The Journal of Economic Perspectives A journal of the American Economic Association Winter 2016 The Journal of Economic Perspectives A journal of the American Economic Association Editor Enrico Moretti, University of California at Berkeley Co-editors Gordon Hanson, University of California at San Diego Mark Gertler, New York University Associate Editors Anat Admati, Stanford University Nicholas Bloom, Stanford University Dora Costa, University of California at Los Angeles Amy Finkelstein, Massachusetts Institute of Technology Seema Jayachandran, Northwestern University Guido Lorenzoni, Northwestern University Emi Nakamura, Columbia University Richard Newell, Duke University Valerie Ramey, University of California at San Diego Scott Stern, Massachusetts Institute of Technology Managing Editor Timothy Taylor Assistant Editor Ann Norman Editorial offices: Journal of Economic Perspectives American Economic Association Publications 2403 Sidney St., #260 Pittsburgh, PA 15203 email:
[email protected] The Journal of Economic Perspectives gratefully acknowledges the support of Macalester College. Registered in the US Patent and Trademark Office (®). Copyright © 2016 by the American Economic Association; All Rights Reserved. Composed by American Economic Association Publications, Pittsburgh, Pennsylvania, USA. Printed by R. R. Donnelley Company, Jefferson City, Missouri, 65109, USA. 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 0895-3309), Winter 2016, Vol. 30, No. 1. The JEP is published quarterly (February, May, August, November) by the American Economic Association, 2014 Broadway, Suite 305, Nashville, TN 37203-2418. Annual dues for regular membership are $20.00, $30.00, or $40.00 depending on income; for an additional $15.00, you can receive this journal in print.