Organizations & Markets

Was the adoption of the euro accompanied by an increase in prices? Did it promote goods market arbitrage in the form of faster convergence to a common price? By comparing the experience of eurozone countries to non-euro European countries in a "difference-in-differences" specification, we net out effects on prices unrelated to the euro. We find neither evidence of significant price increases associated with the euro, nor evidence of a significant improvement in market integration.

A growing body of research has demonstrated an important relationship between work experience and teacher productivity. This implies that educational quality can be improved through reduction in turnover or acceleration of the return to experience. Mentoring has become an extremely popular policy to achieve these goals, but little is known about its general impact on teachers. I study the impact of mentoring on new teachers in New York City, which adopted a nationally recognized mentoring program in 2004.

The separation of ownership and control allows controlling shareholders to pursue private benefits. We develop an analytically tractable dynamic stochastic general equilibrium model to study asset pricing and welfare implications of imperfect investor protection. Consistent with empirical evidence, the model predicts that countries with weaker investor protection have more incentives to overinvest, lower Tobin's q, higher return volatility, larger risk premia, and higher interest rate.

We combine data from the housing market with data from the North Carolina Sex Offender Registry to estimate how individuals value living in close proximity to a convicted criminal. We use the exact location of sex offenders to exploit variation in the threat of crime within small homogeneous groupings of homes, and we use the timing of sex offenders' arrivals to control for baseline property values in the area. We find statistically and economically significant negative effects of sex offenders' locations that are extremely localized.

Individuals engage in status self-enhancement when they form an overly positive perception of their status in a group. We argue that status self-enhancement incurs social costs and, therefore, most individuals perceive their status accurately. In contrast, theories of positive illusions suggest status self-enhancement is beneficial for the individual and that most individuals overestimate their status. We found supportive evidence for our hypotheses in a social relations analysis of laboratory groups, an experiment that manipulated status self-enhancement, and a study of real-world groups.

Peer-to-Peer (P2P) is a communication structure in which individuals interact directly, without going through a centralized system. The implications of this architecture go far beyond the technological realm; the ability of individuals to share digital content files, including audio and video material, in real time, facilitates communication and, at a deeper cultural level, promotes community without hierarchy or strict control.

In recent decades, sex offenders have been the targets of some of the most far reaching and novel crime legislation in the U.S. Two key innovations have been registration and notification laws which, respectively, require that convicted sex offenders provide valid contact information to law enforcement authorities, and that information on sex offenders be made public.

Recent evidence suggests that many organizational members and leaders are seen as under- or over-assertive by colleagues, suggesting that having the "right touch" with interpersonal assertiveness is a meaningful and widespread challenge. In this article, I review emerging work on the curvilinear relation between assertiveness and effectiveness, including evidence from both qualitative descriptions of coworkers and ratings of colleagues and leaders.

The economy of India is growing at a rate of 8 percent per year, and its exports of goods and services have more than doubled in the past three years. Considering these trends, economists, scholars, and political leaders across the globe are beginning to wonder whether India's growth can be sustained.