Table Of Content

CONTENTS FOR VOLUME CXIx Authors ACEMOGLU, DARON, AND JOSHUA LINN. Market Size in Innovation: Theory and Evidence from the Pharmaceutical Industry AGHION, PHILIPPE, ALBERTO ALESINA, AND FRANCESCO TREBBI. Endogenous Polit- EE RE NI NEE LONER SA REET SET ae ee PR Ee AKHMEDOV, AKHMED, AND EKATERINA ZHURAVSKAYA. Opportunistic Political Cy- cles: Test in a Young Democracy Setting ALCALA, FRANCISCO, AND ANTONIO CICCONE. Trade and Productivity ALESINA, ALBERTO, PHILIPPE AGHION, AND FRANCESCO TREBBI. Endogenous Politi- I aaa ia iatanlaae bisat octspeaareczancecciivconen enunekkeersntanaeiiialaaiindeidsedmsehiniicn BAKER, GEORGE P., AND THOMAS N. HusBarD. Contractibility and Asset Owner- ship: On-Board Computers and Governance in U. S. Trucking BARBERA, SALVADOR, AND MATTHEW O. JACKSON. Choosing How to Choose: Self- Stable Majority Rules and Constitutions BERNARDO, ANTONIO E., AND Ivo WELCH. Liquidity and Financial Market Runs BERTRAND, MARIANNE, ESTHER DUFLO, AND SENDHIL MULLAINATHAN. How Much Should We Trust Differences-In-Differences Estimates? ..................:ccc00e00 BESLEY, TIMOTHY, AND RoBIN BurGEss. Can Labor Reguiation Hinder Eccaomic Performance? Evidence from India BoTerRO, JUAN C., SIMEON DJANKOV, RAFAEL LA PortTA, FLORENCIO LOPEZ-DE- SILANES, AND ANDREI SHLEIFER. The Regulation of Labor BurGEssS, ROBIN, AND TIMOTHY BESLEY. Can Labor Regulation Hinder Economic Performance? Evidence from India BUTLER, MATTHEW J., DAvip S. LEE, AND ENricoO Moretti. Do Voters Affect Or Elect Policies? Evidence from the U. S. House CAMERER, COLIN F., TeEcK-HuUA Ho, AND JUIN-KUAN CHONG. A Cognitive Hierar- chy Model of Games Castro, Rut, GIAN LucA CLEMENTI, AND GLENN MACDONALD. Investor Protection, Optimal Incentives, and Economic Growth CHONG, JUIN-KUAN, COLIN F. CAMERER, AND TECK-Hua Ho. A Cognitive Hierar- chy Model of Games CICCONE, ANTONIO, AND FRANCISCO ALCALA. Trade and Productivity CLEMENTI, GIAN Luca, Rul CASTRO, AND GLENN MACDONALD. Investor Protection, Optimal Incentives, and Economic Growth Davis, JosepH H. An Annual Index of U. S. Industrial Production, 1790- DEHEJIA, RAJEEV, AND ADRIANA LLERAS-MUNEY. Booms, Busts, and Babies’ DELLAVIGNA, STEFANO, AND ULRIKE MALMENDIER. Contract Design and Self- Control: Theory and Evidence DINARDO, JOHN, AND Davip S. LEE. Economic Impacts of New Unionization on Private Sector Employers: 1984-2001 1383 DJANKOV, SIMEON, JUAN C. BoTERO, RAFAEL LA PorTA, FLORENCIO LOPEZ-DE- SILANES, AND ANDREI SHLEIFER. The Regulation of Labor 1339 DuFL_o, ESTHER, MARIANNE BERTRAND, AND SENDHIL MULLAINATHAN. How Much Should We Trust Differences-In-Differences Estimates? ................:ccccseseeee 249 vi CONTENTS FOR VOLUME CXIX FERNANDEZ, RAQUEL, ALESSANDRA FOGLI, AND CLAUDIA OLIVETTI. Mothers and Sons: Preference Formation and Female Labor Force Dynamics FINKELSTEIN, Amy. Static and Dynamic Effects of Health Policy: Evidence from the Vaccine Industry Foci, ALESSANDRA, RAQUEL FERNANDEZ, AND CLAUDIA OLIve™TI. Mothers and Sons: Preference Formation and Female Labor Force Dynamics FRYER, ROLAND G., JR., AND STEVEN D. Levitr. The Causes and Consequences of Distinctively Black Names GouLp, Eric D., Victor Lavy, AND M. DANIELE PASERMAN. Immigrating to Op- portunity: Estimating the Effect of School Quality Using a Natural Experi- ment on Ethiopians in Israel Guiso, Luici, PAOLA SAPIENZA, AND LUIGI ZINGALES. Does Local