economics

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The Economic Impact of Heritable Physical Traits: Hot Parents, Rich Kid? (www.nber.org)

Since the mapping of the human genome in 2004, biologists have demonstrated genetic links to the expression of several income-enhancing physical traits. To illustrate how heredity produces intergenerational economic effects, this study uses one trait, beauty, to infer the extent to which parents’ physical characteristics...

What Do Shareholders Want? Consumer Welfare and the Objective of the Firm (www.nber.org)

Shareholders want a firm’s objective function to place some weight on consumer welfare, motivated by both self-interested and altruistic motivations. Firms have a unique technology for improving consumer welfare: lowering inefficient price markups, which increases consumer welfare more than it lowers profits. Optimal pricing...

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