UARTERLY JOURNAL OF ECONOMICS FOUNDED 1886 VOLUME CXxII Board of Editors Robert J. Barro Edward L. Glaeser Lawrence F. Katz Assistant Editor Trina Ott PUBLISHED FOR HARVARD UNIVERSITY BY THE MIT PRESS, CAMBRIDGE, MASSACHUSETTS 2007 CONTENTS FOR VOLUME CXxXII Authors Page ACEMOGLU, DARON, PHILIPPE AGHION, CLAIRE LELARGE, JOHN VAN REENEN, AND FABRIZIO ZILIBOTTI. ae Information, and the Decentralization of the Firm AGUIAR, MARK, AND ERIK Hurst. Measuring Trends in Leisure: The Allocation of Time Over Five Decades ALESSANDRIA, GEORGE, AND HorAG Cuol. Do Sunk Costs of Exporting Matter for Net Export Dynamics? BANDIERA, ORIANA, IWAN BARANKAY, AND IMRAN RASUL. Incentives for Man- agers and Inequality among Workers: Evidence from a Firm-Level Experiment BANERJEE, ABHIJIT, SHAWN COLE, DUFLO, ESTHER, AND LEIGH LINDEN. Remedying Education: Evidence from Two Randomized Experiments in India BARTEL, ANN, CASEY ICHNIOWSKI, AND KATHRYN SHAW. How Does Information Tech- nology Affect Productivity? Plant-Level Comparisons of Product Innovation, Process Improvement, and Worker Skills 3AUM-SNOwW, NATHANIAL. Did Highways Cause Suburbanization? BENNEDSEN, MORTEN, KASPER MEISNER NIELSON, FRANCISCO PEREZ-GONZALEZ, AND DANIEL WOLFENZON. Inside the Family Firm: The Role of Families in Suc- cession Decisions and Performance .... BERTRAND, MARIANNE, SIMEON DJANKOV, REMA HANNA, AND SENDHIL MUL- LAINATHAN. Obtaining a Driver’s License in India: An Experimental Ap- proach to Studying Corruption BESLEY, TIMOTHY, AND LAN PRESTON. Electoral Bias and Policy Choice: Theory and Evidence BLACK, SANDRA E., PAUL J.“ DEVEREU X, AND KJELL G. SALV ANES. From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes 3LEAKLEY, Hoyt. Disease and Development: Evidence from Hookworm Eradica- tion in the American South BLOOM, NICHOLAS, AND JOHN VAN REENEN. Measuring and Explaining Manage- ment Practices across Firms and Countries a Carb, Davip, RAJ CHETTY, AND ANDREA WEBER. Cash-on-Hand and Compet- ing Models of nemeaieedsaee Behavior: New Evidence from the Labor Market CASELLI, FRANCESCO, AND JAME S FEYRER. The Marginal Product of Capital CHETTY, RAJ, AND ADAM SZEIDL. Consumption Commitments and Risk Prefer- ences COATE, STEPHEN, AND | BRIAN KNIG HT. Socially Optim: al Districting: A Theoretical and Empirical Exploration CREMER, JACQUES, LUIS GARICANO, AND ANDREA PRaT. Language and the Theory of the Firm ELLAVIGNA, STEFANO, AND E1T HAN KAPLAN. The Fox News sE ffect: Media Bias and Voting ...... Di TELLA, RAFAEL, SEBASTIAN GALIANI, AND ERNESTO Sc HARGRODSKY. The Forma- tion of Beliefs: Evidence from the Allocation of Land Titles to Squatters .. DuFLO, ESTHER, AND ROHINE PANDE. Dams .. ECHENIQUE, FEDERICO, AND ROLAND G. Fryer, Jr. A Measure of Segregation Based on Social Interactions CONTENTS FOR VOLUME CXXII EISENSEE, THOMAS, AND DAVID STROMBERG. New Droughts, New Floods, and U.S. Disaster Relief : FIELD, Erica. Entitled to Work U rbs in Property Rights : and Labor Supply in P eru FINKELSTEIN, AMY. The Aggregate Effectso f Health Insurance: Evidence from the Introduction of Medicare ere GOLOSOV, MIKHAIL, AND ALEH TSYVINSKI. Optim: il Taxation with E ndoge nous Insurance Markets ‘ HALL, ROBERT E., AND CHARLES L.J ONES. The V: lue of