Economic Perspectives
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1 A journal of the American Economic Association Summer 2011
2 A journal of the American Economic Association Editor David H. Autor, Massachusetts Institute of Technology Co-editors Charles I. Jones, Stanford University John A. List, University of Chicago Associate Editors Katherine Baicker, Harvard University Benjamin G. Edelman, Harvard University Robert C. Feenstra, University of California at Davis Raymond Fisman, Columbia University Susan Houseman, Upjohn Institute for Employment Research Chang-Tai Hsieh, University of Chicago Anil Kashyap, University of Chicago Jonathan Morduch, New York University Rohini Pande, Harvard University Bruce Sacerdote, Dartmouth College Fiona Scott Morton, Yale University Kerry Smith, Arizona State University Managing Editor Timothy Taylor Assistant Editor Ann Norman Editorial offices: Journal of American Economic Association Publications 2403 Sidney St., #260 Pittsburgh, PA gratefully acknowledges the support of Macalester College. Registered in the U.S. Patent and Trademark Office ( ). Copyright 2011 by the American Economic Association; All Rights Reserved. Composed by American Economic Association Publications, Pittsburgh, Pennsylvania, U.S.A. Printed by R. R. Donnelley Company, Jefferson City, Missouri, 65109, U.S.A. No responsibility for the views expressed by the authors in this journal is assumed by the editors or by the American Economic Association. THE JOURNAL OF ECONOMIC PERSPECTIVES (ISSN ), Summer 2011, Vol. 25, No. 3. The JEP is published quarterly (February, May, August, November) by the American Economic Association, 2014 Broadway, Suite 305, Nashville, TN Annual fees for regular membership are $70.00, $84.00, or $98.00 depending on income. Further information on subscriptions and the American Economic Association can be found at < Periodicals postage paid at Nashville, TN, and at additional mailing offices. POSTMASTER: Send address changes to the Journal of, 2014 Broadway, Suite 305, Nashville, TN Printed in the U.S.A.
3 Contents Volume 25 Number 3 Summer 2011 Symposia Field Experiments John A. List, Why Economists Should Conduct Field Experiments and 14 Tips for Pulling One Off Jens Ludwig, Jeffrey R. Kling, and Sendhil Mullainathan, Mechanism Experiments and Policy Evaluations David Card, Stefano DellaVigna, and Ulrike Malmendier, The Role of Theory in Field Experiments Oriana Bandiera, Iwan Barankay, and Imran Rasul, Field Experiments with Firms Emigration Michael A. Clemens, Economics and Emigration: Trillion-Dollar Bills on the Sidewalk? John Gibson and David McKenzie, Eight Questions about Brain Drain Dean Yang, Migrant Remittances Articles Douglas Almond and Janet Currie, Killing Me Softly: The Fetal Origins Hypothesis Raven Molloy, Christopher L. Smith, and Abigail Wozniak, Internal Migration in the United States Christopher Udry, Esther Duflo: 2010 John Bates Clark Medalist Features Margaret Schabas and Carl Wennerlind, Retrospectives: Hume on Money, Commerce, and the Science of Economics Timothy Taylor, Recommendations for Further Reading Correspondence: David H. Autor and Bruno S. Frey Notes
4 Statement of Purpose attempts to fill a gap between the general interest press and most other academic economics journals. The journal aims to publish articles that will serve several goals: to synthesize and integrate lessons learned from active lines of economic research; to provide economic analysis of public policy issues; to encourage cross-fertilization of ideas among the fields of economics; to offer readers an accessible source for state-of-the-art economic thinking; to suggest directions for future research; to provide insights and read- ings for classroom use; and to address issues relating to the economics profession. Articles appearing in the journal are normally solicited by the editors and associate editors. Proposals for topics and authors should be directed to the journal office, at the address inside the front cover. Policy on Data Availability It is the policy of the Journal of to publish papers only if the data used in the analysis are clearly and precisely documented and are readily available to any researcher for purposes of replication. Details of the computations sufficient to permit replication must be provided. The Editor should be notified at the time of submission if the data used in a paper are proprietary or if, for some other reason, the above requirements cannot be met. Policy on Disclosure Authors of articles appearing in the Journal of are expected to disclose any potential conflicts of interest that may arise from their consulting activities, financial interests, or other nonacademic activities. Journal of Advisory Board Abhijit Banerjee, Massachusetts Institute of Technology Olivier Blanchard, International Monetary Fund Judy Chevalier, Yale University Dora Costa, Massachusetts Institute of Technology Elizabeth Hoffman, Iowa State University Patrick Kehoe, University of Minnesota David Leonhardt, The New York Times Eugene Steuerle, Urban Institute Luigi Zingales, University of Chicago
