel Data GiBes, MICHAEL, GEORGE BAKER, AND BENGT HOLMSTROM. The Wage Policy of a GILCHRIST, SIMON, AND MARK GERTLER. Monetary Policy, Business Cycles, and the Behavior of Small Manufacturing Firms GRILICHES, ZVI, JOHN BOUND, AND ELI BERMAN. Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures GROVES, THEODORE, YONGMIAO HONG, JOHN MCMILLAN, AND BARRY NAUGHTON. Autonomy and Incentives in Chinese State Enterprises GRUBER, JONATHAN, AND JAMES POTERBA. Tax Incentives and the Decision to Purchase Health Insurance: Evidence from the Self-Employed GUINNANE, TIMOTHY W., ABHIJIT V. BANERJEE, AND TIMOTHY BESLEY. Thy Neigh- bor’s Keeper: The Design of a Credit Cooperative with Theory and a Test Hart, OLIVER, AND JOHN Moore. A Theory of Debt Based on the Inalienability of Human Capital HASSETT, KEVIN A., ALAN J. AUERBACH, AND STEPHEN D. OLINER. Reassessing the Social Returns to Equipment Investment HINES, JR., JAMES R., AND Eric M. RIcE. Fiscal Paradise: Foreign Tax Havens and American Business HOLMSTROM, BENGT, GEORGE BAKER, AND MICHAEL GiBbs. The Internal Economics of the Firm: Evidence from Personnel Data HOLMSTROM, BENGT, GEORGE BAKER, AND MICHAEL GiBBS. The Wage Policy of a HONG, YONGMIAO, THEODORE GROVES, JOHN MCMILLAN, AND BARRY NAUGHTON. Autonomy and Incentives in Chinese State Enterprises JAPPELLI, TULLIO, AND MARCO PAGANO. Saving, Growth, and Liquidity Constraints KasuyaP, ANIL K., OWEN A. LAMONT, AND JEREMY C. STEIN. Credit Conditions and the Cyclical Behavior of Inventories CONTENTS FOR VOLUME CIX KESSIDES, IOANNIS N., AND WILLIAM N. Evans. Living by the “‘Golden Rule’’: Multimarket Contact in the U. S. Airline Industry LAMONT, OWEN A., ANIL K. KASHYAP, AND JEREMY C. STEIN. Credit Conditions and the Cyclical Behavior of Inventories LAPHAM, BEVERLY J., AND MICHAEL B. DEVEREUX. The Stability of Economic Integration and Endogenous Growth Lown, CaRA S., AND JEFFREY A. FRANKEL. An Indicator of Future Inflation Extracted from the Steepness of the Interest Rate Yield Curve Along Its Entire Length MADRIAN, BRIGITTE C. Employment-Based Health Insurance and Job Mobility: Is TRO II OE GI ecsincischcinenssictcecncnesncencassassessecccctubsibebbieabtiaeemmataniions MARSHALL, ROBERT C., MICHAEL J. MEURER, AND JEAN-FRANCOIS RICHARD. Litiga- tion Settlement and Collusion MASSON, PAUL R., AND ALLAN DRAZEN. Credibility of Policies versus Credibility of Policymakers McMILLAN, JOHN, THEODORE GROVES, YONGMIAO HONG, AND BARRY NAUGHTON. Autonomy and Incentives in Chinese State Enterprises MEURER, MICHAEL J., ROBERT C. MARSHALL, AND JEAN-FRANCOIS RICHARD. Litiga- tion Settlement and Collusion MEYER, MarGARET A. The Dynamics of Learning with Team Production: Implica- tions for Task Assignment MoorE, JOHN, AND OLIVER Hart. A Theory of Debt Based on the Inalienability of Human Capital Murpny, KEVIN J., GEORGE BAKER, AND ROBERT GIBBONS. Subjective Performance Measures in Optimal Incentive Contracts NAUGHTON, BARRY, THEODORE GROVES, YONGMIAO HONG, AND JOHN MCMILLAN. Autonomy and Incentives in Chinese State Enterprises OLINER, STEPHEN D., ALAN J. AUERBACH, AND KEVIN A. HASSETT. Reassessing the Social Returns to Equipment Investment PAGANO, MARCO, AND TULLIO JAPPELLI. Saving, Growth, and Liquidity Constraints .. PARKER, JONATHAN A., GARY SOLON, AND ROBERT BARSKY. Measuring the Cyclical- ity of Real Wages: How Important Is Composition Bias? ..................::sseseeeee PENCAVEL, JOHN, AND WILLIAM M. BOoAL. The Effects of Labor