Do social norms drive the “polarization of reality” in American politics? We find Dems and Reps identify divergent norms governing factual statements, punish co-partisans who make politically uncongenial statements, and give less accurate answers when party norms are salient.

At the onset of COVID-19, invention novelty in the densest US cities fell sharply, largely due to lost face-to-face interactions. This shows that urban density’s role in idea exchange and recombination is critical, and unlikely to be permanently replaced by online communication.

Firms can exploit immigration by imposing larger mark-downs on native wages – if they have greater monopsony power over migrants than natives - but cannot perfectly wage-discriminate between them. The authors substantiate their claim empirically using US skill cell variation.

The authors study a VAT audit program in China using a regression discontinuity design. Audits raise reported taxes but do not affect real activity. Large firms respond by hiring consultants, using more related-party transactions, and remitting less VAT post-audit.

We are pleased to share articles previously published by the winners in our Economic Journal, for free, to celebrate the occasion. Read more on our website: bit.ly/4olRhqv @theeconjournal.bsky.social

Can financial sanctions weaken the dollar? 💸 A simple monetary model shows that the anticipation of geopolitical sanctions reduces foreign dollar reserves, erodes the dollar’s convenience yield, and leads to a depreciation. #geoeconomics #USD

Presidential words can change lives — and ruin them. After Reagan and Bush launched the War on Drugs, drug arrests surged in politically competitive counties — where local newspapers amplified the message. Black Americans paid the highest price.

The importance of genetics for school achievement increases with age, but only among low-SES students. Genetic gaps are not related to selection into neighborhoods or schools (unlike SES gaps) but capture differences in conscientiousness and subjective learning environments.

People are swayed by biased narrative, even when they know the bias. More information later does not always help. Awareness ≠ Correction.

Biased narratives are everywhere and pose challenges to society. Many advocate for awareness campaigns, assuming that awareness leads to correction. Experiments suggest otherwise.