Financial Devel- opment Matter? HALL, RoBert E. Measuring Factor Adjustment Costs Ho, Teck-Hua, CouLin F. CAMERER, AND JUIN-KUAN CHONG. A Cognitive Hierar- TO NI nce tian cocci have baspitestisiesennerperoasavonbennababuenienectsheneniaaass Hortacsu, ALI AND CHAD SYVERSON. Product Differentiation, Search Costs, and Competition in the Mutual Fund Industry: A Case Study of S&P 500 Index ca cantn pads ara pest Pence arco iisicbainesvccaseatiebabdeinabiacedacbanechiicansinvaee HuBBARD, THOMAS N., AND GEORGE P. BAKER. Contractibility and Asset Owner- ship: On-Board Computers and Governance in U. S. Trucking JACKSON, MATTHEW O., AND SALVADOR BARBERA. Choosing How to Choose: Self- Stable Majority Rules and Constitutions JACOBSON, MIREILLE. Baby Booms and Drug Busts: Trends in Youth Drug Use in the United States, 1975-2000 KING, ROBERT G., AND ALEXANDER L. WOLMAN. Monetary Discretion, Pricing Complementarity, and Dynamic Multiple Equilibria LA Porta, RAFAEL, JUAN C. BOTERO, SIMEON DJANKOV, FLORENCIO LOPEZ-DE- SILANES, AND ANDREI SHLEIFER. The Regulation of Labor Lavy, Victor, Eric D. GouLD, AND M. DANIELE PASERMAN. Immigrating to Op- portunity: Estimating the Effect of School Quality Using a Natural Experi- ment on Ethiopians in Israel LEE, DAvip S., AND JOHN DiNarpbo. Economic Impacts of New Unionization on Private Sector Employers: 1984-2001 LEE, Davip S., ENrIco MORETTI, AND MATTHEW J. BUTLER. Do Voters Affect Or Elect Policies? Evidence from the U. S. House LEVITT, STEVEN D., AND ROLAND G. FRYER, JR. The Causes and Consequences of SI IC ossniccnsici alogiohbuneilad eaibiesuancbungananueiicimindn LINN, JOSHUA, AND DARON ACEMOGLU. Market Size in Innovation: Theory and Evidence from the Pharmaceutical Industry List, JOHN A. The Nature and Extent of Discrimination in the Marketplace: Evidence from the Field LizzERI, ALESSANDRO, AND NICOLA Persico. Why Did the Elites Extend the Suffrage? Democracy and the Scope of Government, with an Application to Britain’s “Age of Reform” LLERAS-MUNEY, ADRIANA, AND RAJEEV DEHEJIA. Booms, Busts, and Babies’ LOPEZ-DE-SILANES, FLORENCIO, JUAN C. BoTERO, SIMEON DJANKOV, RAFAEL LA PortTA, AND ANDREI SHLEIFER. The Regulation of Labor MAcDONALD, GLENN, RuI CASTRO, AND GIAN LuCA CLEMENTI. Investor Protection, Optimal Incentives, and Economic Growth MALMENDIER, ULRIKE, AND STEFANO DELLAVIGNA. Contract Design and Self- Control: Theory and Evidence Mosius, Markus M., AND TANYA S. ROSENBLAT. Getting Closer Or Drifting IN oda tes ona npsameeadace ca cadena cou cicaecst n ssn rep pebboipanbonis abusbaaadaitioncnentartas CONTENTS FOR VOLUME CXIX MorettTI1, Enrico, DAvip S. LEE, AND MATTHEW J. BUTLER. Do Voters Affect Or Elect Policies? Evidence from the U. S. House MorGaNn, DONALD P., BERTRAND RIME, AND PHILIP E. STRAHAN. Bank Integration and State Business Cycles MULLAINATHAN, SENDHIL, MARIANNE BERTRAND, AND ESTHER DuFLO. How Much Should We Trust Differences-In-Differences Estimates? ...............::cc000000002 MULLER, HOLGER M., AND Fausto PANuNzI. Tender Offers and Leverage NALEBUFF, BARRY. Bundling as an Entry Barrier NIEPELT, Dirk. The Fiscal Myth of the Price Level OLIVETTI, CLAUDIA, RAQUEL FERNANDEZ, AND ALESSANDRA FoGLi. Mothers and Sons: Preference Formation and Female Labor Force Dynamics PANUNZI, FAUSTO, AND HOLGER M. MULLER. Tender Offers and Leverage PASERMAN, M. DANIELE, Eric D. GOULD, AND Victor LAvy. Immigrating to