Life and the » Rise in Health Spending Pcie eye JACOB, BRIAN A., AND L ARS LEFGREN. W haa tt Do Parents Value in Education? An Empirical Investigation of Parents’ Revealed Preferences for Teachers ‘ 1603 JENSEN, ROBERT. The Digital Provide: Information (Technology), Market Perfor- mance and Welfare in the South Indian Fisheries Sector . cas 879 Kopczuk, WoJCIECH. Bequest and Tax Planning: Evidence from Estate Tax Returns ata een 1801 KOREN, MIKLOS, AND SILVANA TENREYRO Volatility and Development . 243 KREMER, MICHAEL, AND EDWARD MIGUEL. The Illusion of Sustainability ....... 1007 LUDWIG, JENS, AND DOUGLAS L. Miller. Does Head Start Improve Children’s L ife Chances? Evidence From a Regression Discontinuity Design .. ee 159 LUTTMER, ErzoG . J. Selection, Growth, and the Size Distribution of Firms .... 1103 MORTIMER, JULIE HOLLAND. Price Discrimination, Copyright Law, and Technolog- ical Innovation: Evidence from the Introduction of DVDs ; 1307 NIEDERLE, MURIEL, AND LISE VESTERLUND. Do Women Shy Away From Competi- tion?D o Men Compete Too Much? j ‘ NISHIYAMA, SHINICHI, AND KENT SMETTERS. Does Social Security Privatization Produce Efficiency Gains? NUNN, NATHAN. Relationship- Specificity, Incomp ylete Contracts, and the Patterm f Trade ... eer are ; ad SACERDOTE, BRUCE. How Large Are the Effects from Changes in Family Environ- ment? A Study of “nena in-American Adoptees SHIMER, ROBERT, AND IVAN WERNING. Reservation Wages ; and Unemployment Insurance 7 ; j ; OWBERG, ERIK, JUSTIN WOLFERS, AND Eric ZITZEWITz. Partisan Impacts on the Economy: Evidence from Prediction Markets and Close Elections VISSER, BAUKE, AND OTtTo H. SWANK. On Committees of Experts WEILL, na N. Accounting for the Effect of Health on Economic Growth WER , IVAN. Optimal Fiscal Policy with Redistribution Titles A Measure of Segregation Based on Social Interactions. Federico Echenique and Roland G. Fryer, Jr. ee Accounting for the Effect of ‘He alth on Economic Growth. ‘David N. Weil .. Bequest and Tax Planning: Evidence from Estate Tax Returns. Wojciech Kopezu Cash-on-Hand and Competing Models of Intertemporal Behavior: New Evidence from the Labor Market. David Card, Raj Chetty, and Andrea Weber ; Consumption Commitments and Risk Preferences. Raj Chetty and Adam Szeid] Dams. Esther Duflo and Rohine Pande © Did Highways Cause Suburbanization? Nathanial Baum- Snow Disease and Development: Evidence from Hookworm Eradication in the Ameri- can South. Hoyt Bleakley CONTENTS FOR VOLUME CXXII Do Sunk Costs of Exporting Matter for Net Export Dynamics?George Alessandria and Horag Choi Do Women Shy Away From Compe tition? Do Me 2n Compete ‘Too Much? Muriel Niederle and Lise Vesterlund. ;, Does Head Start Improve Children’s Life Cch e ances? Evidence From a Regression Discontinuity Design. Jens Ludwig and Douglas L. Miller Does Social Security Privatization Produce Efficiency Gains? Shinichi Nishiyama and Kent Smetters ectoral Bias and Policy Choice: Theory and E vidence Timothy Besley and lan Preston .... Entitled to Work: U rban Prope rtyy Rights and Labor Supply in Peru E rica Fie ld From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes. Sandra E. Black, Paul J. Devereux, and Kjell G. Salvanes How Does Information Technology