Donald Palmer of University of California, Davis reviews, “The Fracturing of the American Corporate Elite” by Mark S. Mizruchi. The Econlit abstract of this book begins: “Examines the rise and fall of the American corporate elite between 1945 and the present and considers the role of this decline in the current crises of American democracy and economics. Discusses the rise of the American corporate elite; the state and the economy; labor as uneasy partner; the banks as mediators; the breakdown of the postwar consensus; winning the war but losing the battle—the fragmentation of the American corporate elite; the aftermath; and the ineffectual elite. Mizruchi is Barger Family Professor of Organizational Studies and Professor of Sociology and Business Administration at the University of Michigan.”

In this paper, we propose an instrumental variable approach to constructing confidence sets (CS's) for the true parameter in models defined by conditional moment inequalities/equalities. We show that by properly choosing instrument functions, one can transform conditional moment inequalities/equalities into unconditional ones without losing identification power. Based on the unconditional moment inequalities/equalities, we construct CS's by inverting Cramér–von Mises-type or Kolmogorov–Smirnov-type tests. Critical values are obtained using generalized moment selection (GMS) procedures. We show that the proposed CS's have correct uniform asymptotic coverage probabilities. New methods are required to establish these results because an infinite-dimensional nuisance parameter affects the asymptotic distributions. We show that the tests considered are consistent against all fixed alternatives and typically have power against n−1/2-local alternatives to some, but not all, sequences of distributions in the null hypothesis. Monte Carlo simulations for five different models show that the methods perform well in finite samples.

This article uses a game-theoretic, two-sided matching model and method of simulated moments estimation to study factors affecting the match of elementary teachers to their first jobs. We find that employers demonstrate preferences for teachers having stronger academic achievement (e.g., attended a more selective college) and for teachers living in closer proximity to the school. Teachers show preferences for schools that are closer geographically, are suburban, have a smaller proportion of students in poverty, and, for white teachers, have a smaller proportion of minority students. These results appear predictable but contradict findings from prior research estimating hedonic wage equations for teacher labor markets.

We conduct an empirical study of the impact of consumer price search on the shifting of cigarette excise taxes to consumer prices. We use novel data on the prices that smokers report paying and document substantial price dispersion. We find that cigarette taxes are shifted at lower rates to carton buyers and, especially, smokers who buy cartons of cigarettes in a state other than their state of residence. We also find evidence that taxes are shifted at somewhat lower rates to the prices paid by heavier smokers and at somewhat higher rates to the prices paid by smokers of light cigarettes.

This paper investigates the long-run recovery experience of US banks that received capital infusions under the Capital Purchase Program (CPP), a part of the Troubled Asset Relief Program (TARP). Based on a dynamic recovery model, our results show that recovering CPP banks tended to be in better financial condition than other CPP banks. Long-run event study analyses of common stock prices reveal that, in the quarter after repayment of TARP funds, CPP banks experienced economically large and significant buy-and-hold wealth gains of 14%, equivalent to approximately $329billion. We conclude that TARP was successful in fostering bank financial and stock price recovery.