Op- portunity: Estimating the Effect of School Quality Using a Natural Experi- ment on Ethiopians in Israel Persico, NICOLA, AND ALESSANDRO LIzzERI. Why Did the Elites Extend the Suffrage? Democracy and the Scope of Government, with an Application to Britain’s “Age of Reform” REINHART, CARMEN M., AND KENNETH S. RoGorr. The Modern History of Ex- change Rate Arrangements: A Reinterpretation REINIKKA, RITVA, AND JAKOB SVENSSON. Local Capture: Evidence from a Central Government Transfer Program in Uganda RIME, BERTRAND, DONALD P. MORGAN, AND PHILIP E. STRAHAN. Bank Integration and State Business Cycles RoGorr, KENNETH S., AND CARMEN M. REINHART. The Modern History of Ex- change Rate Arrangements: A Reinterpretation ROSENBLAT, TANYA S., AND MARKUS M. Mostius. Getting Closer Or Drifting Noosa niesioh encica ada naling Naat rien Aseicoanisnsdanncaceseabpa tenn ieampalmiabaiaaiasaibeduaraen Rorn, ALVIN E., TAYFUN SONMEZ, AND M. Urku Unver. Kidney Exchange SAPIENZA, PAOLA, LuIGI GUISO, AND LUIGI ZINGALES. Does Local Financial Devel- WIN sxsasnssicicnnnacicssisyachicckiocentacicsndahasuibebavenisjpaendenadeasamsmpabeasmpmeransuaianes Scuort, PETER K. Across-Product versus Within-Product Specialization in In- ternational Trade SHAMBAUGH, JAY C. The Effect of Fixed Exchange Rates on Monetary Policy ... SHLEIFER, ANDREI, JUAN C. BOTERO, SIMEON DJANKOV, RAFAEL LA PorTA, AND FLORENCIO LOPEZ-DE-SILANES. The Regulation of Labor SONMEZ, TAYFUN, ALVIN E. ROTH, AND M. UTku UNver. Kidney Exchange STRAHAN, PHILIP E., DONALD P. MORGAN, AND BERTRAND RIME. Bank Integration and State Business Cycles STROMBERG, Davib. Radio’s Impact on Public Spending SVENSSON, JAKOB, AND RiTVA REINIKKA. Local Capture: Evidence from a Central Government Transfer Program in Uganda SYVERSON, CHAD AND ALi Hortacsu. Product Differentiation, Search Costs, and Competition in the Mutual Fund Industry: A Case Study of S&P 500 Index TREBBI, FRANCESCO, PHILIPPE AGHION, AND ALBERTO ALESINA. Endogenous Politi- IN IID ison ssnsvadentacticnamiarisnieseacatleisudoneaesihunensnamuanaidicogeschinpicaibgahaemkcaitaeisees Unver, M. Urku, ALVIN E. Roto, AND TAYFUN SONMEZ. Kidney Exchange WELCH, Ivo, AND ANTONIO E. BERNARDO. Liquidity and Financial Market WOLMAN, ALEXANDER L., AND RoBERT G. KING. Monetary Discretion, Pricing Complementarity, and Dynamic Multiple Equilibria YILDIZ, MUHAMET. Waiting to Persuade ZHURAVSKAYA, EKATERINA, AND AKHMED AKHMEDOV. Opportunistic Political Cy- cles: Test in a Young Democracy Setting Vill CONTENTS FOR VOLUME CXIX ZINGALES, LutGi, LuiGi GUISO, AND PAOLA SAPIENZA. Does Local Financial Devel- opment Matter? Across-Product versus Within-Product Specialization in International Trade. Peter K. Schott An Annual Index of U.S. Industrial Production, 1790-1915. Joseph H. Davis ......... Baby Booms and Drug Busts: Trends in Youth Drug Use in the United States, 1975-2000. Mireille Jacobson Bank Integration and State Business Cycles. Donald P. Morgan, Bertrand Rime, and Philip E. Strahan Booms, Busts, and Babies’ Health. Rajeev Dehejia and Adriana Lleras-Muney .. = as an Entry Barrier. Barry Nalebuff Can Labor Regulation Hinder Economic Performance? Evidence from India. CRI RENNIN RINE UONTINE BNE os caskccss veicbsenedcersneceenassnconeavendunceannodeoniiecahn e The Causes and Consequences of Distinctively Black Names. Roland G. Fryer, Jr. and Steven D. Levitt Choosing How to Choose: Self-Stable