Unions on Employ- ment, Wages, and Days of Operation: Coal Mining in West Virginia POTERBA, JAMES, AND JONATHAN GRUBER. Tax Incentives and the Decision to Purchase Health Insurance: Evidence from the Self-Employed RAJAN, RAGHURAM G. Why Bank Credit Policies Fluctuate: A Theory and Some Evidence RAMEY, VALERIE A., AND TIMOTHY F’. BRESNAHAN. Output Fluctuations at the Plant RHEE, BYUNG-KUN, CHRISTOPHER D. CARROLL, AND CHANGYONG RHEE. Are There Cultural Effects on Saving? Some Cross-Sectional Evidence RHEE, CHANGYONG, CHRISTOPHER D. CARROLL, AND BYUNG-KUN RHEE. Are There Cultural Effects on Saving? Some Cross-Sectional Evidence Rice, Eric M., AND JAMES R. HINES, JR. Fiscal Paradise: Foreign Tax Havens and American Business RICHARD, JEAN-FRANCOIS, ROBERT C. MARSHALL, AND MICHAEL J. MEURER. Litiga- tion Settlement and Collusion RIvVERA-BATIZ, LUIS, AND PAUL M. RoMER. Economic Integration and Endogenous Growth: An Addendum RoprIK, DANI, AND ALBERTO ALESINA. Distributive Politics and Economic Growth . RoMER, PAUL M., AND LuIs RIVERA-BATIz. Economic Integration and Endogenous Growth: An Addendum SCHARFSTEIN, Davip, PAUL ASQUITH, AND ROBERT GERTNER. Anatomy of Financial Distress: An Examination of Junk Bond Issuers Vili CONTENTS FOR VOLUME CIX SCHARFSTEIN, DAvID S., ROBERT H. GERTNER, AND JEREMY C. STEIN. Internal versus External Capital Markets SHLEIFER, ANDREI, AND ROBERT W. VISHNY. Politicians and Firms SoLon, GARY, ROBERT BARSKY, AND JONATHAN A. PARKER. Measuring the Cyclical- ity of Real Wages: How Important Is Composition Bias? .................::cccceeeeeeee STEIN, JEREMY C., ANIL K. KASHYAP, AND OWEN A. LAMONT. Credit Conditions and the Cyclical Behavior of Inventories STEIN, JEREMY C., ROBERT H. GERTNER, AND DAVID S. SCHARFSTEIN. Internal versus External Capital Markets SUMMERS, LAWRENCE H., AND J. BRADFORD DE LONG. Equipment Investment and Economic Growth: Reply TAYLOR, M. Scott, AND BRIAN R. COPELAND. North-South Trade and the Environ- TIROLE, JEAN, AND MATHIAS DEWATRIPONT. A Theory of Debt and Equity: Diversity of Securities and Manager-Shareholder Congruence TIROLE, JEAN, AND PHILIPPE AGHION. The Management of Innovation VISHNY, ROBERT W., AND ANDREI SHLEIFER. Politicians and Firms VON THADDEN, ERNST-LUDWIG, AND ERIK BERGLOF. Short-Term versus Long-Term Interests: Capital Structure with Multiple Investors WEIL, Davin N. The Saving of the Elderly in Micro and Macro Data Wo .insky, ASHER. Small Deviations from Maximizing Behavior in a Simple Dynamic Model TITLES Anatomy of Financial Distress: An Examination of Junk Bond Issuers. Paul Asquith, Robert Gertner, and David Scharfstein Are There Cultural Effects on Saving? Some Cross-Sectional Evidence. Chris- topher D. Carroll, Byung-Kun Rhee, and Changyong Rhee Autonomy and Incentives in Chinese State Enterprises. Theodore Groves, Yong- miao Hong, John McMillan, and Barry Naughton Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures. Eli Berman, John Bound, and Zvi Griliches Credibility of Policies versus Credibility of Policymakers. Allan Drazen and Paul Credit Conditions and the Cyclical Behavior of Inventories. Anil K. Kashyap, Owen A. Lamont, and Jeremy C. Stein Distributive Politics and Economic Growth. Alberto Alesina and Dani Rodrik The Dynamics of Learning with Team Production: Implications for Task Assign- ment. Margaret A. Meyer Economic Integration and Endogenous Growth: An Addendum. Luis Rivera-Batiz and Paul M. Romer The Effect of