5 The American Economic Association Correspondence relating to advertising, business matters, permissions to quote, subscriptions, and changes of address should be sent to the American Economic Association, 2014 Broadway, Suite 305, Nashville, TN 37203; Please remit any membership payment with the application included elsewhere in this journal or at the JEP website. Change of address notice must be received at least six (6) weeks prior to the publication month. A membership or subscription paid twice is automatically extended for an additional year unless otherwise requested. Copyright 2011 by the American Economic Association. Permission to make digital or hard copies of part or all of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or direct commercial advantage and that copies show this notice on the first page or initial screen of a display along with the full citation, including the name of the author. Copyrights for components of this work owned by others than AEA must be honored. Abstracting with credit is permitted. The author has the right to republish, post on servers, redistribute to lists, and use any component of this work in other works. For others to do so requires prior specific permission and/ or a fee. Per missions may be requested from the American Economic Association, 2014 Broadway, Suite 305, Nashville, TN 37203; aeainfo@vanderbilt.edu. Founded in 1885 EXECUTIVE COMMITTEE Elected Officers and Members President ORLEY C. ASHENFELTER, Princeton University President-elect CHRISTOPHER A. SIMS, Princeton University Vice Presidents TIMOTHY F. BRESNAHAN, Stanford University LARS PETER HANSEN, University of Chicago Members DARON ACEMOGLU, Massachusetts Institute of Technology MARIANNE BERTRAND, University of Chicago JONATHAN M. GRUBER, Massachusetts Institute of Technology VALERIE A. RAMEY, University of California at San Diego MONIKA PIAZZESI, Stanford University MICHAEL WOODFORD, Columbia University Ex Officio Members ANGUS DEATON, Princeton University ROBERT E. HALL, Stanford University Appointed Members Editor, The American Economic Review PINELOPI KOUJIANOU GOLDBERG, Yale University Editor, Economic Literature JANET M. CURRIE, Columbia University Editor, DAVID H. AUTOR, Massachusetts Institute of Technology Editor, American Economic Journal: Applied Economics ESTHER DUFLO, Massachusetts Institute of Technology Editor, American Economic Journal: Economic Policy ALAN J. AUERBACH, University of California at Berkeley Editor, American Economic Journal: Macroeconomics STEVEN J. DAVIS, University of Chicago Editor, American Economic Journal: Microeconomics ANDREW POSTLEWAITE, University of Pennsylvania Secretary-Treasurer JOHN J. SIEGFRIED, Vanderbilt University and University of Adelaide OTHER OFFICERS Editor, Resources for Economists WILLIAM GOFFE, State University of New York at Oswego Director of AEA Publication Services and Managing Director of EconLit Production and Marketing DRUCILLA EKWURZEL, Pittsburgh Managing Director of EconLit Product Design and Content STEVEN L. HUSTED, University of Pittsburgh Associate Secretary-Treasurer PETER L. ROUSSEAU, Vanderbilt University Counsel TERRY CALVANI, Freshfields Bruckhaus Deringer LLP, Washington, D.C. ADMINISTRATORS Administrative Director REGINA H. MONTGOMERY Convention Manager MARLENE HIGHT
6 Summer 2011, Volume 25, Number 3 Symposia Field Experiments John A. List, Why Economists Should Conduct Field Experiments and 14 Tips for Pulling One Off Jens Ludwig, Jeffrey R. Kling, and Sendhil Mullainathan, Mechanism Experiments and Policy Evaluations David Card, Stefano DellaVigna, and Ulrike Malmendier, The Role of Theory in Field Experiments Oriana Bandiera, Iwan Barankay, and Imran Rasul, Field Experiments with Firms Emigration Michael A. Clemens, Economics and Emigration: Trillion-Dollar Bills on the Sidewalk? John Gibson and David McKenzie, Eight Questions about Brain Drain Dean Yang, Migrant Remittances Articles Douglas Almond and Janet Currie, Killing Me Softly: The Fetal Origins Hypothesis Raven Molloy, Christopher L. Smith, and Abigail Wozniak, Internal Migration in the United States Christopher Udry, Esther Duflo: 2010 John Bates Clark Medalist Features Margaret Schabas and Carl Wennerlind, Retrospectives: Hume on Money, Commerce, and the Science of Economics Recommendations for Further Reading Correspondence Notes
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