Affect Productivity? Plant-Level Compar- isons of Product Innovation, Process Improvement, and Worker Skills. Ann 3artel, Casey Ichniowski, and Kathryn Shaw How Large Are the Effects from Changes in Family Environment? A Study of Korean-American Adoptees. Bruce Sacerdote . Incentives for Managers and Inequality among Workers: Evidence from a Firm-Level Experiment. Oriana Bandiera, Iwan Barankay, and Imran Rasul ie ; Inside the Family Firm: The Role of F: milies in Succession Decisions and Per- formance. Morten Bennedsen, Kasper Meisner Nielson, Francisco Perez- Gonzalez, and Daniel Wolfenzon P ; Language and the Theory of the Firm. nena Crémer, Lau is Garic: ano, and Andrea Prat Measuring and Explaining Management Practices across Firms and Countries Nicholas Bloom and John Van Reenen Measuring Trends in Leisure: The Allocation of Time over Five Decades. Mark Aguiar and Erik Hurst \ New Droughts, New Floods, and U.S. Disaster Re lief. Thomas E isensee and David Stromberg a Obtaining a Driver’s License in India: An Experiment: m1 Appro: ach tto ‘Studying Corruption. Marianne Bertrand, Simeon Diankov, Rema Hanna, and Send- hil Mullainathan 1639 On Committees of Experts B:i uke Visser and Otto H Sw: ink . 337 Optimal! Fiscal Policy with Redistribution. Ivan Werning 925 Optimal Taxation with Endogenous Insurance Markets. Mikhail Golosov and Aleh Tsyvinski 487 Partisan Impacts on the Economy: Evidence ) from P rediction Mz arket ss and Close Elections. Erik Snowberg, Justin Wolfers, and Eric Zitzewitz .. 807 Price Discrimination, Copyright Law, and Technological Innovation: Evidenon ce from the Introduction of DVDs. Julie Holland Mortimer 1307 Relationship- — —s Contracts, and the Pattern of Trade. Nathan Nunn ; 569 Remedying Education: E V iden ce from Two Randomize d Exx periments in India. Abhijit Banerjee, Shawn Cole, Esther Duflo, and Leigh Linden 1235 Reservation Wages and Unemployment Insurance. Robert Shimer and Ivan Werning Selection, Growth, and the Size Distribution ofF irms. E 120 G. J L uttme r Socially Optimal Districting: A Theoretical and —— ical Exploration. Stephen Coate and Brian Knight _— Technology, Information, and the Decentr: alizs ation “of the Firm. Daron Acemoglu, Philippe Aghion, Claire Lelarge, John Van _ Reenen, and Fabrizio Zilibotti CONTENTS FOR VOLUME CXXII The Aggregate Effects of Health Insurance: Evidence from the Introduction of Medicare. Amy Finkelstein The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector. Robert Jensen The Formation of Beliefs: Evidence from the Allocation of Land T itless to Squat- ters. Rafael Di Tella, Sebastian Galiani, and Ernesto Schargrodsky ....... The Fox News Effect: Media Bias and Voting. Stefano DellaVigna and Ethan Kaplan 1187 The Illusion of Sustz inability. Michael Kremer and Edward Miguel 1007 The Marginal Product of Capital. Francesco Caselli and James Feyrer 535 The Value of Life and the Rise in Health Spending. Robert E. Hall and Charles I. Jones 39 Volatility and Deve lopment. Miklos Koren and Silvana Tenreyro . ; 243 What Do Parents Value in Education? An Empirical Investigation of Parents’ Revealed Preferences for Teachers. Brian A. Jacob and Lars Lefgren ’ . ’ « ( - rae. ' q e ‘ : Sa a miaggnioae ae