Majority Rules and Constitutions. Salva- dor Barbera and Matthew O. Jackson A Cognitive Hierarchy Model of Games. Colin F. Camerer, Teck-Hua Ho, and Juin-Kuan Chong Contract Design and Self-Control: Theory and Evidence. Stefano DellaVigna and Ulrike Malmendier Contractibility and Asset Ownership: On-Board Computers and Governance in U.S. Trucking. George P. Baker and Thomas N. Hubbard Do Voters Affect Or Elect Policies? Evidence from the U.S. House. David S. Lee, Enrico Moretti, and Matthew J. Butler......................cccccssesccsssesesssessercccssenes Does Local Financial Development Matter? Luigi Guiso, Paola Sapienza, and EE NINN 55:13 saapcacoscue arate beaetansinas wonseccnaae bopneiniuasanbonemussmskcbendooueaceannbecneubie Economic Impacts of New Unionization on Private Sector Employers: 1984- 2001. John DiNardo and David S. Lee The Effect of Fixed Exchange Rates on Monetary Policy. Jay C. Shambaugh ... Endogenous Political Institutions. Philippe Aghion, Alberto Alesina, and Francesco Trebbi Erratum The Fiscal Myth of the Price Level. Dirk Niepelt Getting Closer Or Drifting Apart? Tanya S. Rosenblat and Markus M. Mobius .... How Much Should We Trust Differences-In-Differences Estimates?. Marianne Bertrand, Esther Duflo, and Sendhil Mullainathan Immigrating to Opportunity: Estimating the Effect of School Quality Using a Natural Experiment on Ethiopians in Israel. Eric D. Gould, Victor Lavy, and M. Daniele Paserman Investor Protection, Optimal Incentives, and Economic Growth. Rui Castro, Gian Luca Clementi, and Glenn MacDonald Kidney Exchange. Alvin E. Roth, Tayfun Sonmez, and M. Utku Unver Liquidity and Financial Market Runs. Antonio E. Bernardo and Ivo Welch Local Capture: Evidence from a Central Government Transfer Program in Uganda. Ritva Reinikka and Jakob Svensson Market Size in Innovation: Theory and Evidence from the Pharmaceutical Industry. Daron Acemoglu and Joshua Linn 1049 Measuring Factor Adjustment Costs. Robert E. Halli 899 The Modern History of Exchange Rate Arrangements: A Reinterpretation. Car- men M. Reinhart and Kenneth S. Rogoff CONTENTS FOR VOLUME CXIX Monetary Discretion, Pricing Complementarity, and Dynamic Multiple Equilib- ria. Robert G. King and Alexander L. Wolman Mothers and Sons: Preference Formation and Female Labor Force Dynamics. Raquel Fernandez, Alessandra Fogli, and Claudia Olivetti The Nature and Extent of Discrimination in the Marketplace: Evidence from the Ne NN I: MON ns csesce coedadiie iliess onihan tasaananecbondaaioaleassnabionboiagatcoisneac eeilcienme Opportunistic Political Cycles: Test in a Young Democracy Setting. Akhmed Akhmedov and Ekaterina Zhuravskaya Product Differentiation, Search Costs, and Competition in the Mutual Fund Industry: A Case Study of S&P 500 Index Funds. Ali Hortagsu and Chad Syverson Radio’s Impact on Public Spending. David Stromberg The Regulation of Labor. Juan C. Botero, Simeon Djankov, Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer Static and Dynamic Effects of Health Policy: Evidence from the Vaccine Indus- try. Amy Finkelstein Tender Offers and Leverage. Holger M. Muller and Fausto Panunzi Trade and Productivity. Francisco Alcala and Antonio Ciccone Waiting to Persuade. Muhamet Yildiz Why Did the Elites Extend the Suffrage? Democracy and the Scope of Govern- ment, with an Application to Britain’s “Age of Reform”. Alessandro Lizzeri and Nicola Persico