Sibling Sex Composition on Women’s Education and Earnings. Kristin F. Butcher and Anne Case The Effects of Labor Unions on Employment, Wages, and Days of Operation: Coal Mining in West Virginia. William M. Boal and John Pencavel Efficient and Inefficient Sales of Corporate Control. Lucian Arye Bebchuk Employment-Based Health Insurance and Job Mobility: Is There Evidence of Job-Lock? Brigitte C. Madrian Equipment Investment and Economic Growth: Reply. J. Bradford 'De Long and Lawrence H. Summers CONTENTS FOR VOLUME CIX ix The Firm as a Communication Network. Patrick Bolton and Mathias Dewatripont .. 809 Fiscal Paradise: Foreign Tax Havens and American Business. James R. Hines, Jr., and Eric M. Rice 149 How Does Future Income Affect Current Consumption? Christopher D. Carroll ... 111 Incomplete Written Contracts: Undescribable States of Nature. Luca Anderlini and Leonardo Felli 1085 An Indicator of Future Inflation Extracted from the Steepness of the Interest Rate Yield Curve Along Its Entire Length. Jeffrey A. Frankel and Cara S. Lown The Internal Economics of the Firm: Evidence from Personnel Data. George Baker, Mickael Gibbs, and Bengt Holmstrom Internal versus External Capital Markets. Robert H. Gertner, David S. Scharf- stein, and Jeremy C. Stein Litigation Settlement and Collusion. Robert C. Marshall, Michael J. Meurer, and Jean-Francois Richard Living by the ‘“‘Golden Rule’’: Multimarket Contact in the U. S. Airline Industry. William N. Evans and Ioannis N. Kessides The Management of Innovation. Philippe Aghion and Jean Tirole Measuring the Cyclicality of Real Wages: How Important Is Composition Bias? Gary Solon, Robert Barsky, and Jonathan A. Parker Monetary Policy, Business Cycles, and the Behavior of Small Manufacturing Firms. Mark Gertler and Simon Gilchrist North-South Trade and the Environment. Brian R. Copeland and M. Scott Taylor. Output Fluctuations at the Plant Level. Timothy F. Bresnahan and Valerie A. Permanent and Transitory Components of GNP and Stock Prices. John H. Politicians and Firms. Andrei Shleifer and Robert W. Vishny Reassessing the Social Returns to Equipment Investment. Alan J. Auerbach, Kevin A. Hassett, and Stephen D. Oliner Saving, Growth, and Liquidity Constraints. Tullio Jappelli and Marco Pagano The Saving of the Elderly in Micro and Macro Data. David N. Weil Short-Term versus Long-Term Interests: Capital Structure with Multiple Inves- tors. Erik Bergléf and Ernst-Ludwig von Thadden Small Deviations from Maximizing Behavior in a Simple Dynamic Model. Asher Wolinsky The Stability of Economic Integration and Endogenous Growth. Michael B. Devereux and Beverly J. Lapham Subjective Performance Measures in Optimal Incentive Contracts. George Baker, Robert Gibbons, and Kevin J. Murphy Tax Incentives and the Decision to Purchase Health Insurance: Evidence from the Self-Employed. Jonathan Gruber and James Poterba A Theory of Debt and Equity: Diversity of Securities and Manager-Shareholder Congruence. Mathias Dewatripont and Jean Tirole A Theory of Debt Based on the Inalienability of Human Capital. Oliver Hart and Thy Neighbor’s Keeper: The Design of a Credit Cooperative with Theory and a Test. Abhijit V. Banerjee, Timothy Besley, and Timothy W. Guinnane Uninsured Idiosyncratic Risk and Aggregate Saving. S. Rao Aiyagari The Wage Policy of a Firm. George Baker, Michael Gibbs, and Bengt Holmstrom . Why Bank Credit Policies Fluctuate: A Theory and Some Evidence. Raghuram G. Rajan