Journal of Economic Insight

Revisiting U.S. House Price Convergence: Evidence from State and Metropolitan Area Panels

2025-09-23T09:13:37-04:00

This study re-examines the long-run behavior of house prices across all U.S. states and the 100 largest metropolitan areas, employing a regression-based convergence test and clustering procedure proposed by Phillips and Sul (2007, 2009). The analysis spans the period from 1991Q1 to 2023Q2. The results reveal that U.S. house prices do not converge to a common steady state, suggesting heterogeneous housing price dynamics across states and metropolitan areas. Both states and metropolitan areas form multiple convergence clubs, which do not correspond to the conventional U.S. Census regions. This finding implies that geographically neighboring states and cities do not necessarily exhibit shared house price dynamics.

Heterogeneous Effects of Economic Hardships on Recreational Fishing Trips

2025-09-23T09:17:50-04:00

Recreational fishing is a leisure, yet sustenance providing, activity which suggests a complex relationship between the demand for the activity and economic hardship. We use random effects panel regression models and NOAA Marine Recreational Information Program data to evaluate the relationship between the demand for recreational fishing trips and economic hardships. Our results show heterogeneous effects of economic hardships on the demand for fishing trips across fishing modes and by economic indicator. In particular, unemployment rate has both current and prolonged effects on the demand for charter boat fishing trips, labor-force participation rate has current and lagged effects across private-boat and shore fishing trips, and gas prices and contractionary periods have a positive relationship with the demand for private-boat and shore fishing trips. These results highlight the heterogeneous outcomes different types of fishing will face during times of economic hardship. Understanding these impacts is important for planning purposes for business owners and natural resource managers, alike.

Does Firm Performance Impact Perquisite Usage? Evidence From Flights of Corporate Jets

2025-09-23T09:21:21-04:00

This paper studies the connection between firm performance and the utilization of perquisites, focusing on the impact of equity returns and the fluctuations of financial ratios on corporate jet flight activity. Our regression analysis shows that prior equity performance significantly influences flight activity to external locations of large firms in the sample. The findings suggest that the nonpecuniary benefits of corporate jet travel are a contributing factor to agency costs, particularly in instances related to firm size and the destination of the trips. These insights contribute to a deeper understanding of the complex factors influencing corporate decision-making and governance practices.

Divided We Fall: Why Consensus Matters

2025-09-23T09:27:42-04:00

Divided We Fall: Why Consensus Matters. ALICE M. RIVLIN, SHERI RIVLIN, ALLEN RIVLIN. Washing, D.C.: Brookings Institution Press, 2022. Pp. xx, 412.

Shock Values: Prices and Inflation in American Democracy

2025-09-23T09:29:49-04:00

Shock Values: Prices and Inflation in American Democracy. CAROLA BINDER. Chicago, IL: University of Chicago Press, 2024. Pp. 1, 346. $35.00.

Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy

2025-09-23T09:31:31-04:00

Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy. THERESA GHILARDUCCI. Chicago, IL: University of Chicago Press, 2024. Pp. 260. $25.00.